Brookfield to invest up to $600 million in ACME green fuels business

US alternative asset manager Brookfield will invest up to $600 million in ACME Cleantech Ventures to support the development and construction of green ammonia and green methanol projects in India, the companies said on Thursday.

The investment will be made through Brookfield’s Global Transition Fund strategy and marks the asset manager’s entry into the region’s low-carbon fuels sector.

ACME said the funding will support an advanced pipeline of projects in India and Oman as the company expands its green ammonia and other low-carbon fuel production for domestic and export markets.

ACME builds green fuel customer base

ACME has secured supply agreements with international and Indian customers, including Norway-based Yara International, Japan’s IHI Corporation and Mitsubishi Gas Chemical.

The investment is expected to support the development of projects targeting markets where green fuels can be used as alternatives to fossil-based energy.

Green ammonia and green methanol are being developed as lower-carbon fuel options for sectors where direct electrification can be difficult. Shipping, chemicals and other emissions-intensive industries are among the potential end-use markets.

Brookfield expands clean energy exposure

Brookfield already has a significant presence in India’s renewable energy sector, with a portfolio of approximately 50 GW of operating and pipeline wind and solar assets.

The ACME transaction extends Brookfield’s exposure beyond renewable power generation into the production of fuels using renewable electricity. The investment comes as demand for low-carbon fuels is expected to increase as industries seek alternatives to fossil fuels to meet emissions-reduction and decarbonisation targets.