NYSE:BEP - Post Discussion
Post by
retiredcf on Oct 04, 2022 9:38am
More RBC
October 3, 2022
Brookfield Renewable Partners L.P.
Makes third carbon capture investment in 2022
NYSE: BEP | USD 31.30 | Sector Perform | Price Target USD 43.00
Sentiment: Neutral
Our take
We estimate that the investment in carbon recycler LanzaTech will have a neutral impact on the shares and units of Brookfield Renewable (BEP) due to the relatively small initial investment (~$100 million) for Brookfield Renewable. We note that this will be Brookfield Renewable's third investment in the carbon capture space, following investments with Entropy (Alberta) and California Resources Corporation, as the company looks to become a one-stop-shop for decarbonization solutions.
Details
• Brookfield Renewable has committed $500 million (~$100 million net to BEP) to LanzaTech NZ Inc to finance agreed upon upcoming CCS projects in North America and Europe, with the potential to increase the investment to $1 billion (~$200 million net to BEP). As part of the agreement, BEP is also investing $50 million in an instrument which converts into LanzaTech equity. The investments will be done through the $15 billion Brookfield Global Transition Fund (BEP's participation is ~20%).
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LanzaTech's technology provides a new way to decarbonize hard-to-abate sectors across the economy, and has developed technology that takes the carbon out of emissions and converts it into sustainable fuels, fabrics and other everyday products.
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According to Reuters, earlier this year, LanzaTech signed a go-public deal with a SPAC (AMCI Acquisition Corp II), that valued the company at $2.2 billion.
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