Carbon Capture and Utilization: Developing Tomorrow's Technology with LanzaTech

Summary

The transcript from a Green Lounge event discusses the innovative collaboration between LanzaTech and Primetals Technologies to decarbonize the steel industry through gas fermentation. Jennifer Holmgren, CEO of LanzaTech, and Alexander Fleischanderl, Head of Green Steel at Primetals Technologies, along with other industry experts, delve into the partnership's journey over the past decade. They highlight the successful development of a plant in Europe that converts carbon-rich waste gases from blast furnaces into renewable ethanol, a significant step towards sustainable steel production. The panelists explore the potential of biological fermentation in transforming CO2 emissions into valuable products, the challenges and future outlook of the steel industry, and the importance of embracing a circular economy. They emphasize the need for aggressive technological adaptation and the role of carbon capture, utilization, and storage (CCUS) in achieving net-zero targets. The discussion also touches on the scalability of gas fermentation technology, the economic considerations, and the resilience of steel as a material despite advancements in other materials.

Takeaways

• 🤝 **Partnership Focus**: LanzaTech and Primetals Technologies have a decade-long collaboration aimed at decarbonizing the steel industry through gas fermentation solutions.
• 🌱 **Sustainable Innovation**: The joint project, Steelanol, utilizes biological fermentation to transform carbon-rich waste gases from steel production into renewable ethanol.
• 📜 **Agreement Expansion**: LanzaTech and Primetals have recently signed a second collaboration agreement to further their work in sustainable steel production.
• 🔬 **Technological Process**: The gas fermentation process involves microbes that convert CO2 and CO gases into ethanol, similar to beer fermentation, creating a sustainable product.
• ♻️ **Circular Economy**: LanzaTech's technology supports a circular carbon economy by recycling carbon emissions from steel mills into usable materials and chemicals.
• 🚀 **Market Potential**: The market for CO2 utilization is significant, with potential applications in sustainable aviation fuel and the production of various chemicals and materials.
• 🌟 **Commercial Progress**: LanzaTech has six commercial plants in operation, demonstrating the scalability and potential for exponential growth of their technology.
• 🔑 **Key Success Factors**: Reducing costs, technological innovation, and strategic partnerships are crucial for the widespread adoption of gas fermentation in the steel industry.
• 📈 **Economic and Environmental Synergy**: The technology not only helps in decarbonizing the steel sector but also provides economic benefits by producing valuable byproducts.
• 🌐 **Global Impact**: The technology has global applications, with projects in China, India, and Europe, showcasing its versatility across different regions.
• ⏳ **Timeline for Development**: The development and deployment of gas fermentation plants take approximately two and a half years, emphasizing the importance of starting the transition process early.

Q & A

What is the main focus of the collaboration between LanzaTech and Primetals Technologies?

The primary focus of the collaboration is to develop and implement gas fermentation solutions for decarbonizing the steel industry.

What was the significance of the first European LanzaTech plant?

The first European LanzaTech plant marked a milestone in the partnership, as it was the first to successfully ferment gases and produce renewable ethanol from carbon-rich waste gases.

How does the technology behind the carbon-smart process work?

The technology uses biological fermentation to transform CO2 or CO gases from the steel industry into ethanol through microbial processes, which can then be used in various industries.

What are the main benefits of the unique fermentation process for the steel industry?

The fermentation process allows for the utilization of waste gases, reducing the carbon footprint of the steel industry, and enabling the production of renewable ethanol and other valuable products.

What is the potential market size for CO2 utilization in the context of steel mill gases?

The potential market size is substantial, with applications in sustainable aviation fuel, petrochemicals, and other industries, potentially reaching billions of tons.

What are the key success factors for steel producers looking to reduce their carbon footprint?

Key factors include adopting a circular economy approach, recycling carbon byproducts, partnering with technology providers like LanzaTech, and integrating these technologies into steel production processes.

How long does it typically take to develop a project with the capacity of capture and utilization like LanzaTech's?

Under optimal conditions and assuming no unforeseen delays, the timeline from contract signing to commissioning is about two and a half years.

What is the scalability of the gas fermentation technology used by LanzaTech?

The technology is modular and scalable, with recent developments allowing for double the throughput in the same reactor size, making it adaptable to various scales of operation.

How does the transition to green hydrogen affect the gas fermentation process?

As the steel industry transitions to green hydrogen, the same fermentation system can be used to increase ethanol yield by adding hydrogen to the process, making it a flexible solution for different stages of industry transition.

What is the future outlook for the steel industry in terms of decarbonization?

The steel industry is expected to continue its decarbonization efforts, with more electric arc furnaces and a shift towards electrification. However, carbon capture and utilization technologies will remain relevant for existing blast furnaces.

How does LanzaTech's technology contribute to the circular economy?

LanzaTech's technology contributes by capturing carbon-rich waste gases and converting them into usable products like ethanol and other chemicals, thereby recycling carbon and reducing waste.

Outlines

00:00

🤝 Partnership and Innovation in Green Steel Technology

The panel discussion at the Green Lounge event focuses on the collaboration between Lanza Tech and Primetals Technologies in developing gas fermentation solutions to decarbonize the steel industry. The partnership, initiated 10 years ago, has recently been extended. Jennifer Holmgren, CEO of Lanza Tech, and Alexander Fleishandle, Head of Green Steel at Primetals Technologies, discuss the early days of the collaboration, their shared vision for green technology, and the first plant in Europe that produces renewable ethanol from carbon-rich waste gases. The discussion also covers the potential for further integration of technologies and the innovative process of transforming CO2 gases into valuable products like ethanol and other molecules.

