LanzaTech Receives $3 Million from DOE to Convert CO2 Waste into Chemicals

LanzaTech Global, Inc., a leader in carbon recycling, has received a $3 million award from the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM) as part of a larger $29 million initiative aimed at enhancing carbon management. This funding supports LanzaTech’s Project ADAPT (“Accelerating Decarbonization via Advanced Production Technologies”), which focuses on converting carbon dioxide (CO2) into sustainable and economically valuable products—an essential goal for FECM.

Project ADAPT expands upon LanzaTech’s current technology, which uses CO2 as a feedstock to generate isopropanol at a pilot scale. The project aims to enhance this process with several key objectives:

1. Versatility in Feedstock Use: The project seeks to improve the platform's capability to process various gas mixtures containing CO2.

2. Microbial Strain Optimization: Advanced gene-editing techniques will be employed to create customized microbial strains for producing isopropanol and other widely used chemicals.

3. Cost and Efficiency Improvements: The project will refine the overall process to ensure it is more cost-effective, efficient, and robust.

Isopropanol, a versatile alcohol found in many everyday products, serves as a precursor in the propylene value chain. Propylene, a vital building block for a variety of applications, including packaging, medical supplies, and automotive components, is anticipated to see demand soar to nearly $150 billion and 180 million tons by 2030. Notably, producing isopropanol from recycled CO2 can achieve greenhouse gas savings exceeding 200% compared to traditional fossil carbon methods, while a non-fossil commercial production pathway is currently unavailable.

The $3 million investment from FECM will primarily fund Project ADAPT, which includes an additional $0.8 million contributed by LanzaTech, bringing the total project cost to approximately $3.8 million. The revenue and expenses associated with this project will be recorded under Joint Development Agreement and Contract Research results, with significant revenue expected to positively impact financial outcomes in 2025 and 2026.

Dr. Jennifer Holmgren, CEO of LanzaTech, expressed enthusiasm about the DOE's support, stating, “We are thrilled to receive this support from the U.S. Department of Energy to progress our work around scaling the conversion of waste CO2 to make some of the world’s most needed chemicals. CO2 is an essential feedstock of today and the future, and Project ADAPT leverages our expertise to accelerate the commercialization of transformational carbon capture and utilization technologies that deliver cleaner, more sustainable energy and products.”

This initiative aligns with the Biden-Harris Administration’s ambitious climate goals of achieving a carbon-neutral power sector by 2035 and reaching net-zero greenhouse gas emissions by 2050.