Brookfield to Invest Up to $1.1 Billion in Infinium to Scale Ultra-Low Carbon eFuels

Rhea-AI Summary

Brookfield (NYSE: BAM) agreed to invest up to $1.1 billion in Infinium to scale production of ultra-low carbon eFuels, including eSAF, eDiesel and eNaphtha. Brookfield will commit more than $200 million toward Infinium and Project Roadrunner in West Texas and up to an additional $850 million for other projects subject to pre-agreed metrics, via the Brookfield Global Transition Fund vintage one. Brookfield will lead Infinium's Series C preferred stock offering.

Infinium says Project Roadrunner will supply commercial eSAF volumes starting in 2026 under a strategic offtake with American Airlines; Breakthrough Energy Catalyst previously made a $75 million conditional commitment to Roadrunner.

Positive

• $1.1B capital commitment to scale eFuels
• Brookfield committed >$200M to Project Roadrunner
• Brookfield to lead Series C preferred offering
• American Airlines offtake for eSAF starting 2026
• Project Roadrunner will produce eSAF, eDiesel, eNaphtha

Negative

• Brookfield follow-on funding conditional on pre-agreed metrics
• Breakthrough's $75M commitment is described as conditional

Insights

Energy-transition private markets analyst

Brookfield commits up to $1.1 billion to scale Infinium's ultra-low carbon eFuels, accelerating commercial eSAF supply.

Brookfield will invest more than $200 million into Project Roadrunner and up to an additional $850 million for global deployments, and will lead Infinium's Series C Preferred Stock offering. This funding directly finances expansion of production capacity for eSAF, eDiesel, and eNaphtha, which are described as drop-in replacements for conventional fuels.

Key dependencies include Project Roadrunner reaching commercial production and the pre-agreed metrics tied to follow-on capital. The deal already ties a concrete offtake with American Airlines for volumes starting in 2026, which reduces execution risk for initial volumes but leaves remaining capacity subject to additional offtakes and milestone delivery.

Watch near-term milestones: capital deployment to Project Roadrunner, satisfaction of the investment metrics that unlock follow-on funding, and public confirmation of production timelines and offtake schedules over the next 12–24 months.

New investments secured for Infinium and company's Project Roadrunner production plant to accelerate availability of sustainable aviation fuel

SACRAMENTO, Calif., Sept. 10, 2024 /PRNewswire/ -- Infinium, the world's first producer of commercially available ultra-low carbon eFuels, and Brookfield Asset Management (NYSE: BAM, TSX: BAM) ("Brookfield") today 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 today's conventional fuels.

Brookfield to invest up to $1.1 billion in Infinium to advance eFuels production.

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.

"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."

About Infinium

Infinium is an electrofuels provider on a mission to decarbonize the world. Electrofuels, also known as eFuels, are a new class of synthetic fuels created using renewable power and waste carbon dioxide, not petroleum or resources that compete with food. Infinium eFuels such as eSAF jet fuel and eDiesel can be dropped into existing planes, trucks and ships, significantly reducing harmful carbon dioxide emissions compared to fossil-based fuels. In addition to helping the transport industry meet carbon reduction goals, Infinium eNaphtha is a lower carbon alternative for chemical processing, including plastics production. Learn why Amazon, American Airlines, Citi and other leading cleantech innovators have chosen Infinium at www.infiniumco.com.

About Brookfield

Brookfield Asset Management (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately $1 trillion of assets under management. We invest client capital for the long-term with a focus on real assets and essential service businesses that form the backbone of the global economy. We offer a range of alternative investment products to investors around the world — including public and private pension plans, endowments and foundations, sovereign wealth funds, financial institutions, insurance companies and private wealth investors.

Brookfield operates Brookfield Renewable Partners (NYSE: BEP, TSX: BEP), one of the world's largest publicly platforms for renewable power and sustainable solutions. Our renewable power portfolio totals over 34,000 megawatts and our development pipeline stands at approximately 200,000 megawatts. Our portfolio of sustainable solutions assets includes our investments in Westinghouse (a leading global nuclear services business) and a utility and independent power producer with operations in the Caribbean and Latin America, as well as both operating assets and a development pipeline of carbon capture and storage capacity, agricultural renewable natural gas and materials recycling.

View original content to download multimedia:https://www.prnewswire.com/news-releases/brookfield-to-invest-up-to-1-1-billion-in-infinium-to-scale-ultra-low-carbon-efuels-302243377.html

SOURCE Infinium

FAQ

How much is Brookfield investing in Infinium (NYSE: BAM) and Project Roadrunner?

Brookfield committed up to $1.1 billion total, including more than $200 million to Infinium and Project Roadrunner and up to $850 million for other projects subject to metrics.

When will Infinium's Project Roadrunner supply eSAF to American Airlines?

Infinium says American Airlines will purchase commercial volumes of eSAF produced by Project Roadrunner starting in 2026.

What fuels will Project Roadrunner produce and which sectors do they target?

Project Roadrunner will produce eSAF for aviation plus eDiesel for long-haul trucking/maritime and eNaphtha for plastics manufacturing.

Is Brookfield's funding for Infinium guaranteed?

Brookfield's investment includes initial commitments and up to $850 million of follow-on funding that are subject to pre-agreed performance metrics.

What other investor support does Project Roadrunner have?

Breakthrough Energy Catalyst previously made a $75 million conditional commitment to Project Roadrunner.