Conestoga Energy Announces Acquisition of SAFFiRE Renewables, LLC to Advance Production of SAF and Low Carbon Intensity Biofuels

Acquisition positions Conestoga at the leading edge of carbon-negative cellulosic biofuel production technology that can solve energy needs across multiple industries, including Sustainable Aviation Fuel

LIBERAL, Kan.--Conestoga Energy (“Conestoga” or the “Company”), the leading provider of low carbon intensity biofuel, today announced the acquisition of SAFFiRE Renewables, LLC (“SAFFiRE”), a process technology company that enables production of ultra-low carbon intensity ethanol and intermediates, from Southwest Airlines Renewable Ventures LLC. The acquisition includes all intellectual property, certain related technologies, the proposed pilot production facility, as well as key leadership team members, enabling Conestoga to further capitalize on the growing demand for reliable renewable fuels, including but not limited to sustainable aviation fuel (SAF). Terms of the transaction were not disclosed.

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With this acquisition, Conestoga will leverage SAFFiRE’s exclusive license to Deacetylation and Mechanical Refining (DMR) pretreatment technology developed at the U.S. Department of Energy’s National Renewable Energy Lab (NREL) to convert corn stover, a widely available agricultural by-product in the U.S., into ethanol with a carbon intensity (CI) score less than negative 100. SAFFiRE's pilot production facility will be co-located at Conestoga's Arkalon Energy plant in Liberal, Kansas, and is expected to be operational in 2026. Conestoga will advance plans for commercial-scale production facilities based on efficiencies gained at the pilot facility.

SAFFiRE’s proprietary production process converts a variety of abundant agricultural feedstocks into low-carbon intermediates for multiple end products, including low carbon ethanol used for SAF production. The company’s DMR technology operates at low temperatures and atmospheric pressure using standard industry equipment, delivering high sugar yields with reduced enzyme requirements while avoiding the operational challenges of traditional cellulosic biofuel production methods. Notably, the acquisition of SAFFiRE will unlock attractive improvements to the economics of a wide range of existing Conestoga technologies and processes.

"Sustainable aviation fuel represents a multi-billion-dollar market opportunity, and this acquisition positions Conestoga at the leading edge of efforts to bridge the critical supply-demand gap facing the aviation industry while creating transformative opportunities for American agriculture," said Tom Willis, CEO of Conestoga Energy. "The IP acquired in this transaction will provide us with tremendous optionality not only as it relates to SAF feedstock production, but across our operations. The momentum behind low CI fuels is undeniable, driven by regulatory requirements, corporate commitments, and environmental necessity, and this acquisition is reflective of our commitment to delivering the lowest carbon biofuel solutions while creating new value streams for rural communities across America."

In addition to all IP and existing technologies, key employees will be transitioning to Conestoga as part of the acquisition, including Marykate O’Brien, Chief Technology Officer, and Nitin Kolhapure, Director of Engineering.

Today’s announcement comes on the heels of Conestoga’s recent completion of drilling operations for its first Class VI well, a major milestone in the Company’s carbon capture, utilization, and sequestration (CCUS) strategy. Located near the Bonanza BioEnergy ethanol plant in Garden City, Kansas, it will serve as the cornerstone of Conestoga’s initiative to permanently store carbon dioxide emissions generated during the ethanol production process. The addition of a Class VI disposal well not only advances the Company’s long-term decarbonization objectives but also strategically complements its existing Class II enhanced oil recovery (EOR) operations, broadening the range of carbon management solutions while enhancing operational flexibility across its portfolio.

About Conestoga Energy

Headquartered in Liberal, Kansas, Conestoga is a renewable energy company focused on providing the lowest carbon, sustainable biofuel, and related bio-alcohol and ingredient solutions. Conestoga owns two ethanol plants and manages over 200 million gallons per year along with related co-products across Kansas and Texas. Conestoga has been capturing CO₂ for over 15 years primarily for Enhanced Oilfield Recovery (EOR), and generates both Corn-Based Ethanol (D6) and Cellulosic Biofuel (D3) RINs. Conestoga is one of the largest traders in obligated carbon markets, including RINs, LCFS, RGGI and CCA. For additional information about Conestoga, visit www.conestogaenergy.com.