Brookfield Asset Management (NYSE:BAM) has agreed to invest up to $600 million in India’s ACME Cleantech Ventures to support the development and construction of green ammonia and green methanol projects, the companies announced on Thursday.
The investment marks Brookfield’s entry into the region’s low-carbon fuels sector and will be made through its Brookfield Global Transition Fund strategy.
ACME said the funding would support its advanced pipeline of projects in India and Oman as the company seeks to expand production of green ammonia and other low-carbon fuels for domestic and international markets.
The Indian company has already secured supply agreements with several customers, including Norway’s Yara International, Japan’s IHI Corporation and Mitsubishi Gas Chemical, as well as buyers in India.
The investment comes as industries seek lower-emission alternatives to fossil fuels to meet decarbonisation targets, supporting expectations of increased demand for green ammonia, green methanol and other low-carbon fuels.
Brookfield has an established presence in India’s renewable energy market, with a portfolio of approximately 50 gigawatts of operating and planned wind and solar assets.
The proposed investment would extend the asset manager’s activities into low-carbon fuel production, while providing ACME with funding to advance its project pipeline.
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