Carbon recycler LanzaTech strikes financing deal with Brookfield



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

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.