New York: Brookfield Asset Management Ltd is investing up to US$1.1bil in the low-carbon e-fuels startup Infinium.
The Canadian asset manager agreed to invest more than US$200mil into Infinium’s Project Roadrunner that’s under development in West Texas and up to US$850mil in other Infinium projects around the world, according to a statement.
The deal marks Brookfield’s first direct investment in sustainable aviation fuel.
California-based Infinium produces its fuels through a process that combines water, waste carbon dioxide and renewable energy.
They can be used in place of fossil fuels in planes, ships, trucks and manufacturing.
While climate-tech investing dropped significantly from its recent highs in 2023, sustainable aviation fuel startups have continued to rake in funding as demand for the fuel has increased.
In the first half of 2024, Infinium and its competitor LanzaJet Inc both raised significant venture funding to finance their production facilities.
The interest in sustainable aviation fuel, or SAF, is in large part driven by policy support, particularly in the European Union (EU) and the United States, which have stimulated demand.
The EU now mandates that a certain percentage of aircraft fuel be sustainable. In the United States, an incentive in the Inflation Reduction Act helps subsidise SAF production.
Corporate commitments have increased, too, with companies including United Airlines and Delta Airlines committing to purchase the fuel. — Bloomberg
