Brookfield Asset Management is set to venture into e-fuels, committing to invest over $1bn into start-up company Infinium. The commitment is set to accelerate the California company's e-fuels platform.
The deal terms consist of over $200 million in Infinium and the start-up's project roadrunner that is in development in west Texas and up to an additional $850 million for deployment of other Infinium e-fuels projects.
Infinium e-fuels includes its 'next generation' sustainable aviation fuel (SAF), eSAF. The fuel is produced through a proprietary process that combines water, waste CO2 and renewable energy to produce 'ultra-low' carbon fuels.
The investment will be made by the first vintage of the Brookfield Global Transition Fund 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.
"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," commented Infinium CEO Robert Schuetzle.
Brookfield managing partner Jehangir Vevaina said: "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."
The roadrunner project was recently backed by Breakthrough Energy Catalyst with a $75 million conditional commitment.