LanzaTech, a company using proprietary bacteria to convert industrial waste gases into fuels and chemicals (earlier post), is partnering with Taiwan-based LCY Chemical Corporation (LCY), one the world’s leading chemical companies, to identify key bio-based chemicals to produce for global fuels and chemicals markets.
Bowei Lee, CEO and Chairman of LCY, says LCY plans to investigate alternative bio-C2 to C5 feedstock as raw materials, replacing petroleum oil for LCY’s current portfolio of products such as TPE, PP, solvents, and methanol derivatives. LCY is also looking to further developments in bio green products including bio-plastics and bio-fuels.
LCY will fund the construction of production plants in exchange for access to LanzaTech’s
technology. LanzaTech’s proprietary gas fermentation technology has been proven to produce
low cost ethanol from steel mill gases and that has been extended to other industrial off gases
and synthesis gas from gasification. More recently it had been shown the LanzaTech process
can produce 2,3-Butanediol (2,3-BD) (earlier post), an oxygenate which can be used to make hydrocarbon
fuels—true drop in fuels that can replace diesel, jet fuel and gasoline—and high value
chemicals.
Dr Jennifer Holmgren, LanzaTech’s chief executive, says the implication from the heads of
agreement is LanzaTech’s technology will be able to deliver economic benefit through the entire
value chain from its feedstock suppliers to distributors.
LCY, a billion-dollar enterprise, is fully integrated and operates in Taiwan, China, Japan, Qatar
and the United States.
Bio-based chemicals are currently one per cent of global chemicals production, but that is
expected to increase to nine per cent during the next 10 years. LanzaTech
and LCY will produce key bio-based chemicals, creating new products and revenue streams for
both companies.—Dr. Holmgren