Sept 10 (Reuters) - Brookfield Asset Management ( BAM )
will invest up to $1.1 billion in Infinium, in a push to
accelerate the availability of low-carbon sustainable aviation
fuels (SAF), the companies said on Tuesday.
WHY IT'S IMPORTANT
Sustainable aviation fuels, which are developed by companies
such as Infinium, offer ultra-low carbon alternatives to
fossil-based fuels, which can be used as replacements in planes,
ships, trucks and manufacturing processes.
These fuels have seen a surge in investments, driven by the
U.S. Environmental Protection Agency's Renewable Fuel Standard.
Infinium, a key player, provides electrofuels or eFuels like
e-SAF and e-Diesel, produced by synthesizing captured CO2 and
hydrogen from renewable or CO2-free electricity.
e-SAF is a cleaner alternative to SAF, but its production is
limited, with few refineries and airlines committed to its use.
CONTEXT
According to the International Energy Agency, global
energy-related CO2 emissions hit a record high last year.
Scientists have stressed the need to make steep cuts in CO2
emissions from fossil fuels to limit a rise in global
temperatures and prevent runaway climate change.
BY THE NUMBERS
Brookfield will invest more than $200 million in Infinium's
Roadrunner project, which is currently under development in West
Texas.
The asset manager will invest an additional $850 million in
other e-Fuels projects owned by Infinium globally.
Brookfield will join Breakthrough Energy Catalyst, which
made a $75 million investment in Infinium's Roadrunner project
last year.
In tandem with Catalyst's investment, Infinium had singed a
deal with American Airlines ( AAL ) to sell commercial volumes
of e-SAF starting in 2026.
KEY QUOTES
"In addition to Roadrunner, Infinium has a large pipeline of
well-positioned projects to help meet the demand for the
structurally short (high demand, low supply) eFuels market,"
Brookfield said in a statement.