13 Jul 2010

$US18 million funding raised by waste biofuel company

10:53 am on 13 July 2010

A company in Auckland that converts industrial waste into biofuels, has raised $US18 million from Chinese investors.

The funding has been raised by Chinese venture capital firm, Qiming Ventures, which will take a minority stake in Lanzatech.

After proving the technology worked on a small scale in Auckland, LanzaTech recently signed a deal with China's largest steel and iron company, Baosteel, to produce ethanol from the by-product gases of steel mills on commercial scale.

Ethanol is currently produced from food crops, such as corn or suger cane.

LanzaTech co-founder, Dr Sean Simpson, says the funding will enable the company to further accelerate the commercialisation process.

Dr Simpson says the company plans to produce over 200 million litres of ethanol per year, once the commercial facility is up and running.