CONCEPT NOTE

Philippine tLCAF to Biogenic eSAF
Integration Program

A chemistry-led transition from a 3,000-bpd fossil tLCAF refinery to a Philippine Biogenic eSAF plant, applying one neat fuel chemistry to two carbon sources.

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Financing scope of this note

This note presents a two-track financing request aligned with the respective policies and mandates of the International Finance Corporation and the Asian Development Bank.

• IFC Track (Stage 1): A US$50 million financing package for a dedicated 3,000-bpd fossil tLCAF refinery in the Philippines, structured as a private-sector industrial efficiency investment. The ask is conditional on an early written IFC climate and Paris-alignment screen.

• ADB Track (Stage 2 and Technical Assistance): A US$500,000 to US$1.0 million ring-fenced technical assistance grant to prepare the biogenic eSAF plant for financing consideration, plus early policy and Paris-alignment engagement. The grant is preparation, not plant capital. The Stage 2 raise that follows the named gates is of a different order, indicated at approximately US$1.0 billion as a concept estimate only, and becomes a formal financing request only after those gates are met.

Stage 1 is a downstream fossil fuel-upgrading facility. Stage 2 is a biogenic eSAF plant. The two stages share one chemistry and are financed separately.

Program premise

The industry has twice tried to change aviation fuel by changing the feedstock first. Fischer-Tropsch liquids reached flight trials through expensive trial and error, only to confront high freezing point and no natural lubricity. HEFA, the renewable-diesel offshoot made from used cooking oil, lacks lubricity and solvency, so it enters service blended with fossil jet fuel carrying surplus aromatics. At the 50 percent blend cap, half of every liter remains fossil.

DM-XTech reverses the sequence. Chemistry first, feedstock second. Stage 1 develops and proves the target fuel chemistry against existing standards, using available kerosene-range feedstocks. The chemistry is designed, not inherited from conventional petroleum refining. It addresses sulfur, soot-forming tendency, lubricity and the wider non-CO2 profile without compromising safety or specification compliance.

Stage 2 applies the same chemistry to renewable carbon. The Stage 2 product is biogenic eSAF. Biogenic eSAF is eSAF in which the carbon used to make the fuel is biogenic rather than atmospheric CO2 captured through direct air capture. This is the program's defining distinction in the eSAF category. The tLCAF chemistry provides the lineage that enables a neat fuel, and biogenic eSAF carries that chemistry into Stage 2.

The same chemistry that makes tLCAF a 100 percent neat drop-in fuel is what makes biogenic eSAF a 100 percent neat drop-in fuel. The carbon source changes. The neat fuel property does not.

This sequencing is not theoretical for DM-XTech. Its founder has developed ultraclean fuels commercially since the early 1990s: the first unleaded, ultralow-benzene gasoline in the Philippines and among the first in Southeast Asia, commercial supply of dearomatized solvents to Bayer Philippines and Pilipinas Shell, and an early version of the fuel chemistry that is now tLCAF.

Wider context. CORSIA's LCAF category was created in 2016 because SAF alone could not deliver the near-term aviation emissions trajectory. Nearly a decade later, no commercial LCAF supply has reached the market. The CORSIA LCAF framework contemplates a lifecycle GHG reduction and does not address contrails, which the DLR and Nature assessments identify as a leading contributor to aviation's non-CO2 climate effect. tLCAF, like LCAF, is fossil-based, but its chemistry reduces soot exhaust and SOx aerosols, which are precursors of contrail formation and which existing SAF and eSAF pathways do not directly address. tLCAF also has no waste-lipid feedstock constraint. That combination gives tLCAF potential standalone mitigation value beyond this two-stage program, if it is adopted at scale by the wider airline fleet. The program does not claim that outcome. It is stated here as context for why the chemistry is worth proving now.

