{"id":6129,"date":"2024-09-26T19:08:24","date_gmt":"2024-09-26T18:08:24","guid":{"rendered":"https:\/\/www.greenairnews.com\/?p=6129"},"modified":"2024-12-05T19:29:02","modified_gmt":"2024-12-05T19:29:02","slug":"infinium-and-twelve-raise-a-total-of-up-to-1-7-billion-towards-esaf-production","status":"publish","type":"post","link":"https:\/\/www.greenairnews.com\/?p=6129","title":{"rendered":"Infinium and Twelve raise a total of up to $1.7 billion towards eSAF production"},"content":{"rendered":"\n

Two Californian e-fuel startups, Infinium and Twelve, have received a joint total of up to $1.7 billion in funding and investment to help accelerate production and availability of sustainable aviation fuel. Brookfield Asset Management has committed to invest more than $200 million in Infinium\u2019s Project Roadrunner that is under development in West Texas and up to an additional $850 million for deployment of other Infinium eFuels projects globally, all subject to pre-agreed metrics. This marks Brookfield\u2019s first direct investment in SAF and the investor will also serve as lead in Infinium\u2019s Series C Preferred Stock Offering. Twelve has received $645 million in funding, which includes $400 million in project equity led by TPG Rise Climate, $200 million in Series C financing and an additional $45 million in credit facilities from funders in the renewable energy sector.<\/strong><\/p>\n\n\n\n

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Infinium<\/a> produces eSAF through a proprietary process that combines water, waste CO2 and renewable energy to produce drop-in eSAF as well as eDiesel and eNaphtha. The company recently announced a strategic deal with American Airlines, in which American will purchase commercial volumes of its eSAF starting in 2026 produced by Project Roadrunner.<\/p>\n\n\n\n

\u201cBrookfield 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,\u201d said Infinium CEO Robert Schuetzle.<\/p>\n\n\n\n

\u201cOur Project Pathfinder site was the first to bring commercial volumes of e-fuels to market and Project Roadrunner brings additional volumes to scale global supplies. As our airline partners continue to push for more SAF and decarbonisation options, Infinium remains committed to accelerating production to help meet those demands.\u201d<\/p>\n\n\n\n

Brookfield<\/a> joins existing backer Breakthrough Energy Catalyst, which previously committed $75 million in funding for Project Roadrunner.<\/p>\n\n\n\n

\u201cOur investment is structured to provide the capital Infinium needs to accelerate the production of SAF to meet the growing demand from corporate customers while generating attractive risk-adjusted returns for us,\u201d explained Jehangir Vevaina, Managing Partner at Brookfield, which has around $1 trillion of assets under management. \u201cIn addition to Roadrunner, Infinium has a large pipeline of well-positioned projects to help meet the demand for the structurally short e-fuels market, and we are looking forward to the opportunity to participate in the development of further e-fuel projects through follow-on investments.\u201d<\/p>\n\n\n\n

Infinium claims Project Pathfinder in Corpus Christi, Texas, is the world\u2019s first commercial-scale facility making drop-in ready e-fuels for heavy transportation applications and chemical processes, and is the first in North America to produce e-fuels that have received ISCC PLUS certification. Pathfinder integrates Infinium\u2019s novel fuel production technology using patented catalysts with on-site electrolysers, a state-of-the-art laboratory, logistics and delivery mechanics to produce, validate and distribute e-fuels in what it describes as fewer steps than others in the industry.<\/p>\n\n\n\n

The company says it has more than a dozen additional projects under development across the United States, the EU, Japan and Australia.<\/p>\n\n\n\n

Meanwhile, funding raised by Twelve<\/a> will be used towards the completion of the company\u2019s inaugural AirPlant One eSAF facility located in Moses Lake, Washington, which is expected to begin production in 2025. Twelve\u2019s patented technology will be used to produce SAF derived from biogenic CO2, water and renewable energy sources, which achieves claimed lifecycle emissions up to 90% lower than conventional fossil jet fuel. Twelve recently raised $45 million in total loans from two lenders \u2013 the first a $25 million construction loan from clean energy investment firm Fundamental Renewables, the other a $20 million green loan from multinational bank SMBC.<\/p>\n\n\n\n

TPG Rise Climate<\/a>, a $7.3 billion climate impact fund, has now committed up to $400 million in project equity financing to support the development of future AirPlants, which will supply Twelve\u2019s E-Jet fuel to customers like Alaska Airlines and IAG, parent company of British Airways.<\/p>\n\n\n\n

\u201cWe are drawn to companies and founders that have developed and proven unique solutions to complex problems,\u201d said Jonathan Garfinkel, Managing Partner at TPG Rise Climate. \u201cTwelve is a clear leader in CO2 conversion technology, which is a core part of the power-to-liquids technology stack, and the process we believe represents the long-term scalable solution for SAF production.\u201d<\/p>\n\n\n\n

TPG is leading Twelve\u2019s $200 million Series C round alongside Capricorn Investment Group and Pulse Fund. A number of new and existing investors participated in the round, including Microsoft\u2019s Climate Innovation Fund and\u00a0Alaska Airlines\u2019 investment arm, Alaska Star Ventures.<\/p>\n\n\n\n

\u201cWe are excited to be a part of this round of forward-looking funders to make a more sustainable future for aviation possible,\u201d said Diana Birkett Rakow, SVP Public Affairs and Sustainability at Alaska Airlines. \u201cOver the last several years we have appreciated getting to know the team at Twelve. Together we are building a multi-level partnership to expand supply, mature the market for SAF and to soon use their E-Jet fuel in our operations.\u201d<\/p>\n\n\n\n

Responded Nicholas Flanders, CEO at Twelve: \u201cOur financing strategy has been to build a comprehensive capital stack that enables us to deliver product to customers at scale while continually driving down costs. We\u2019re proud to work with visionary financing partners and collaborators who share our commitment to deploying first of a kind technologies that address climate change at scale.\u201d<\/p>\n\n\n\n

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Photo: American Airlines expects to purchase commercial volumes of Infinium’s eSAF starting in 2026<\/strong> <\/p>\n\n\n\n

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