Brookfield’s global energy transition fund is investing up to $1.1bn (€1bn) in sustainable aviation fuel producer Infinium.
The $15bn Brookfield Global Transition Fund I (BGTF I) is investing over $200m in Infinium’s Project Roadrunner, an electrofuels (eFuels) project under development in West Texas.
The partnership with the startup also includes BGTF I making additional investments of up to $850m in other Infinium eFuels projects globally, subject to certain targets being met.
As part of the investment, Brookfield will be the lead investor in Infinium’s Series C preferred stock offering. Brookfield joins Breakthrough Energy Catalyst, an existing backer of Project Roadrunner, who previously made a conditional commitment of $75m to the project.
Infinium, the world’s first producer of commercially available ultra-low carbon eFuels, a new class of synthetic fuels created using renewable power and waste carbon dioxide, not petroleum or resources that compete with food. Infinium eSAF is the newest generation of sustainable aviation fuel.
The investment represents Brookfield’s first direct investment in sustainable aviation fuel.
Jehangir Vevaina, managing partner at Brookfield, 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.
“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.”
Robert Schuetzle, Infinium CEO, 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.”
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