January 3 (SeeNews) - New Zealand-founded LanzaTech has been awarded USD 4 million (EUR 3.8m) by the US Department of Energy (DoE) to design and plan a demonstration-scale facility in the US that will use industrial waste gases to produce low-carbon jet and diesel fuels.
The facility will make a low-cost ethanol intermediate called Lanzanol from off gases from steel manufacturing, LanzaTech said last week. The company will work with steel manufacturer ArcelorMittal (AMS:MT) on the project.
Lanzanol will then be converted to jet fuel through the "alcohol to jet" process developed by LanzaTech and the Pacific Northwest National Laboratory (PNNL). To demonstrate the versatility of the process, ethanol from other waste gas streams will also be converted, including cellulosic ethanol produced via fermentation of biomass syngas by Aemetis (NASDAQ:AMTX).
Among others, the project team further induces Illinois-based engineering company Ambitech, Michigan Technological University and Audi (ETR:NSU), which will be evaluating diesel and gasoline fuel properties.
The facility will have a capacity of 3 million gallons (11.4 million litres) of fuels per year.
LanzaTech noted it is now building its first commercial ethanol facilities using waste gases -- one in China with local steel company Shougang and one in Belgium with ArcelorMittal.
(USD 1.0 = EUR 0.956)