BASF to invest in LanzaTech
In a joint statement, BASF Venture Capital GmbH (BVC), the investment arm of Germany-headed global chemicals major BASF AG has announced that it plans to invest an undisclosed amount in LanzaTech Inc., a US-headed biotech company that has developed a technology for gas fermentation that first enables ethanol to be produced from residual gases containing carbon monoxide (CO) and hydrogen (H2).
LanzaTech’s patented technology is now being deployed at commercial scale in the steel industry where carbon monoxide (CO) from residual gases (off-gases) can be converted into ethanol. Ethanol can be used as the raw material for the production of diesel, gasoline or jet fuel and as a precursor to plastics and polymers.
The company’s product portfolio includes additional biochemicals besides ethanol, such as chemical specialities and intermediates, that can be used as raw materials in other chemical production processes. The technology is also potentially suitable for treating and recycling waste streams in the chemical industry and for municipal waste disposal.
LanzaTech offers a promising technology that allows currently unused industrial residue and waste streams to be recycled. We support our customers and society with chemistry that makes optimum use of available resources, and we are working to integrate sustainability increasingly in all our business processes. One part of this, is investment in technologies that help to reduce carbon dioxide emissions, said Markus Solibieda, Managing Director of BASF Venture Capital.
Founded in New Zealand, LanzaTech has raised more than US$250 million from investors including Khosla Ventures, K1W1, Qiming Venture Partners, Petronas, Mitsui, Primetals, China International Capital Corp, Suncor, China International Investment Corporation (CITIC) and the New Zealand Superannuation Fund.
Investment from BASF will help us realize our goal of a Carbon Smart Future. BASF’s expertise in creating sustainable chemistry that benefits society aligns with our carbon recycling vision, where we capture and reuse waste carbon to make useful everyday items, displacing fossil feedstocks and keeping the sky blue for all, said Jennifer Holmgren, CEO of LanzaTech.
Founded in 2001, BASF Venture Capital GmbH (BVC), the aim of BVC is to generate new growth potential for BASF by investing in new companies and funds. Maintaining offices in Europe, the United States, China and Israel, the focus of investment is on chemical products and new materials, software and services as well as innovative and digital business models in the broader field of chemistry.