Chicago-based LanzaTech, which uses microbes to convert industrial carbon emissions into sustainable fuel as well as textile, rubber and packaging, went public last year through a SPAC merger. Since then, the woman-led company has been raising capital to ramp up global production and meet demand from large customers “interested in the waste-derived products and fuels that our platform produces at scale,” said LanzaTech’s Jennifer Holmgren.
“We are successfully converting a wide-range of carbon-rich waste feedstocks such as municipal waste, agriculture and biomass waste, and industrial off-gases into valuable ethanol today.”
In India last week, LanzaTech struck a deal with Indian energy transition company Jakson Green to provide NTPC Limited, a New Delhi-based power generation utility company, for its technology that converts carbon and green hydrogen into ethanol fuel, chemicals and raw materials. The working capital from Carbon Direct will help LanzaTech roll out carbon recycling product lines. Carbon Direct could invest an additional $110 million in convertible notes in the company.
Quarterly reports
During this year’s second quarter, LanzaTech increased its ownership stake to 37%, from 23%, in LanzaJet, a subsidiary that converts low-carbon ethanol into sustainable aviation fuel.
LanzaTech also launched CirculAir, a joint commercial product with LanzaJet, to convert a wide range of waste feedstocks, carbon and hydrogen, and clean energy, into green aviation fuel. LanzaJet said CarbonSmart, its ethanol-based products business, made its “first pure-play ethanol fuel sales” after securing proper licensing, partners and supply chain infrastructure.
Carbon recycling partners
Brookfield Renewable, through its $15 billion Global Transition Fund, invested $550 million in LanzaTech two years ago, with an option to invest an additional $500 million should the company reach agreed-upon carbon capture and conversion targets. As part of the partnership, Luxembourg steel manufacturer ArcelorMittal is using LanzaTech’s carbon recycling technology to build a “Steelanol” facility that captures carbon waste gasses from steelmaking and converts them into ethanol.
LanzaTech has partnerships with Lululemon, Zara, Unilever and L’Oreal Paris, among other brands, to manufacture products made from recycled carbon.
