LanzaTech, a biotech company known for recycling carbon to create sustainable fuels, chemicals, materials, and protein, has secured $3 million in funding from the U.S. Department of Energy’s (DOE) Office of Fossil Energy and Carbon Management (FECM). This grant is part of a $29 million initiative to advance carbon management strategies. LanzaTech’s initiative, called Project ADAPT (“Accelerating Decarbonization via Advanced Production Technologies”), was chosen to focus on converting carbon dioxide (CO2) into eco-friendly and economically valuable products.

Project ADAPT aims to build on LanzaTech’s current work in using CO2 to produce isopropanol at a pilot scale. The project’s key objectives include:

• Versatility in Feedstock Use: Enhancing the platform’s ability to process a variety of gas mixtures containing CO2.
• Microbial Strain Optimization: Using gene-editing techniques to develop specialized microbial strains for producing isopropanol and other common chemicals.
• Cost and Efficiency Improvements: Making the overall process more cost-effective, efficient, and resilient.

Isopropanol, a widely used alcohol found in cleaning products and a key component in the propylene supply chain, is essential in industries like packaging, healthcare, and automotive. The global demand for propylene is expected to reach $150 billion and 180 million tons by 2030. Notably, producing isopropanol from recycled CO2 can achieve more than 200% greenhouse gas savings compared to production from fossil fuels, and no commercial non-fossil production method currently exists.

Project ADAPT will be primarily funded by FECM’s $3 million investment, with LanzaTech contributing an additional $0.8 million, bringing the total project cost to $3.8 million. LanzaTech will report the related revenues and costs as part of its Joint Development Agreement and Contract Research results, with most of the revenue expected in 2025 and 2026.

"We are thrilled to receive this support from the U.S. Department of Energy to progress our work around scaling the conversion of waste CO2 to make some of the world’s most needed chemicals," said Dr. Jennifer Holmgren, CEO of LanzaTech. “CO2 is an essential feedstock of today and the future, and Project ADAPT leverages our expertise and existing operations to accelerate the commercialization of transformational carbon capture and utilization technologies that deliver cleaner and more sustainable energy and products.”

The DOE’s investment in projects like Project ADAPT aligns with the Biden-Harris Administration’s climate goals of achieving a carbon-neutral power sector by 2035 and net-zero greenhouse gas emissions by 2050.