Chicago clean-tech firm LanzaTech has raised more funding as it looks to turn pollution into everyday products like fabric and fragrances.
LanzaTech has raised $30 million in new capital from ArcelorMittal, a steel manufacturing company headquartered in Luxembourg. The company made the investment through its XCarb innovation fund, and it's the fourth investment ArcelorMittal has made from the fund since March.
The two companies first started working together in 2015 when ArcelorMittal announced plans to use LanzaTech's technology at its plant in Belgium. LanzaTech's gas fermentation technology converts carbon waste into sustainable fuels and chemicals, and ArcelorMittal said LanzaTech will help the company reduce its emissions by 125,000 tons a year. The tech will in turn produce 80 million liters of bio-ethanol each year, which is blended with traditional gasoline to create a low-carbon alternative fuel for the transport sector, ArcelorMittal said.
LanzaTech, founded in 2005, aims to reduce global CO2 emissions with its carbon recycling technology. It has worked with companies like Unilever, Loreal, lululemon and Indian Oil, and has raised more than $400 million in outside funding.
Earlier this year, beauty conglomerate Coty announced it's working with the company to create sustainable fragrances. Unliever has tapped LanzaTech to produce a new laundry detergent pod. The firm also makes renewable fuel for airplanes through its subsidiary, LanzaJet, which launched last year with $50 million in funding.
Led by CEO Jennifer Holmgren, LanzaTech has more than 200 employees.
