BGN Int., one of the world's leading energy trading companies, recently signed a memorandum of understanding with Houston-based XCF Global, a U.S. producer, for feedstock supply, trading and distribution of SAF (sustainable aviation fuel). This marks a key milestone in BGN's growth strategy led by its Houston-based U.S. operation, which is headed by President Cenan Ozmeral, an energy industry veteran.
Why is SAF important? Sustainable aviation fuel is produced from renewable and sustainable feedstocks and is essential for decarbonizing air travel while maintaining global connectivity. It is a blend of synthetic paraffin kerosene (SPK) and jet fuel. Unlike fossil-based jet fuel, SAF can reduce greenhouse gas emissions by up to 80 percent over the lifecycle of the fuel compared to traditional jet fuel it replaces. Of even greater significance, SAF can be used in current airline fleets, without requiring changes to existing aircraft engines or fueling infrastructure. It offers an immediate, scalable solution to cut aviation's carbon footprint and is critical to helping international airlines respond to growing regulatory pressure to meet net-zero targets.
Currently, the European Union (EU), U.K., Singapore, Japan, South Korea and Turkey require minimum amounts of SAF to be blended into jet fuel. The EU, for example, requires jet fuel to be 2 percent SAF, a number that rises every year. The U.S. has no such aviation-specific mandates, instead prioritizing incentives. Delta, United, KLM, Lufthansa, and several other international carriers are already using SAF in their fleets.
As emissions controls tighten across the aviation sector, SAF demand and adoption are set to grow. Global revenues were just over $2 billion in 2024, a number that was expected to roughly double in 2025. Analysts foresee revenues hitting nearly $19 billion by 2029, driven by international government mandates to include SAF in jet fuel mixes. According to the International Air Transport Association, airlines will need approximately 165 billion gallons of SAF annually by 2050 to meet net-zero emission targets.
XCF Global, a Nasdaq-traded company, began making SAF at its Reno, Nevada, facility early in 2025, with a production capacity of 38 million gallons per year. The company is already considering increasing its capacity. However, XCF Global needs a ready-to-use global distribution and trading network to deliver its SAF products to carriers worldwide. This makes BGN, which already delivers jet fuel to major worldwide carriers, the perfect SAF partner for XCF Global.
Dr.Cenan Ozmeral, President of BGN US, explains why his company chose to partner with XCF Global on SAF, and what BGN, with its trading hubs in Geneva, Dubai, Singapore, Houston and operations in more than 120 countries around the world, brings to the agreement.
Q: What are the headline goals of the agreement and how does it translate into practical milestones over the next 12–18 months?
A: At the beginning, we see production of 16.5 million gallons annually, growing to 33 million gallons per year. We are targeting carriers and distributors on the US West Coast and we'll start shipping to the U.S. and Canadian West Coasts. Then to other countries in the European Union and Turkey, to what we call obligated parties. We can eventually bring it to Houston. Not only to sell in the Houston area, but to transport to the East Coast via pipeline. We are working with our partners to finalize the supply chain and ensure steady and increasing production of SAF. We need to establish blending, transportation and airport delivery to ensure that the SAF can be available at airports for use.
Q: What are obligated parties?
A: Obligated parties are the jet fuel suppliers in countries that have SAF mandates.
Q: Why is BGN expanding into SAF segment now?
A: Let's first talk global and then we'll talk U.S. As well as trading crude oil and gas products, BGN trades middle distillates products. Middle distillates include jet fuel. We have contracts with many suppliers to airports who we provide with jet fuel. With recent EU mandates, these companies become obligated parties. This means that they are obligated to provide SAF in the jet fuel mix they distribute to airports. So, the suppliers are now asking BGN to include SAF in their jet fuel shipments.
Q: What made XCF Global the right partner for BGN?
A: We are really pleased to be partnering with XCF. As a producer, XCF doesn't have its own sales and marketing organization. This partnership means XCF will benefit from BGN's global distribution networks, storage and shipping infrastructure that will connect XCF's supply to customers all over the world. BGN has trading hubs in 7 strategic locations around the world, and operates in 120 countries globally, as well as owning one of the largest shipping fleets in our sector. So, it's a good match for both companies.
Q: Let's open the lens a bit wider and talk about BGN's Houston operations. In addition to SAF, what are your other lines of business?
A: BGN started trading in Houston in 2017. Our business in the U.S. has mainly focused on trading and supply of chemicals like styrene (a hydrocarbon used in manufacturing), butyl acylate (a polymer used in paints and adhesives), butyl acetate (a solvent used in nail polish) and glycol (used in polymers). We ship these products to markets including Latin America, Europe and Asia and we market them in Latin America, as well. We also continue to look for new markets and opportunities where we see rising demand, for instance TPU, or thermoplastic urethanes. We are planning to import TPU from our plant in Turkey to industrial customers in the U.S. TPUs are plastics that are widely used in products from your cell phone cover, to laptops, automotive, medical supplies and machinery, so we see great potential for this market.
Q: BGN is a global energy company. How does its reach help your new SAF business?
A: BGN's trading strength is in its global reach. As I've said, we have operations in more than 120 countries, and distribution networks including storage, terminals and shipping services across the world. We provide trading, financing and distribution for customers throughout the energy value chain. We will market our product worldwide and we will trade SAF and feedstocks worldwide.
Q: Finally, let's talk government policy in the U.S. and SAF. Different administrations have different policies on promoting SAF and other lower-emissions fuels. How do you navigate a policy landscape that can change every few years?
A: That's true, but there are private-sector forces at work, too. The world's largest industrial and consumer-goods manufacturers are in the U.S. and they are increasingly telling air freight companies they will use competitors to ship their products unless the freight companies start using greener fuels like SAF. That is a powerful incentive for U.S. carriers to adopt SAF use, even without federal government mandates. When it comes to private jets, you are seeing increasing public pressure on social media for celebrities and CEOs to use sustainable, low emission fuels in their private jets.
With this kind of pressure applied to the aviation sector from both legislative and public bodies, it's inevitable that we will see an uptake in airline carriers adopting SAF in their jet fuel mix. We are sure SAF production and supply is poised for significant growth. BGN is already a leader in jet and transition fuels, and we are positioning ourselves to capture this momentum and grow along with the sector, while also contributing to achieving global decarbonization goals.
