Waste Gas to Fuel & Chemicals Specialist Secures $56 Million

24 January 2012

LanzaTech, a specialist in producing low carbon fuel and chemicals from waste gases has closed its Series C round with new investment totalling $55.8 million led by the Malaysian Life Sciences Capital Fund.

According to the company - founded in New Zealand and now headquartered in Roselle, Illinois - it has developed a proprietary fermentation process to convert gases, including industrial waste gases and gas derived from any biomass source, into fuels and chemical.

The new investors include Petronas Technology Ventures, the venture arm of Malaysia's national oil company, and Dialog Group, a leading Malaysian integrated specialist technical services provider to the oil, gas and petrochemical industry.

In addition existing investors Khosla Ventures, Qiming Venture Partners and K1W1 also participated in the round.

Dr. Jennifer Holmgren, chief executive of LanzaTech, explained that the investments will accelerate the development of next generation integrated biorefineries using the LanzaTech technology platform for the production of sustainable low carbon chemicals as well as fuels.

"The size of this round and the quality of the new and returning investors is a strong validation of not only our technology, but the unparalleled opportunity for LanzaTech to be a global leader in biofuels and biochemicals markets," added Holmgren.

To date, the company has raised more than $85 million.

The story so far

LanzaTech said that its fuel strategy is already well developed through technology and strategic and commercial partnerships with global entities, including eight Fortune 500 global companies.

In China, development of a demonstration plant to convert waste flue gas from steel manufacturing at a Baosteel (China's largest steel manufacturer) plant is mechanically complete, and expected to begin production of ethanol later this year, according to the company. It is also working with Capital Steel (China's fourth largest steel company) on a similar project.

In India, LanzaTech said that it is working with Indian Oil and Jindal Power and Steel Limited on a facility to convert industrial waste gases into ethanol. The company has also has partnered with Concord Blue on a project to convert municipal solid waste into ethanol throughout India.

In the U.S. the firm is developing a facility to produce renewable fuels and chemicals from regionally sourced waste wood in Soperton, Georgia.

In addition, the company said that it is working with the U.S. Department of Energy, the Department of Defense (Defense Advanced Research Projects Agency ? DARPA) and the Federal Aviation Administration, to adapt its technology to produce aviation fuels for commercial and military use.


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