LanzaTech has signed a memorandum of understanding with Posco (NYSE: PKX), one of the largest steel producers in the world, covering the implementation of its gas fermentation technology to convert the steel maker’s flue gases to ethanol and other value added products.
LanzaTech uses non food renewable resources to produce ethanol and also 2,3-Butanediol (2,3-BD), a key building block used to make polymers, plastics and hydrocarbon fuels. It has investment from K1W1 (New Zealand), Khosla Ventures (US) and Qiming Ventures (China) as well as funding from the New Zealand and US governments.
Posco is a Korean conglomerate with interests in steel, power, energy,
engineering and construction. Its crude steel production for 2010 was
33.7 million tons.
No timelines, projects goals or budget details were provided. However, LanzaTech chief executive Jennifer Holmgren says her team is "delighted" to have the opportunity to partner with Posco, which has a research and development budget of 1.7% of consolidated revenue–an amount that equated to US$476 million in 2010.
“The proposed licensing by Posco of our patented microbe and fermentation process fits with our growth strategy in Asia,” Holmgren said.
Noi-Ha Cho, chief technology officer of Posco, says gas fermentation technology creates more value from by-products of the steel process. “It provides a new way to produce green energy and it will also contribute to reducing CO2 in steel plants,” he said.
LanzaTech, founded in 2005, has offices in New Zealand, the United States and China.
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