Executive Summary

DM-XTech's 100-bpd pilot tLCAF plant produced the samples tested by the Translational Energy Research Centre (TERC) at the University of Sheffield in early 2025. The proposed 3,000-bpd Stage 1 refinery is a 30x nameplate scale-up of that plant, which remains a material engineering step requiring FEED, pilot-data verification and scale-up validation by lenders' technical advisers. TERC records a fuel-property profile within the tested specification limits, required lubricity performance and lower nvPM at the tested APU operating points. The commercial product specification targets sulfur of 15 ppm, compared with the ASTM D1655 maximum of 3,000 ppm. Each commercial batch will require full release testing under the applicable standards and chain-of-custody controls.

tLCAF is a fossil-based transition fuel with the right chemistry for 100 percent neat aviation use. It meets ASTM D1655, DEF STAN 91-091 and NATO F-35 without a blend cap. It carries the aromatic and lubricity characteristics that neat HEFA lacks. It addresses non-CO2 emissions through measured reductions in nvPM mass and number. It is available now, and it is not constrained by finite waste-lipid supply.

Stage 1 is a dedicated 3,000-bpd fossil tLCAF refinery, structured as an IFC-track private-sector investment. It will target the EU market, where operators face non-CO2 monitoring and reporting requirements under EU Regulation 2024/2493 and need measured fuel-property and emissions evidence. A parallel track addresses helicopter OEM demand for EcoGuard Jet A-1, a version of tLCAF engineered to contain under 100 ppm naphthalene against the ASTM D1655 ceiling of 3.0 vol%, approximately 30,000 ppm. DM-XTech has opened an official engagement with Airbus Helicopter following a demonstration of its ultraclean diesel. Engagement is at an early stage.

Stage 2 is a biogenic eSAF plant in Luzon. It applies the Stage 1 neat fuel chemistry to renewable carbon, using the settled route described in this note. The current concept estimate of approximately US$1.0 billion is a long-term program figure, not a financing request.

DM-XTech does not describe fossil tLCAF as SAF or biogenic fuel. It does not describe biogenic eSAF as qualified until qualification is complete. It defines a financed route from a proven neat fuel chemistry on fossil carbon to the same neat fuel chemistry on renewable carbon.

1. The Problem: SAF Scale and Neat-Fuel Limits

SAF is necessary for long-term aviation decarbonization, but current supply and fuel characteristics limit near-term scale.

• Feedstock scarcity: HEFA, the dominant commercial SAF pathway, relies heavily on used cooking oil, animal fats and other waste lipids. These are finite resources with competing uses. Adding capacity does not create more waste-lipid supply.

• Scalability: Available waste lipids cannot support aviation demand at the volumes implied by policy mandates. Scarcity raises cost, supply risk and competition among markets.

• Neat-fuel constraints: Conventional neat HEFA contains little or no aromatics and may require measures for seal compatibility and lubricity. Current ASTM D7566 pathways enter service through blending with conventional jet fuel, most commonly capped at 50 percent.

• Supply remains binding after blending: A 50/50 SAF-fossil blend can provide needed conventional-fuel properties, but it does not remove the feedstock bottleneck or continued dependence on fossil Jet A-1.

EU Regulation 2024/2493 requires covered aircraft operators to monitor and report non-CO2 aviation effects, with monitoring obligations in effect from 1 January 2025. It is a reporting regime, not a current purchase mandate or penalty mechanism. tLCAF addresses near-term fuel-property and non-CO2 emissions objectives while scalable renewable supply is developed. DM-XTech will provide measured evidence for operators and verifiers. It will not guarantee regulatory compliance.

2. CORSIA, LCAF and the Deployment Gap

ICAO member states adopted CORSIA and the LCAF framework in October 2016. The CORSIA eligible fuels framework requires at least a 10 percent reduction in lifecycle greenhouse gas emissions for LCAF against the fossil baseline. The category was created because SAF alone could not deliver the near-term trajectory, and the sector needed an additional lever.

Nearly a decade later, no commercial LCAF supply has reached the market. None of the CORSIA-approved sustainability certification schemes is yet approved to certify an LCAF producer. That is the deployment gap. The gap is evidence that a certification-first pathway has not produced supply, not evidence that the concept is irrelevant.

The CORSIA LCAF framework has two limitations that matter for this program. First, the framework contemplates a lifecycle GHG reduction but does not itself produce supply. Second, the framework does not address contrails. The DLR and Nature assessments identify contrails and other non-CO2 effects as a leading contributor to aviation's near-term climate impact, comparable in energy terms to the cumulative CO2 effect from all commercial flight since the 1940s. A framework that leaves contrails out of the certification basis leaves a substantial part of the climate problem unaddressed.

