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13 Sep 2024

Brookfield Agrees to Invest up to $1.1bn in Infinium’s Efuels Platform

13 Sep 2024  by nsenergybusiness   

Recently, Infinium announced a strategic agreement with American Airlines. (Credit: Quintin Soloviev/ Wikipedia (Creative Commons))

Infinium, the world’s first producer of commercially available ultra-low carbon eFuels, and Brookfield Asset Management have entered into a strategic funding partnership aimed at accelerating the expansion of Infinium’s eFuels platform. Infinium eFuels, which include eSAF—a next-generation sustainable aviation fuel—are capable of reducing lifecycle greenhouse gas emissions by approximately 90% or more when compared to conventional fuels.

As part of the agreement, Brookfield has committed to investing more than $200m in Infinium and its Project Roadrunner, currently under development in West Texas. An additional investment of up to $850m has been allocated for the deployment of other Infinium eFuels projects globally, subject to pre-agreed performance metrics.

The investment will be made through the first vintage of the Brookfield Global Transition Fund (BGTF I) and marks Brookfield’s first direct involvement in sustainable aviation fuel. Furthermore, Brookfield will act as the lead investor in Infinium’s Series C Preferred Stock offering.

Infinium CEO Robert Schuetzle said: “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.

“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 decarbonisation options, Infinium remains committed to accelerating production to help meet those demands.”

Infinium eSAF represents the latest generation of sustainable aviation fuel, produced using a proprietary process that combines water, waste CO2, and renewable energy to create ultra-low carbon fuels, including eSAF, eDiesel, and eNaphtha. These eFuels are “drop-in” replacements for traditional fossil-based fuels, allowing them to be used in existing engines and infrastructure across planes, ships, trucks, and manufacturing processes without requiring modifications.

Infinium recently announced a strategic agreement with American Airlines, under which American will begin purchasing commercial quantities of Infinium eSAF from Project Roadrunner starting in 2026. This agreement secures offtake for Project Roadrunner and supports American Airlines in its efforts to decarbonise its fleet while working towards ambitious sustainability targets.

In addition to eSAF, the Project Roadrunner site will produce eNaphtha, which can be utilised in plastics manufacturing, and eDiesel, which is suitable for long-haul trucking and maritime applications—sectors that are more difficult to electrify. Infinium is actively advancing a number of offtake agreements for the remaining capacity of the plant, with announcements expected in the near future.

Brookfield now joins Breakthrough Energy Catalyst as a backer of Project Roadrunner, with Breakthrough Energy Catalyst having previously committed $75m in funding for Infinium’s initiative. The Breakthrough team has played a pivotal role in advancing Project Roadrunner, offering both support and expertise to help Infinium develop an investable project structure.

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SAF

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