Friday, November 22, 2024

Brookfield to Invest $1.1B in Infinium for eFuels

Infinium, the world’s first producer of commercially available ultra-low carbon eFuels, and Brookfield Asset Management announced a strategic funding partnership to accelerate the growth of Infinium’s eFuels platform. Infinium eFuels—which includes eSAF, a next generation sustainable aviation fuel—can reduce lifecycle greenhouse gas emissions by approximately 90% or more compared to conventional fuels.

Under the terms of the deal, Brookfield has committed to invest more than $200 million in Infinium and Infinium’s Project Roadrunner that is under development in West Texas and up to an additional $850 million for deployment of other Infinium eFuels projects globally, all subject to pre-agreed metrics. The investment will be made by the first vintage of the Brookfield Global Transition Fund (“BGTF I”) and marks Brookfield’s first direct investment in sustainable aviation fuel. Brookfield will also serve as lead in Infinium’s Series C Preferred Stock offering.

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“Brookfield is a tremendous partner, and we are thrilled to secure this additional capital as we scale eSAF production to meet the overwhelming demand from the aviation industry,” stated Infinium CEO Robert Schuetzle. “Our Project Pathfinder site was the first to bring commercial volumes of eFuels to market, and Project Roadrunner brings additional volumes of eFuels to scale global supplies. As our airline partners continue to push for more SAF and decarbonization options, Infinium remains committed to accelerating production to help meet those demands.”

Infinium eSAF is the newest generation of sustainable aviation fuel and is produced through a proprietary process that combines water, waste CO2 and renewable energy to produce ultra-low carbon fuels including eSAF, eDiesel and eNaphtha. eFuels are “drop-in” replacements for today’s fossil-based fuels and can be used without changes to engines or infrastructure in planes, ships, trucks and manufacturing processes.

Infinium recently announced a strategic deal with American Airlines, in which American will purchase commercial volumes of Infinium eSAF starting in 2026 produced by Project Roadrunner. The agreement helps secure offtake for Project Roadrunner and fuel for American to help decarbonize its airplane fleet while meeting its aggressive sustainability goals.

The Project Roadrunner site will also produce eNaphtha, which can be used in plastics manufacturing, and eDiesel, which can be used in long-haul trucking and maritime applications—sectors which are harder to electrify. Infinium is progressing a number of offtake contracts for the remainder of the plant’s capacity that it expects to announce in due course.

“We are very excited to be partnering with Infinium, a leader in the development and production of ultra-low carbon intensity drop in fuel alternatives. Our investment is structured to provide the capital Infinium needs to accelerate the production of sustainable aviation fuels to meet the growing demand from corporate customers while generating attractive risk-adjusted returns for Brookfield,” said Jehangir Vevaina, Managing Partner at Brookfield. “In addition to Roadrunner, Infinium has a large pipeline of well positioned projects to help meet the demand for the structurally short eFuels market, and we are looking forward to the opportunity to participate in the development of further eFuels projects through follow-on investments.”

Brookfield joins existing Roadrunner backer Breakthrough Energy Catalyst, who previously made a $75 million conditional commitment to Infinium’s Project Roadrunner. The Breakthrough team has served as a driving force in supporting Roadrunner’s progress and provided expertise to Infinium as they created an investable project structure.

“Our investors continue to demonstrate their confidence in Infinium and the huge potential for eFuels in the marketplace,” added Schuetzle. “The global supply chain is in desperate need of decarbonization, and solutions like eSAF are the answer.”

SOURCE: PRNewswire

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