Carbon capture and transformation (CCT) company LanzaTech, which turns waste carbon dioxide into useful materials such as sustainable fuels, fabrics, and packaging, announced on Oct. 3 a funding partnership with Brookfield Renewable and its institutional partners. The partnership aims to develop and build new commercial-scale production plants using LanzaTech’s CCT technology.
The strategic partnership will commit an initial $500 million toward launching and operating new CCT projects. The funding will come from the Brookfield Global TransitionFund (BGTF), the biggest energy transition-focused fund in the world.
Brookfield could commit to an additional $500 million investment if there are sufficient projects available at pre-agreed milestones. In addition, Brookfield will invest $50 million for LanzaTech’s further corporate development.
“LanzaTech’s technology provides a new way to decarbonize hard-to-abate sectors across the economy,” said Natalie Adomait, Managing Partner and Chief Investment Officer of BGTF. This is an attractive opportunity to speed up the deployment of this technology at scale and grow in an emerging area of infrastructure in a decarbonized economy, she also said.
“Creating a new carbon economy will require new ways of financing technology scale up and deployment,” said Jennifer Holmgren, CEO of LanzaTech. Each new deployed plant could potentially remove 100,000 tons of carbon, Holmgren said. “This is the new carbon economy in action,” she added.
LanzaTech turns carbon into useful products such as sustainable aviation fuel, detergents, and fine fragrances, with the help of a biocatalyst that transforms emissions into fuels and chemicals.
Brookfield Renewable operates one of the world’s biggest publicly traded, renewable power platforms. Its portfolio consists of assets managed in the Americas, Europe, India, and China and includes hydro, wind, utility-scale solar, distributed generation, storage, and other renewable tech. The company is part of Brookfield Asset Management, which operates about $750 billion of assets.