Steel-manufacturing giant ArcelorMittal has announced a $30 million investment in carbon recycling company LanzaTech.
The investment is the fourth that the company has made via the XCarb™ innovation fund, which was launched in March 2021.
Both companies already had an ongoing relationship that started back in 2015, hence the investment only expanded and deepened it further.
The partnership started when ArcelorMittal announced its plans to start using LanzaTech’s carbon capture and reuse technology at its Carbalyst plant in Gent, Belgium.
The carbon capture project also known as the Steelanol project is currently still under construction and is set to become operational by the end of 2022.
It has received funding from different sources, including also from the local government, the European Investment Bank and the European Union’s Horizon 2020 program.
LanzaTech is already well-known in the realm of carbon recycling for producing various products from recycled CO2.
For example, this year the company became the world’s first producer of PET bottles and other packaging materials from CO2 and this summer, LanzaTech also teamed up with high-end athletic apparel brand Lululemon to produce the first-ever carbon capture fabric.
The biotech startup’s technology uses gas fermentation and captures waste gases that are rich in CO2 from steelmaking and other emissions-intensive processes. As a result, the harmful emissions are converted into sustainable fuels and chemicals.
With the help of this technology, ArcelorMittal hopes to reduce its emissions by 125,000 metric tons of carbon dioxide per year.
In addition, the plant will produce a total of 80 million litres of bio-ethanol every year, which can be used to make low-carbon fuel alternatives for the transport industry by mixing it with conventional gasoline.