LanzaTech (NASDAQ: LNZA) has announced a pioneering collaboration with French mining and metallurgy company Eramet (Euronext Paris: ERA) to develop an integrated carbon capture, utilization, and storage (CCUS) facility at Herøya Industrial Park in Porsgrunn, southern Norway.
Scheduled to open in 2028, the plant will utilize advanced carbon recycling technology by LanzaTech to produce ethanol from furnace gas supplied by Eramet’s manganese smelter, without direct financial involvement from Eramet.
This “first-of-a-kind” facility aims to transform carbon emissions into fuel-grade ethanol, with a production capacity of 24 kilotons per year, LanzaTech said in a statement on Thursday.
LanzaTech’s fermentation technology will convert carbon-rich gases into sustainable products like ethanol, which has applications across chemicals, packaging, and sustainable aviation fuel (SAF).
The CCUS project is expected to contribute significantly to Eramet’s decarbonization efforts, including the goal of reducing its Scope 1 and 2 emissions by 40% by 2035.
It could cut carbon dioxide (CO2) emissions by approximately 200 kilotons, bringing the company closer to its ambition of a zero-CO2 manganese alloy, according to Eramet’s Chief Development Officer, Geoff Streeton.
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To amplify the impact, the companies are exploring a second phase that would integrate carbon capture and storage (CCS) technology, hoping to create a model facility for advanced carbon management.
Fluor Corporation has partnered on the facility’s front-end engineering design (FEED), which establishes a baseline for replicating the model globally, with additional support from Sweco Group.
LanzaTech’s CEO, Dr. Jennifer Holmgren, emphasized the project’s role in establishing a circular carbon economy.
By recycling above-ground carbon with our CCU process, this groundbreaking project brings us closer to a sustainable global carbon economy, she said.
Besides reducing emissions, the plant is expected to boost the local economy by creating jobs in the Grenland region, strengthening Porsgrunn’s reputation for industrial innovation.
A final investment decision is expected within the next six months, supported by Brookfield Asset Management, LanzaTech’s infrastructure investment partner, which has the right of first refusal for financing and owning the plant.
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