DM-XTech's tLCAF is designed against both limitations. It does not wait for a certification framework to mature. It stays inside the existing specification envelope, where aviation fuel actually moves today. And its chemistry reduces soot exhaust and SOx aerosols, which are precursors of contrail formation and which existing SAF and eSAF pathways do not directly address. tLCAF does not claim CORSIA LCAF status, and it does not claim a lifecycle reduction it does not yet have. What it claims is a measurable non-CO2 advantage, a 100 percent neat drop-in property, and availability now.

3. Stage 1: Dedicated Fossil tLCAF Refinery (IFC Track)

Stage 1 will scale the 100-bpd pilot plant by 30x to a dedicated 3,000-bpd fossil tLCAF refinery. The pilot produced the TERC samples and remains the technical basis for scale-up. The commercial plant will produce tLCAF for EU customers and EcoGuard Jet A-1 for helicopter applications, establishing commercial volumes, operating history, customer contracts and cashflow. During due diligence, DM-XTech will provide lenders' technical advisers with independent access to TERC test data and reports, the commercial product specification and the proposed 30x scale-up methodology for verification. A documented pilot verification campaign - instrumented run hours and product-quality records - will be executed as part of early project works under the FEED program.

EcoGuard Jet A-1 is the occupational-health expression of the same chemistry: a version of tLCAF engineered to contain no more than 100 ppm naphthalene. Naphthalene is classified by IARC as possibly carcinogenic to humans, and the ASTM D1655 ceiling of 3.0 vol%, approximately 30,000 ppm, permits levels roughly 300 times the EcoGuard design target. Helicopter operations concentrate exposure because engines run during boarding and ground handling while crews work within meters of exhaust. EcoGuard targets that exposure directly.

Production model and feedstocks

Stage 1 will use sulfolane, an industry-standard solvent for aromatics extraction, to remove selected aromatics from kerosene-range feedstocks, followed by formulation and finishing steps required to meet the finished-fuel specification. The plant up-specifies kerosene-range streams rather than refining crude oil. FEED must establish the mass balance, solvent circulation and recovery, energy demand, solvent losses, corrosion controls, emissions, waste handling, product yield and process-safety basis. DM-XTech's founder has commercially produced and sold dearomatized petroleum solvents since the 1990s, including supplies to Bayer Philippines and Pilipinas Shell.

Commodity Dual Purpose Kerosene (DPK) will provide the baseload feedstock. Qualified kerosene-range streams from DM-XTech's chemicals operations form a third supply category. Discounted distressed Jet A-1 cargoes may provide opportunistic upside when they pass intake qualification, but no committed production volume or base-case economics depend on them.

Stage 1 parity pricing is a base-case objective, not a demonstrated commercial margin. The proposed margin structure has three elements: Jet A-1 parity pricing for tLCAF; a second revenue stream from recovered mixed aromatic solvents comparable in market function to established mixed-aromatic-solvent grades; and a narrow process scope expected to reduce capital intensity relative to full crude refining. FEED will test product yields, solvent recovery, energy use, feedstock differentials, mixed-aromatics quality and realizable netback, logistics, fixed and variable OPEX, working capital and contingency.

TERC evidence and MRV position

TERC testing used a Honeywell 131-9A APU and Dekati ELPI+ instrumentation. The results show lower normalized nvPM mass and number for tLCAF than the Jet A-1 baseline at idle and full load. These results are independent performance evidence at the tested APU operating points. They are not a reported NEATS footprint and are not a regulatory compliance result. The measured data can support an operator's non-CO2 MRV process under EU Regulation 2024/2493, subject to the operator's methodology and verifier acceptance.

An airline burning tLCAF today gains four things: primary fuel-property and emissions data where defaults would otherwise apply; a measured performance case at the tested conditions; early evidence-building on a regulatory trajectory that points one way; and no need for fleet, infrastructure or supply-chain change because tLCAF is designed for 100 percent neat use.

