Carbon recycler LanzaTech strikes financing deal with Brookfield
The cash from Brookfield will be used to construct and operate new projects using LanzaTech’s technology in Europe and North America
03 October 2022 - 17:59
byDavid French
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
New York — Carbon recycler LanzaTech has struck a deal with Brookfield Renewable Corp for a $500m (R8.9bn) commitment by the investment firm to finance upcoming projects using LanzaTech’s technology, the companies told Reuters.
The cash from Brookfield, provided through its Global Transition Fund, will be used to construct and operate new projects using LanzaTech’s technology in Europe and North America.
Brookfield's capital commitment, which will be used to back projects meeting conditions agreed upon by the two companies, could ultimately rise to $1bn.
Founded in 2005, LanzaTech has developed technology which takes the carbon out of emissions and converts it into sustainable fuels, fabrics and other everyday products.
This has the dual effect of stopping greenhouse gases from escaping into the atmosphere and providing materials that would otherwise need to come from traditional fossil fuel-based methods.
“LanzaTech’s technology provides a new way to decarbonise hard-to-abate sectors across the economy,” said Natalie Adomait, chief investment officer of Brookfield’s Global Transition Fund.
Jennifer Holmgren, CEO of LanzaTech, told Reuters the partnership with a blue-chip investor such as Brookfield provides affirmation regarding the potential of the nascent industry of carbon recycling.
“Now we have the opportunity to go a lot faster,” she said.
Chicago-based LanzaTech has projects using its technology in China and plans to deploy it this year at an ArcelorMittal plant in Belgium and an Indian Oil Corporation facility.
As part of its agreement, Brookfield Renewable is also investing $50m in an instrument which converts into LanzaTech equity.
Earlier this year, LanzaTech struck a go-public deal with special purpose acquisition company AMCI Acquisition Corp II that valued the carbon recycler at $2.2bn.
LanzaTech’s previous backers include BASF, Mitsui and the venture arm of Malaysian state energy company Petronas.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Carbon recycler LanzaTech strikes financing deal with Brookfield
The cash from Brookfield will be used to construct and operate new projects using LanzaTech’s technology in Europe and North America
New York — Carbon recycler LanzaTech has struck a deal with Brookfield Renewable Corp for a $500m (R8.9bn) commitment by the investment firm to finance upcoming projects using LanzaTech’s technology, the companies told Reuters.
The cash from Brookfield, provided through its Global Transition Fund, will be used to construct and operate new projects using LanzaTech’s technology in Europe and North America.
Brookfield's capital commitment, which will be used to back projects meeting conditions agreed upon by the two companies, could ultimately rise to $1bn.
Founded in 2005, LanzaTech has developed technology which takes the carbon out of emissions and converts it into sustainable fuels, fabrics and other everyday products.
This has the dual effect of stopping greenhouse gases from escaping into the atmosphere and providing materials that would otherwise need to come from traditional fossil fuel-based methods.
“LanzaTech’s technology provides a new way to decarbonise hard-to-abate sectors across the economy,” said Natalie Adomait, chief investment officer of Brookfield’s Global Transition Fund.
Jennifer Holmgren, CEO of LanzaTech, told Reuters the partnership with a blue-chip investor such as Brookfield provides affirmation regarding the potential of the nascent industry of carbon recycling.
“Now we have the opportunity to go a lot faster,” she said.
Chicago-based LanzaTech has projects using its technology in China and plans to deploy it this year at an ArcelorMittal plant in Belgium and an Indian Oil Corporation facility.
As part of its agreement, Brookfield Renewable is also investing $50m in an instrument which converts into LanzaTech equity.
Earlier this year, LanzaTech struck a go-public deal with special purpose acquisition company AMCI Acquisition Corp II that valued the carbon recycler at $2.2bn.
LanzaTech’s previous backers include BASF, Mitsui and the venture arm of Malaysian state energy company Petronas.
Reuters
TIMOTHY THOMAS: Designs allowing for reuse paves the way to the circular economy
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
JAMES REELER: Business plea to soften carbon tax is a false economy
KATE THOMPSON DAVY: Surviving the merge — ethereum’s big move and what’s at ...
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.