Carbon recycler LanzaTech strikes financing deal with Brookfield

Brookfield Renewable

03/10/2022 12:00

By David French
       NEW YORK, Oct 3 (Reuters) - Carbon recycler LanzaTech NZ
Inc has struck a deal with Brookfield Renewable Corp  BEPC.N 
for a $500 million 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 $1 billion.
    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 decarbonize
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
 MT.LU  plant in Belgium and an Indian Oil Corporation  IOC.NS 
facility.
    As part of its agreement, Brookfield Renewable is also
investing $50 million 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
 AMCI.O  that valued the carbon recycler at $2.2 billion. 
    LanzaTech's previous backers include BASF  BASFn.DE , Mitsui
& Co  8031.T  and the venture arm of Malaysian state energy
company Petronas.
 (Reporting by David French in New York; Editing by Edmund
Klamann)
 ((davidj.french@thomsonreuters.com;))