DM-XTech's position is precise. The MRV regime is a reporting obligation, not a purchase mandate. No non-CO2 penalties are in force today. DM-XTech will provide evidence, not guarantee compliance.

4. Stage 2: Biogenic eSAF Plant (ADB Track)

4.1 Near-term feedstock: Luzon agriwaste

The immediate source of bio feedstock for Stage 2 is agricultural waste from Luzon. Rice husks, rice straw, coconut residues and other qualified agricultural residues are available now and do not compete with food production. A DOE-USAID resource assessment, dated circa 2015 to 2016, identifies Luzon biomass potential of approximately 2,094 MW, with national potential at approximately 4,450 MW and only 591 MW currently installed, representing about 13 percent of the total. Specific Luzon agriwaste studies that underpin the Stage 2 feedstock case will be cited in the evidence register in Annex A. Their identification and quantification is a named work package deliverable.

4.2 Long-term feedstock: Dedicated Energy Crops

For the long term, Stage 2 feedstock will come from on-purpose, large-scale farming of Dedicated Energy Crops. This component of the program will be proposed to the Philippine government and handled by the Department of Agriculture and the National Commission on Indigenous Peoples (NCIP).

Distributed densification plants will be sited according to feedstock condition, siting evidence and logistics. Wet biomass, including wet Dedicated Energy Crop feedstock, is converted to biocrude through hydrothermal liquefaction. Dry biomass, including dry agricultural residues or agricultural waste, is converted to biocrude through rapid thermal processing. Using both pathways gives the program flexibility to process available wet and dry feedstocks rather than forcing unlike feedstocks through one conversion route. .

4.3 The settled Stage 2 process route

Dedicated Energy Crops are converted into biocrude through hydrothermal liquefaction at distributed HTL plants, while agricultural waste is converted into biocrude through distributed rapid-thermal-processing plants. The resulting biocrudes are transported to a centralized gasification facility. The biocrude streams will be gasified through a nitrogen-free pathway, avoiding both a dedicated air-separation unit and nitrogen dilution of the syngas. The two candidate pathways are chemical-looping oxygen transfer and externally heated steam gasification. The final pathway will be selected through WP-1 and WP-2 on the basis of the integrated mass and energy balance, process integration and technology readiness.

The syngas is subjected to water-gas shift to convert carbon monoxide and steam into biogenic CO2 and additional hydrogen. These streams are separated and used in the direct hydrogenation of CO2 to hydrocarbons, which are subsequently upgraded and refined into jet-fuel-range kerosene. The resulting biogenic eSAF uses carbon derived from dedicated energy crops and agricultural waste, distinguishing it from eSAF produced by hydrogenating atmospheric CO2 captured through direct air capture.

Following gasification, water-gas shift, separation and direct CO₂ hydrogenation, the product is upgraded and refined into jet-fuel-range kerosene. Upgrading and refining is treated as a single process block at this disclosure level.

4.4 Work package summary

The route above is the program's defining Stage 2 pathway. Its engineering substantiation is the work of the ring-fenced ADB technical assistance described in this note and detailed in Annex A. Each work package solves a specific problem and enables a specific decision.

• WP-1 establishes the integrated mass and energy balance and enables the decision on route configuration, hydrogen sufficiency and module scale.

• WP-2 establishes integration risk and technology readiness and enables selection of the nitrogen-free gasification pathway and the validation plan.

• WP-3 establishes lifecycle boundaries and carbon evidence and enables credible emissions claims and Paris-alignment assessment.

• WP-4 establishes the qualification and product-acceptance path and enables the decision on testing, certification and market-entry sequence.

• WP-5 establishes rights, licensing, integration responsibility and delivery structure and enables the decision on the commercial and contracting model.

• WP-6 establishes feedstock availability, condition, siting and logistics and enables the decision on wet and dry conversion capacity, plant locations and supply reliability.

4.5 First module and scale comparison

The first module is defined as the smallest independently bankable train that demonstrates the integrated route end to end, from feedstock through qualified fuel.

