LanzaTech, a producer of low-carbon fuels and chemicals from waste gases, has closed its Series C round with new investment totaling US $55.8 million led by the Malaysian Life Sciences Capital Fund. New investors include PETRONAS Technology Ventures Sdn Bhd, the venture arm of PETRONAS, the national oil company of Malaysia, and Dialog Group, a leading Malaysian integrated specialist technical services provider to the oil, gas and petrochemical industry.
Existing investors Khosla Ventures, Qiming Venture Partners and K1W1 also participated in the round. To date, the company has raised more than $85 million.
Dr. Jennifer Holmgren, chief executive of LanzaTech, said this funding will accelerate the development of next generation integrated biorefineries using the LanzaTech technology platform for the production of sustainable low carbon chemicals as well as fuels.
“The size of this round and the quality of the new and returning investors is a strong validation of not only our technology, but the unparalleled opportunity for LanzaTech to be a global leader in biofuels and biochemicals markets,” Dr. Holmgren said.
LanzaTech uses a proprietary fermentation process to convert gases (including industrial waste gases and gas derived from any biomass source) into fuels and chemicals.
Roger Wyse, Co-Chairman of Malaysian Life Sciences Capital Fund, believes the company has nearly limitless potential.
“LanzaTech’s unique approach to taking a waste stream and converting it into a valuable and needed commodity will help address the dual challenge of energy demand and climate change without compromising the use of land and water resources.”
LanzaTech’s fuel strategy is already well developed through technology, strategic and commercial partnerships with global entities, including eight Fortune 500 global companies. In China, development of a demonstration plant to convert waste flue gas from steel manufacturing at a Baosteel (China’s largest steel manufacturer) plant is mechanically complete, and expected to begin production of ethanol later this year. The company is also working with Capital Steel (China’s fourth largest steel company) on a similar project.
In India, LanzaTech is working with Indian Oil and Jindal Power and Steel Limited on a facility to convert industrial waste gases into ethanol. It also has partnered with Concord Blue on a project to convert municipal solid waste into ethanol throughout India.
“Biofuels will contribute to a significant portion of the energy supply in the future,” said Mr. Chan Yew Kai, President and Chief Operating Officer of Dialog Group. “LanzaTech’s environmentally friendly fermentation technology using microbes to convert industrial waste gases to biofuel and other chemical products provides DIALOG Group the ideal platform to be part of this exciting business sector.”
Haida Shenny Hazri, CEO of PETRONAS Technology Ventures Sdn Bhd, said that the investment made by PETRONAS provides a platform for PETRONAS to pursue the integration of LanzaTech’s technology on converting waste gases with PETRONAS’ operations.