LanzaTech has signed a memorandum of understanding with the Korean steel giant, Posco, in a licensing deal to allow the manufacturer to get more value out of its by-products.
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. By utilising the patented microbe and fermentation process from Lanzatech, flue gases from steel production can be converted into ethanol.
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.