LanzaTech, the Kiwi producer of low-carbon fuels and chemicals from waste gases and darling of the cleantech biz, has closed its Series C round with new investment totaling US$55.8 million ($68.8 million) led by the Malaysian Life Sciences Capital Fund.
New investors include PETRONAS Technology Ventures Sdn Bhd, the venture arm of PETRONAS, the national oil company of Malaysia, and Dialog Group, a leading Malaysian integrated specialist technical services provider to the oil, gas and petrochemical industry.
Existing investors Khosla Ventures, Qiming Venture Partners and K1W1 also participated in the round. To date, the company has raised more than $85 million.
Proceeds will be used to accelerate research, development and commercialisation.
“The size of this round and the quality of the new and returning investors is a strong validation of not only our technology, but the unparalleled opportunity for LanzaTech to be a global leader in biofuels and biochemicals markets,” chief executive Dr Jennifer Holmgren said.
LanzaTech uses a proprietary fermentation process to convert gases (including industrial waste gases and gas derived from any biomass source) into fuels and chemicals.
Roger Wyse, co-chairman of Malaysian Life Sciences Capital Fund, believes the company has nearly limitless potential.
“LanzaTech’s unique approach to taking a waste stream and converting it into a valuable and needed commodity will help address the dual challenge of energy demand and climate change without compromising the use of land and water resources.”
LanzaTech already has a number of technology, strategic and commercial partnerships with global entities under its wing, including eight Fortune 500 global companies.
In China, development of a demonstration plant to convert waste flue gas from steel manufacturing at a Baosteel (China’s largest steel manufacturer) plant is mechanically complete, and expected to begin production of ethanol later this year. The company is also working with Capital Steel (China’s fourth largest steel company) on a similar project.