(EnergyAsia, February 10 2012, Friday) --- LanzaTech, a New Zealand-based producer of low-carbon fuels and chemicals from waste gases, said it has raised US$55.8 million in its latest Series C round of funding from new investors led by the Malaysian Life Sciences Capital Fund.

The Malaysian investors include Petronas Technology Ventures Sdn Bhd, the venture arm of the country’s state oil and gas company, and Dialog Group, a leading local engineering company serving the oil, gas and petrochemical industries.

Existing investors Khosla Ventures, Qiming Venture Partners and K1W1 also participated in the round, enabling the company to raise more than US$85 million to date.

Jennifer Holmgren, LanzaTech’s chief executive, said this funding will accelerate the development of next generation integrated biorefineries using its technology platform to produce sustainable low carbon chemicals and fuels.

“The size of this round and the quality of the new and returning investors is a strong validation of not only our technology, but the unparalleled opportunity for LanzaTech to be a global leader in biofuels and biochemicals markets,” Dr Holmgren said.

LanzaTech uses a proprietary fermentation process to convert gases including industrial waste gases and gas derived from any biomass source into fuels and chemicals.

Roger Wyse, co-chairman of Malaysian Life Sciences Capital Fund, believes the company has nearly limitless potential.

“LanzaTech’s unique approach to taking a waste stream and converting it into a valuable and needed commodity will help address the dual challenge of energy demand and climate change without compromising the use of land and water resources,” he said.

LanzaTech said its fuel strategy is already well developed through technology, strategic and commercial partnerships with global entities, including eight Fortune 500 global companies.

In China, it has developed a demonstration plant to convert waste flue gas from steel manufacturing at a Baosteel (China’s largest steel manufacturer) plant, and expects to start producing ethanol later this year.

The company is also working with Capital Steel (China’s fourth largest steel company) on a similar project.

In India, LanzaTech is working with Indian Oil and Jindal Power and Steel Limited on a facility to convert industrial waste gases into ethanol. It also has partnered with Concord Blue on a project to convert municipal solid waste into ethanol throughout the country.

In the US, LanzaTech is developing a facility to produce renewable fuels and chemicals from regionally sourced waste wood in Soperton in Georgia state. It is also working with the US Department of Energy, the Department of Defense (Defense Advanced Research Projects Agency – DARPA) and the Federal Aviation Administration, to adapt its technology to produce aviation fuels for commercial and military use.

“Biofuels will contribute to a significant portion of the energy supply in the future,” said Chan Yew Kai, president and chief operating officer of Dialog Group.

“Lanzatech’s environmentally friendly fermentation technology using microbes to convert industrial waste gases to biofuel and other chemical products provides Dialog Group the ideal platform to be part of this exciting business sector.”

Haida Shenny Hazri, CEO of Petronas Technology Ventures Sdn Bhd, said its investment provides a platform to pursue the integration of LanzaTech’s technology on converting waste gases with Petronas’ operations.