DM-XTech has identified key risks and implemented comprehensive mitigation strategies to ensure project success:
Risk: Deeply hydrotreated fuel could affect lubricity or seals
Mitigation: Proprietary PLI additive (proven in tests) ensures seal integrity and proper lubrication despite ultra-low sulphur content
Extensive testing with OEMs ongoing to validate performance
Risk: Refinery buy/upgrade complexity and timeline delays
Mitigation: Partner with experienced engineers, implement phased upgrades, engage government to ease approvals
Lindsey refinery acquisition planned for early 2026 with support from government
Risk: Airlines' adoption uncertainty and contrail credit recognition
Mitigation: Competitive pricing (dLCAF ~10-15% costlier than regular jet vs. SAF's 200-300% premium), offering ESG value
Letters of intent in progress with first-adopter airlines
Risk: Future rules favoring only bio/e-fuels, leaving dLCAF behind
Mitigation: Ensure dLCAF qualifies for CORSIA and push recognition of contrail benefits in policy
Maintain ability to pivot (e.g., blend bio-feedstock later) if needed
Risk: Oil price volatility affecting feedstock costs
Mitigation: Hedging strategies and fixed-price crude contracts to lock in costs
Strong profit margins provide natural buffer against price fluctuations
Risk: Uncertain regulatory acceptance or showstoppers
Mitigation: Proactive approach to certifications and permits, aligning with existing jet fuel specs
Government is supportive of the project as it emphasizes job preservation and climate goals
DM-XTech has developed a comprehensive risk mitigation strategy that addresses all material concerns while maintaining project momentum