Shanghai, China – A new demonstration plant under construction in China will use biotechnology to produce fuel ethanol from steel mill off-gases.

The plant is a joint venture between technology company LanzaTech, Baosteel Group Corporation, and the Chinese Academy of Sciences, and will use LanzaTech’s gas fermentation technology for the process. Production is scheduled to begin late in the third quarter of 2011.

The plant, with a capacity of 100,000 gallons per year, is being built with the intention of quickly scaling the model again for the first commercial plant in China. The partners have also announced the intention to form a dedicated research and development centre to ensure the continued growth and evolution of the technology.

“What we start today will have a huge potential in the Chinese market,” said He Wenbo, president of Baosteel Group, “as it will positively impact the steel mill’s recycling operations and China’s new energy development.”

LanzaTech has now also extended its technology to producing key chemicals for the production of plastics, polymers and drop-in fuels from carbon dioxide and carbon monoxide.

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