Brookfield Asset Management 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 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.

(Reporting by Vallari Srivastava in Bengaluru; Editing by Vijay Kishore)