Woodside Energy and LanzaTech NZ Inc., a U.S.-based carbon capture and transformation company, have announced a strategic collaboration with the signing of a strategic framework agreement.

Under the strategic framework agreement Woodside will, in collaboration with LanzaTech and subject to a positive final investment decision, design, construct, own, maintain and operate pilot facilities relating to LanzaTech’s technologies. The strategic framework agreement also allows Woodside and LanzaTech to explore opportunities for the potential commercial scale-up of LanzaTech’s technology, which seeks to convert greenhouse gas emissions into new products.

In conjunction, Woodside has entered into a subscription agreement for a US$50 million investment in the common stock private investment in public equity (PIPE) of AMCI Acquisition Corp. II (AMCI), with which LanzaTech is expected to merge in a previously announced business combination transaction. The strategic framework agreement and Woodside’s PIPE investment are conditional on closing of the proposed business combination between LanzaTech and AMCI. Upon closing, the combined company is expected to trade on Nasdaq under the ticker symbol “LNZA”.

Woodside’s investment is a major milestone for the LanzaTech and AMCI business combination. The collaboration with Woodside is expected to unlock significant value for LanzaTech, allowing LanzaTech to expand the applications of its technology to different feedstocks and rethink waste management systems.

Woodside and LanzaTech expect to further collaborate to explore and develop additional products from greenhouse gas emissions.

Woodside CEO,Meg O’Neill said, “As the energy transition advances, we anticipate increasing demand for carbon capture utilization and storage (CCUS). LanzaTech have an innovative approach towards not just reducing greenhouse gas emissions but transforming them into useful products. Their skillset in the fields of synthetic biology, bioinformatics, artificial intelligence, and machine learning coupled with engineering offers a potential opportunity to realize this aspiration. This is a step forward in achieving our goal of building a new energy portfolio centered on profitably investing in the products and services to support our customers’ chosen decarbonization pathways.”

“We are excited to be part of Woodside Energy’s journey as they build a portfolio of lower-carbon services,” said LanzaTech CEO Dr. Jennifer Holmgren.

“Conversion of greenhouse gases into value added products unlocks multiple benefits for our environment. With both this collaboration agreement and new investment into the PIPE, we see the potential to work together to reduce emissions and repurpose carbon into useful products.”