In early November 2012 the Baosteel Waste Gas to Ethanol Technology Review Panel of the National Development and Reform Commission (NDRC) completed its due diligence on the LanzaTech-Baosteel pre-commercial facility located in Shanghai. The review panel visited the site and studied the process in detail, reporting that the waste-gas-to-ethanol project clearly met international standards regarding gas conversion rates and other technical milestones. The NDRC reported that the project can now officially enter the commercialization phase, scaling the process further to make steel mill waste gas-biofuel a commercial reality in China.

LanzaTech’s technology is the most advanced microbial gas fermentation technology in the world and can convert steel mill waste gases including blast furnace gas (BFG) and Linz-Donawitz or basic oxygen furnace gas into ethanol. Due to the high cost of recycling steel mill waste gases, most steel mills in China either use these gases for low-value-added electricity generation or flare them directly into the atmosphere. By capturing these waste gases from steel mills, LanzaTech’s technology provides an energy-efficient solution that allows steel mills to divert this waste stream to produce low-carbon fuels that don’t impact the food value chain.

As one of Baosteel’s diversified businesses, Baosteel Metal is dedicated to finding innovative industrial development solutions, accelerating the application of scientific R&D results and seeking novel ways to recycle waste gases. In February 2011, Baosteel Metal partnered with LanzaTech to establish China’s first waste gas recycling business enterprise – The Shanghai Baosteel Lanzatech New Energy Co., Ltd.

The 300-ton steel mill waste-gas-to-ethanol demonstration plant became fully operational in March 2012. So far a number of key technical milestones have been met and the plant is operating continuously and smoothly.

With increasing worldwide energy shortages it is becoming an inevitable trend to seek more energy efficient and cleaner energy solutions. The Baosteel-LanzaTech project has very broad market prospects and future development potential.