A Sacramento clean fuel technology company is getting up to $1.1 billion in new investment.
Infinium announced the funding partnership with Brookfield Asset Management Inc. on Tuesday.
Under the terms of the deal, Brookfield (NYSE: BAM) has committed to investing more than $200 million in Infinium’s Project Roadrunner, which is under development in West Texas, and up to $850 million for future projects. Brookfield will also be the lead investor in Infinium's series C preferred stock offering.
Infinium uses electricity from renewable sources and waste carbon dioxide to make what’s called electrofuel, which is used as a replacement for fossil fuels. The e-fuels can be swapped in for conventional fuel in existing diesel and jet engines, without any modification required.
Project Roadrunner is expected to be the largest facility of its kind in North America, manufacturing e-fuels to be used for aviation, trucking and other commercial uses.
"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," Infinium CEO Robert Schuetzle said, in a news release.
Project Roadrunner has already gotten support in the form of a $75 million equity commitment from Breakthrough Energy, a group launched by Bill Gates that aims to accelerate the development of renewable energy technology.
Infinium has a deal with American Airlines Group Inc. (Nasdaq: AAL), which includes a long-term commitment for the airline to buy aviation fuel coming out of the Project Roadrunner plant starting in 2026.
Infinium has a similar deal with Amazon (Nasdaq: AMZN), which buys fuel for its delivery trucks from Infinium’s smaller Project Pathfinder plant in southeast Texas, which opened earlier this year. Infinium also has agreements to build a $570 million electrofuel plant in France, and another one in Norway.
