Why Did BGN US Choose XCF Global to Launch Its Global SAF Supply Chain?

BGN International, a major global energy trading company, has signed a Memorandum of Understanding (MOU) with U.S. producer XCF Global. This agreement creates a global supply chain for Sustainable Aviation Fuel (SAF).

Cenan Ozmeral, President of BGN US, is spearheading this key growth strategy from Houston. The partnership is designed to combine XCF Global's SAF production capacity with BGN's extensive global trading and logistics network.

The Strategic Rationale for the Partnership

BGN chose XCF Global to gain access to a reliable, scalable SAF supply. XCF Global began SAF production at its Reno, Nevada, facility in early 2025. Its current production capacity is 38 million gallons per year.

For XCF Global, the partnership solves a critical challenge. As a producer, it lacks the necessary global distribution and sales network. BGN's strength is its logistics, including trading hubs in Geneva, Dubai, Singapore, and Houston. It operates in over 120 countries.

This collaboration will create a seamless, efficient supply chain. It will move SAF from feedstock to finished fuel for carriers worldwide.

Initial Distribution Goals

The immediate goal is to establish production of 16.5 million gallons annually. This output is planned to grow to 33 million gallons per year. Distribution will first target carriers on the U.S. and Canadian West Coasts. The next phase will focus on the European Union and Turkey.

Mr. Ozmeral noted the importance of reaching “obligated parties.” These are jet fuel suppliers in countries that have SAF mandates.

SAF Demand Driven by Global Mandates

The push for Sustainable Aviation Fuel (SAF) is driven by global regulatory pressure. SAF is produced from renewable feedstocks. It can reduce lifecycle greenhouse gas emissions by up to 80% compared to traditional jet fuel.

Crucially, SAF can be used in current aircraft fleets. It requires no changes to existing engines or fueling infrastructure.

Tightening International Regulations

Countries like the European Union (EU), U.K., Singapore, Japan, South Korea, and Turkey require minimum SAF blends. The EU's ReFuelEU Aviation regulation is a major driver. It requires a minimum 2% SAF blend at EU airports starting in 2025. This mandate rises to 6% by 2030 and 70% by 2050.

This regulatory environment is forcing jet fuel suppliers to include SAF. This creates immediate demand for BGN's new offering.

Market Growth and Challenges

The SAF market growth is significant. Global revenues are projected to grow from $3.72 billion in 2025 to $5.75 billion in 2026. Analysts foresee revenues hitting nearly $19 billion by 2029. The International Air Transport Association (IATA) estimates SAF will contribute about 65% of the emissions cuts needed for the industry's net-zero 2050 targets.

However, challenges remain. SAF currently trades at a significant premium over fossil jet fuel. IATA forecasts that airlines will face a $4.5 billion cost burden in 2026 due to these high premiums.

U.S. Policy and Private Sector Pressure

While the U.S. lacks federal aviation-specific SAF mandates, private sector pressure is growing. Major U.S. manufacturers are pushing air freight companies to use greener fuels. This is a powerful incentive for U.S. carriers like Delta and United to adopt SAF.

BGN is positioning itself to capture this momentum. The goal is to grow with the sector while aiding decarbonization of air travel globally. The company's existing strength in trading middle distillates, including jet fuel, makes this a natural expansion.

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