Low-carbon transition | October 4, 2022

LanzaTech secures $550 million carbon recycling partnership with Brookfield Renewable

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, October 4 — Chicago-based LanzaTech uses microbes to convert industrial carbon emissions into sustainable fuel and inputs for textile, rubber and packaging. Earlier this year, the company agreed to a $1.8 billion merger with AMCI Acquisition Corp. II, a special purpose acquisition company, or SPAC.

Brookfield Renewable, through its $15 billion Global Transition Fund, will invest an initial $500 million in LanzaTech to ramp production in Europe and North America. Brookfield will invest another $500 million if LanzaTech hits milestones for carbon capture and conversion. Another $50 million in equity will support LanzaTech corporate development.

“LanzaTech’s technology provides a new way to decarbonize hard-to-abate sectors across the economy,” said Brookfield’s Natalie Adomait. “Each additional plant has the potential to keep the equivalent of around 100,000 tons of carbon from the atmosphere each year.” 

Commercial footprint

LanzaTech’s first two commercial plants have produced more than 30 million gallons of ethanol, offsetting the release of over 150,000 metric tons of CO2 into the atmosphere. The company has plants under construction to make carbon-based products for Unilever, Lululemon, Zara and L’Oreal Paris. LanzaTech has raised more than $1 billion.