Three configurations will be tested in pre-feasibility: the first independently bankable module; the full-scale configuration; and a staged build-out from the first module to full scale. The comparison will test capital intensity, operating requirements, lifecycle performance, technical and integration risk, qualification path, feedstock coverage, hydrogen requirements, logistics, offtake coverage, financing needs and delivery schedule.

The approximately US$1.0 billion figure remains a concept estimate only. It is not a financing request and not a validated project cost.

4.6 Market context

Argus calculated costs published in November 2025 placed eSAF production at approximately 13 times the cost of conventional jet fuel and 3.5 times the cost of HEFA-based SAF in northwest Europe. These are Argus comparisons from one stated methodology and period, not ratios derived from separate Platts assessments.

ReFuelEU Aviation places minimum SAF supply obligations on aviation fuel suppliers, including a 1.2 percent synthetic aviation fuel requirement from 2030. It also requires covered aircraft operators to uplift at least 90 percent of their annual fuel requirement at each Union airport, subject to the regulation's exemptions, to limit fuel tankering. The UK SAF Mandate likewise places the compliance obligation on fuel suppliers and introduces a power-to-liquid obligation from 2028, beginning at 0.2 percent of total jet fuel demand. Airlines are not the obligated purchasers under these supply mandates, but they face commercial and compliance exposure through fuel uplift requirements, EU ETS, UK ETS and CORSIA, and through the pass-through of SAF costs in aviation fuel prices. The mandates therefore create regulated supplier demand while airline economics and carbon obligations shape offtake and willingness to pay.

4.7 Power strategy and conditional hydrogen backup

The Stage 2 plant will be powered by captive solar PV with battery energy storage. The grid will serve as backup only. Captive power is a committed design decision for Stage 2 and is not contingent on any downstream work package. It removes electricity price risk from the largest variable cost in the process, locks in low-cost renewable supply, reduces lifecycle emissions, and strengthens the sustainability case.

The Philippines has among the highest residential electricity prices in Southeast Asia. Utility-scale solar is now among the cheapest in the region. The Green Energy Auction Program (GEA-4) established ground-mounted solar reserve prices at approximately PHP 4.4832 per kWh, with integrated solar plus storage at PHP 5.4028 per kWh. The ACWA Power 500-MW solar-plus-storage project at New Clark City sets an initial-investment floor of at least US$400,000 per megawatt for integrated solar PV and BESS.

The core Stage 2 route produces hydrogen through the water-gas shift. WP-1 will determine whether the resulting hydrogen volume is sufficient for direct CO2 hydrogenation and the remaining plant requirements. If a shortfall is established, an electrolyzer, including an SOEC option, may be assessed as a conditional backup supply. Any backup draws from the committed captive solar PV and BESS system and does not create a separate power supply requirement.

5. Transition Mechanism and Firewall

The two stages are financed separately and are governed separately. The transition from Stage 1 to Stage 2 is documented through a separately capitalized Stage 2 development vehicle, funded by a sponsor development budget tied to dated development gates. An escrow or reinvestment covenant is the documented fallback mechanism if the primary structure cannot be implemented as proposed.

The following governance intent applies. These points are stated as intent, not as enforceable legal terms. Legal drafting and confirmation by counsel are required.

• ADB support and proceeds are ring-fenced to Stage 2 biogenic eSAF and public-good activities.

• ADB has no financial exposure to fossil Stage 1.

• Any Stage 1 parity support through the cPSA pool is privately funded, capped, time-limited, separately governed and never replenished by any DFI.

• The Stage 2 vehicle has separate capitalization, accounts, budgets, approvals and reporting.

• Sponsor funding is linked to dated and verifiable Stage 2 development gates.

• Escrow or reinvestment provides a fallback means of protecting the transition commitment.

• No cross-default, security or cash-sweep arrangement will expose ADB to Stage 1, absent explicit ADB review.

Proceeds separation and enforcement of the TA exclusion of Stage 1 FEED and any Stage 1 cost are stated as mechanisms in Annex A, subject to legal drafting.

6. Financing Structure

6.1 IFC Track: Stage 1 Financing Request

This note requests a US$50 million financing package for Stage 1 for IFC consideration, structured as a private-sector industrial efficiency investment. The ask is conditional on an early written IFC climate and Paris-alignment screen. Until that screen exists, this note does not present Stage 1 as financeable to IFC or to any other party.

