Brookfield to Invest up to $1 Billion in LanzaTech to Build Plants that Turn Captured Carbon into Fuels & Products
Carbon capture and transformation (CCT) company LanzaTech announced today a funding partnership with clean energy investor Brookfield Renewable, aimed at financing the development of commercial scale production plants for the transformation of carbon into materials such as sustainable fuels, fabrics, packaging.
Founded in 2005, Illinois-based LanzaTech’s biology-based platform converts captured carbon into raw material commodities, that would otherwise be produced from virgin fossil resources. LanzaJet’s technology has converted steel mill emissions into products including sustainable aviation fuel, clothing ranges, laundry detergent, household cleaner and fine fragrances.
The company’s first two commercial scale gas fermentation plants have produced over 30 million gallons of ethanol, equivalent to offsetting the release of over 150,000 metric tons of CO2 into the atmosphere.
Jennifer Holmgren, CEO of LanzaTech, said:
“Creating a new carbon economy will require new ways of financing technology scale up and deployment. We are excited to partner with Brookfield to accelerate deployment and achieve exponential growth. Together, we have the potential to target significant commodity markets and keep fossil resources in the ground. Each additional plant deployed has the potential to keep the equivalent of around 100,000 tons of carbon from the atmosphere each year. This is the new carbon economy in action!”
Under the new partnership, Brookfield will invest an initial $500 million for the construction and operation of new CCT projects, with funding to be provided through Brookfield’s inaugural net zero-focused impact fund, the Brookfield Global Transition Fund. Brookfield will also invest $50 million in LanzaTech to support further corporate development.
Additionally, Brookfield will become the preferred capital partner for LanzaTech CCT opportunities in Europe and North America, and could commit an additional $500 million for investments in the partnership if sufficient projects are available at the agreed milestones.
Brookfield launched the net zero transition-focused fund last year, and in June 2022 announced its final close, raising $15 billion, making it the largest private equity fund raised to date dedicated to facilitating the global transition to a net-zero carbon economy.
Natalie Adomait, Managing Partner and Chief Investment Officer of BGTF, said:
“LanzaTech’s technology provides a new way to decarbonize hard-to-abate sectors across the economy. We view this as an attractive opportunity to accelerate deployment of this technology at scale and be a partner to grow in an emerging area of infrastructure in a decarbonized economy.”