Brookfield Asset Management Inc (BAM) shares are trading lower on Tuesday following the announcement of a strategic funding partnership with Infinium. This partnership will see Brookfield invest up to $1.1 billion to accelerate the production of sustainable aviation fuels (eFuels).
Under the terms of the agreement, Brookfield will contribute over $200 million to Infinium and its Project Roadrunner in West Texas. This investment will be followed by an additional $850 million for other global Infinium eFuels projects, contingent on pre-agreed performance metrics.
The investment, channeled through Brookfield’s Global Transition Fund (BGTF I), marks the company’s first direct investment in sustainable aviation fuel. It also positions Brookfield as the lead investor in Infinium’s Series C Preferred Stock offering.
Infinium’s recent strategic deal with American Airlines adds further weight to this partnership. American Airlines will begin purchasing commercial volumes of Infinium’s eSAF (sustainable aviation fuel) from Project Roadrunner in 2026.
Jehangir Vevaina, Managing Partner at Brookfield, highlighted the strategic nature of this investment, stating, “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.”
He further added, “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.”
In June, Brookfield Asset Management secured a 53.12% stake in France’s Neoen, demonstrating its continued focus on sustainable energy investments. This acquisition valued Neoen at EUR 6.1 billion.
BAM shares were down 0.57% at $41.98 at the close of trading on Tuesday.
The move by Brookfield Asset Management highlights the increasing focus on sustainable investments within the business community. As demand for sustainable aviation fuel continues to grow, this partnership positions Brookfield as a key player in the transition towards a more environmentally friendly aviation sector.