FEED is the first use of proceeds. Financing will be sequenced against defined gates: validated product and TERC evidence; independent verification of TERC data, the commercial product specification and scale-up methodology; FEED; site, permits and technology packages; EU customer engagement and offtake; equity close; debt close; construction and commissioning. At a nameplate capacity of about 140,000 tonnes per year, the proposed US$50 million capital requirement is about US$360 per annual tonne, low relative to the roughly US$700 to 1,000 per annual tonne implied by the SAFCO financing package. FEED and lender technical review must validate these assumptions.

IFC precedent. IFC's 2017 investment in Tupras (Turkey), Project 36388, is cited here as historical context. IFC provided a US$100 million A loan for sulphur recovery, research and development, and capacity increase at an existing refinery. That transaction occurred under the policy environment of 2017. It is not evidence of current eligibility for a new dedicated fossil aviation-fuel refinery. Current eligibility is subject to the early written IFC climate and Paris-alignment screen requested above.

6.2 ADB Track: Technical Assistance and Stage 2 Financing

This note requests a separate US$500,000 to US$1.0 million ring-fenced technical assistance grant for ADB consideration. The immediate request is for technical assistance, early policy engagement, Paris-alignment engagement, and consideration of financing after named gates are met. Engagement begins now. Any formal financing request for Stage 2 follows the gates.

TA proceeds are ring-fenced to Stage 2 biogenic eSAF project preparation and enabling public goods. The two routed workstreams are:

• Government-counterpart work through DOE and NBB for policy integration, MRV protocol development, SAF roadmap work and the staged tLCAF-to-biogenic-eSAF implementation plan. This work is a public good and does not subsidize Stage 1.

• Stage 2 technical assistance for the six work packages in Annex A. These are necessary to establish the Stage 2 investment case. Where market work is included, it is confined to establishing demand for the renewable product or to genuine public-good questions on neat-fuel and non-CO2 attributes. Work that would subsidize Stage 1 is excluded.

Stage 1 FEED is expressly excluded from the TA grant. The enforcement mechanism is stated in Annex A. It includes separate cost codes, an audited TA expenditure certificate at each draw, and a specific representation from the sponsor that no TA funds have been applied to Stage 1 FEED or any Stage 1 cost.

6.3 Risk-Sharing Structure for the Stage 2 Ask

The Stage 2 ask is structured as blended finance with explicit first-of-a-kind risk-sharing. The recommended capital stack is presented below. Sources and amounts are indicative and subject to diligence.

7. Government Integration

Parallel initiative, outside the ADB and IFC financing perimeter. The long-term Dedicated Energy Crops component described in Section 4.2 will be developed through a separate proposal to the Philippine Department of Agriculture and the National Commission on Indigenous Peoples. That track concerns land tenure, agronomy, distributed densification siting, and rural development and is not part of the ADB or IFC financing request in this note. It is noted here for completeness of the program record.

8. Development Impact

• Foreign-currency earnings: EU non-CO2 reporting creates an evidence need that Philippine production can serve, subject to customer validation. Exports of tLCAF now, and biogenic eSAF later at scale, can generate foreign-currency earnings.

• Occupational health and safety: EcoGuard Jet A-1 is engineered to contain no more than 100 ppm naphthalene against the ASTM D1655 ceiling of 3.0 vol%, approximately 30,000 ppm. Helicopter operations concentrate exposure because engines run during boarding and ground handling while crews work within meters of exhaust. EcoGuard targets that exposure while remaining within the Jet A-1 specification envelope.

• Climate performance as market access: TERC data indicate lower nvPM than the Jet A-1 baseline. Documented non-CO2 performance can support EU market access for Philippine-produced fuel. The program will generate operating evidence relevant to non-CO2 MRV without representing that the evidence guarantees regulatory compliance.

• Industrial capability and jobs: Stage 1 creates refinery operations, laboratory, quality, maintenance and export roles. Stage 2 can add HTL, RTP, gasification, direct CO2 hydrogenation, upgrading, solar, storage, fabrication, feedstock logistics and process-integration jobs.

