LanzaTech and Brookfield form strategic partnership with an initial $500M commitment; possible $500M more at agreed milestones
LanzaTech, a company that transforms waste carbon into materials such as sustainable fuels, fabrics, packaging, and other products, announced a funding partnership with Brookfield Renewable, and its institutional partners, to co-develop and build new commercial-scale production plants that will employ LanzaTech’s CCT technology, which transforms captured carbon into valuable raw material commodities.
The funding partnership commits an initial $500 million to be invested by Brookfield Renewable in constructing and operating new CCT projects that have achieved certain pre-agreed milestones.
The funding will be provided through the Brookfield Global Transition Fund (BGTF), which is the largest fund in the world focused on the energy transition. Brookfield will be LanzaTech’s preferred capital partner for LanzaTech CCT opportunities in Europe and North America and following initial investments totaling $500 million, Brookfield could commit to making an additional $500 million available for investments in the strategic partnership if sufficient projects are available at the agreed milestones.
Brookfield will also invest $50 million in LanzaTech to support further corporate development.
LanzaTech’s technology provides a new way to decarbonize hard-to-abate sectors across the economy. We view this as an attractive opportunity to accelerate deployment of this technology at scale and be a partner to grow in an emerging area of infrastructure in a decarbonized economy.—Natalie Adomait, Managing Partner and Chief Investment Officer of BGTF
LanzaTech uses a biocatalyst to transform emissions into fuels and chemicals. LanzaTech’s first two commercial-scale gas fermentation plants have produced more than 30 million gallons of ethanol—the equivalent of offsetting the release of more than 150,000 metric tons of CO2 into the atmosphere. Additional plants are under construction globally.
Brookfield Renewable operates one of the world’s largest publicly traded, pure-play renewable power platforms. Its portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals approximately 24,000 MW of installed capacity and an approximately 100,000 MW development pipeline.
Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a leading global alternative asset manager with approximately $750 billion of assets under management.
The Brookfield Global Transition Fund, co-led by Mark Carney, Brookfield Vice Chair and Head of Transition Investing, and Connor Teskey, CEO of Brookfield Renewable, is Brookfield’s inaugural impact fund focusing on investments that accelerate the global transition to a net-zero carbon economy, while delivering strong risk-adjusted returns to investors. The Fund targets investment opportunities relating to reducing greenhouse gas emissions and energy consumption, as well as increasing low-carbon energy capacity and supporting sustainable solutions.