One of the largest alternative asset management companies in the world is looking for the next big thing. And they’re betting it might be low carbon electrofuels.
What’s happening:
- Brookfield Asset Management (NYSE: BAM) has committed $1B USD of funding for both new and existing projects being developed by ultra low carbon fuel producer Infinium
The big idea:
- Infinium produces ultra low carbon electrofuels, which are made through a combination of waste, captured carbon dioxide and green hydrogen generated from renewable energy sources
- The electrofuels produced by Infinium are able to be used as a source of fuel for aviation, commercial vehicles and even cargo ships
Why it matters:
- Infinium is widely considered the world’s first producer of commercially available ultra low carbon electrofuels and has established multiple leading edge commercial scale projects for the production of electrofuels in the United States, Japan, Europe and Australia
Going deeper:
- Infinium produces three main types of electrofuels, including sustainable aviation fuel, diesel fuel and petroleum naphtha which is a product of processed crude oil
- Infinium currently has multiple existing partnerships for supplying sustainable aviation fuel, including a recent new deal with American Airlines (NASDAQ: AAL)
- Amazon (NASDAQ: AMZN) has also been purchasing electrofuels from Infinium in a push to decarbonize heavy commercial transportation
The intrigue:
- Brookfield has been cutting multiple new deals focused on renewable energy lately, including one of the largest renewable power agreements ever with Microsoft (NASDAQ: MSFT) to build out new solar and wind energy infrastructure across the United States and Europe