• Rural value creation: Rice husks, rice straw, coconut residues and other qualified waste biomass can supply Stage 2 in the near term. Long-term DEC supply depends on agronomic and land suitability work covered in Annex A and on the parallel DA and NCIP initiative.

• First-mover positioning: An early standards-compliant tLCAF refinery, followed by a qualified biogenic eSAF pathway, can place the Philippines ahead of regional competitors.

• Transition integrity: The project defines a funded, testable sequence from fossil-based tLCAF to biogenic eSAF. It does not describe the current fuel as renewable, and it does not assert completed ASTM qualification for neat use of the future biogenic eSAF product.

• Scale: Stage 1 is not constrained by finite waste-lipid supply. Stage 2 broadens the resource base to Philippine waste agricultural biomass and, over the long term, to Dedicated Energy Crops.

Domestic market relevance would follow only if Philippine fuel and aviation regulations move in the same direction. The NBB SAF roadmap work is at an early stage and is not assumed in the base case.

9. Key Risks

10. Requested Action

DM-XTech requests:

IFC Track:

1. An early written IFC climate and Paris-alignment screen on the proposed Stage 1 fossil tLCAF refinery. The Stage 1 financing ask is conditional on this screen.

2. IFC engagement on the US$50 million financing structure if the screen supports participation, structured as a private-sector industrial efficiency investment.

3. IFC technical advisory support on equity structuring, technology licensing, commercial agreements, governance and later capital-raising readiness.

ADB Track:

4. An ADB technical assistance grant of US$500,000 to US$1.0 million, ring-fenced to Stage 2 biogenic eSAF project preparation and enabling public goods, organized in the two routed workstreams described in Section 6.2.

5. Early ADB policy and Paris-alignment engagement on the Stage 2 route and its alignment with ADB's 2021 Energy Policy as amended in November 2025.

6. ADB financing consideration after named gates on the Stage 2 biogenic eSAF plant, including captive solar and BESS. Any formal financing request follows the gates.

Joint:

7. Joint engagement with DOE, DOST, NBB, BOI and CAAP to define the regulatory route for Stage 1 tLCAF deployment and the later Stage 2 biogenic eSAF program.

8. Support for airline, customer and verifier engagement that preserves DM-XTech's position as an evidence provider, not a compliance guarantor.

Closing position

The immediate proposition is a financeable fuel business: a US$50 million, dedicated 3,000-bpd tLCAF refinery serving the EU market with a superior conventional-grade product, Jet A-1 parity as its base case and measured non-CO2 evidence. It scales a pilot plant that produced the TERC samples by 30x. The development proposition is the transition it enables: cashflow, operating history, transferable neat fuel chemistry and investor confidence for a Philippine biogenic eSAF plant. Keeping these decisions separate makes the present ask clear and the long-term program credible.

Annex A (companion document)

Annex A: Work Package and Evidence Framework sets out the six technical work packages, the deliverables, the owners, the decisions gated, and the evidence register. Annex A is the controlling document for the TA-funded scope and for the module-versus-full-scale-versus-staged comparison worksheet referenced in Section 4.5.

APPENDIX A: TERC Comparative Emissions Evidence

On 26 March 2025, the University of Sheffield Energy Innovation Centre and Translational Energy Research Centre (TERC) conducted back-to-back comparative testing of conventional Jet A-1 and DM-XTech fuel on a Honeywell 131-9A auxiliary power unit.

Source-label note: The test reports use "LCAF" for the tested fuel. This note uses tLCAF to distinguish DM-XTech's fossil-derived transition fuel from the later biogenic eSAF objective.

All values are raw and uncorrected for atmospheric conditions. They support a direct fuel-to-fuel comparison at the tested APU operating points. The findings demonstrate lower soot-proxy emissions under these conditions. They do not by themselves establish in-flight contrail reduction or regulatory compliance.

Full test reports and supporting material are available in the due-diligence data room. Public evidence pack: https://webapp.dmxtech.co.uk/terc-evidence-pack.html

Disclosure boundary: This appendix reports the test platform, instruments, sequence and emissions outcomes only. Proprietary production chemistry and formulation details are excluded.