Brookfield has agreed to invest up to $600 million in ACME Cleantech Ventures to support the development and construction of ACME’s pipeline of green molecule projects across India and the Middle East.
The investment represents Brookfield’s entry into the green molecules sector in the region and combines Brookfield’s global investment scale and institutional capital with ACME’s development and operating capabilities.
The financing will support projects involving green ammonia and other green molecules as ACME seeks to build a larger platform serving customers across Asia, Europe and other international markets.
Green molecules generally refer to fuels and chemical products produced using lower-carbon or renewable-energy processes, with green hydrogen and green ammonia becoming increasingly important potential tools for decarbonizing industries where direct electrification can be difficult.
ACME is developing green molecule projects intended to serve those markets, particularly as industrial companies, shipping operators and other major energy users look for alternatives to fossil fuel-based feedstocks and fuels.
According to ACME’s announcement, Brookfield’s investment will support project development in India and the Middle East and will be backed by Brookfield’s Global Transition Fund.
The partnership could give ACME additional financial resources to move a larger pipeline of capital-intensive projects from development into construction.
Green ammonia projects can require substantial upfront investment across renewable-power generation, electrolyzers, hydrogen production, ammonia synthesis, storage and export infrastructure. Access to large pools of institutional capital can therefore be an important factor in bringing projects to commercial scale.
ACME said the partnership is also intended to strengthen energy security while supporting cost-competitive decarbonization.
For Brookfield, the transaction expands its energy-transition investment strategy into a segment positioned between renewable electricity generation and the decarbonization of industrial fuels and chemical feedstocks.
ACME plans to use the investment to advance what it describes as a world-class portfolio of green ammonia and other green molecule projects while building a global platform capable of supplying customers in Asia, Europe and additional markets.
KEY QUOTES:
“Brookfield’s investment in our green molecules business is a strong endorsement of ACME’s development and operating capabilities as well as the scale of the opportunity ahead.”
Manoj Upadhyay, Chairman of ACME Group
