Three months after announcing a partnership with the Chinese Academy of Sciences (CAS), LanzaTech has ironed out an agreement with China's largest steel and iron conglomerate. The New Zealand-based company now has a partnership letter of intent with Baosteel and a three-way research alliance between LanzaTech, Baosteel and CAS's Bureau of Life Science and Technology.
The goal is to commercialize LanzaTech's technology to produce fuel ethanol from steel mill off gases. Baosteel and LanzaTech plan to build a demonstration plant at one of Baosteel's steel mills, which is expected to be operational in the second half of 2011. The companies will then work to scale the plant up to be the first fully commercial plant in China. "Baosteel has been aware of the steel industry's trend towards new low carbon technologies in the field of sustainability," said Zhou Zhu Ping, vice president of Baosteel. "LanzaTech's technology will enable Baosteel to move further in this new direction by converting steel mill off gases to ethanol."
A free trade agreement between New Zealand and China allows LanzaTech to secure the necessary partnerships to commercialize their technology. "China is committed to reducing its carbon footprint and reducing its need for imported fuel, while continuing to increase its industrial output," said Sean Simpson, cofounder and chief scientist for LanzaTech." As one of China's industry leaders and pioneers in world class clean steel technologies, Baosteel strives to work with new technologies that support its environmentally conscious operating strategy."
LanzaTech's proprietary gas fermentation technology can be retrofitted to industrial facilities and utilizes the feedstock of the carbon monoxide component of waste flue gases. The company has a pilot plant located at New Zealand Steel in Glenbrook, New Zealand, that has produced ethanol since 2008. Founded in 2005 to develop and commercialize that technology, LanzaTech has expanded its process development to produce fuels from either industrial waste gas or biomass syngas.
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