05:01

🌱 Carbon Capture and Utilization in the Steel Industry

The conversation explores the benefits of a unique fermentation process for the steel industry, which aligns with the goal of decolonization. Alexander Fleishandle emphasizes the importance of utilizing available technologies like carbon capture, utilization, and storage (CCUS) with Lanza Tech's process. The discussion also touches on the long-lasting partnership between the companies and their shared commitment to developing groundbreaking solutions for heavy industry decarbonization. Carl Porkatoffer, Global Head of Services at Primetals Technologies, joins the discussion, highlighting the need for more aggressive adoption of new technologies and the importance of vision-led initiatives, much like Tesla's impact on the electric car industry.

10:01

📈 Market Potential and Scalability of CO2 Utilization

The panelists discuss the market size and potential for CO2 utilization, particularly in the context of steel mill gas fermentation. They highlight the vast market opportunities, such as sustainable aviation fuel and the petrochemical industry's demand for ethylene. Jennifer Holmgren explains that the technology is scalable, with six commercial plants operational by the end of the year. The conversation also addresses the need to reduce costs and improve efficiency through technology innovation and increased deployment. The potential for genetically modified organisms to produce a variety of chemicals is also mentioned, showcasing the adaptability of the fermentation process for different products.

15:04

🔄 Circular Economy and Carbon Recycling in Steel Production

The discussion delves into the concept of a circular economy within the steel industry, emphasizing the importance of recycling carbon byproducts. Jennifer Holmgren illustrates how captured carbon can be repurposed into everyday materials, thus preventing additional fossil fuel use and breaking the linear carbon supply chain. The panelists also emphasize the importance of collaboration between large and small companies to drive innovation and create a sustainable future. Lanza Tech's recent public listing and future milestones are also discussed, with a focus on expanding the technology's deployment and exploring new resources.

20:05

🚀 Accelerating Technology Deployment for a Greener Future

The panelists address the timeline for developing and scaling up projects involving carbon capture and utilization. They agree that the process is complex and involves a learning curve, but with modular and scalable reactors, the timeline from contract signing to commissioning is approximately two and a half years. Alexander Fleishandle asserts that steel will continue to be essential due to its unique properties and the ability to use secondary raw materials, making it a sustainable choice for the long term. The discussion concludes with an audience question about the use of carbon monoxide and carbon dioxide in the fermentation process, highlighting the flexibility and adaptability of the technology as the steel industry transitions.

Keywords

💡Fermentation Technologies

Fermentation technologies refer to the biological processes that convert organic substrates into energy-rich products. In the context of the video, these technologies are pivotal for decarbonizing the steel industry by converting waste gases into valuable products like ethanol. The script mentions how LanzaTech and Primetals Technologies have collaborated to develop gas fermentation solutions, which is a significant theme of the discussion.

💡Decarbonization

Decarbonization is the process of reducing the amount of carbon dioxide and other greenhouse gases emitted into the atmosphere. It is a key concept in the video as it discusses the efforts of LanzaTech and Primetals Technologies to decarbonize the steel sector. The script highlights the shared belief of the need to decarbonize the steel sector, which is the basis for the collaboration between the two companies.

💡CO2 Utilization

CO2 utilization involves the use of carbon dioxide (CO2) as a feedstock to produce useful products, thereby reducing emissions. The video discusses how LanzaTech's technology can convert CO2 and other gases into ethanol and other chemicals, which is a significant part of the company's strategy for sustainable production. The script provides examples such as the creation of a Zara dress from recycled carbon at a steel mill in China.

💡Gas Fermentation

Gas fermentation is a biological process where microorganisms convert gases like hydrogen, carbon monoxide, and carbon dioxide into liquid fuels or chemicals. In the video, it is mentioned as a breakthrough solution for transforming carbon-rich waste gases from the steel industry into renewable ethanol. The script explains how this technology works, with the bacteria consuming gases in a bioreactor to produce ethanol and a protein-rich co-product.

💡Sustainable Aviation Fuel

Sustainable aviation fuel (SAF) is a type of jet fuel that produces less carbon dioxide than conventional fossil fuels. The video script discusses the potential to convert ethanol, produced through gas fermentation from steel mill gases, into SAF. This represents a significant market opportunity and a key application for the technology being discussed, contributing to the decarbonization of the aviation industry.

💡Circular Economy

A circular economy is an economic system aimed at eliminating waste and the continual use of resources. The concept is central to the video's narrative, as it discusses how the partnership between LanzaTech and Primetals Technologies is focused on creating a carbon economy where waste and pollution are minimized. The script illustrates this with examples such as the use of recycled carbon to produce everyday items like clothing and perfumes.

💡Green Steel

Green steel refers to steel produced through processes that minimize environmental impact, particularly by reducing carbon emissions. The video emphasizes the development of green steel as a facilitator for the steel industry's transition towards sustainability. The script mentions the 'Green Lounge orange is green' project as an example of the efforts to produce green steel.

💡Carbon Capture and Utilization (CCU)

Carbon capture and utilization is a process that involves capturing carbon dioxide emissions and converting them into useful products. The video script discusses CCU as a critical technology for decarbonizing the steel sector. It is highlighted as a key aspect of LanzaTech's approach, with the company's unique process being a strong focus of the collaboration with Primetals Technologies.

💡Biological Fermentation

Biological fermentation is a metabolic process that uses microorganisms to convert carbohydrates into cellular energy and byproducts. In the context of the video, it is used to describe the process by which CO2 and other gases are transformed into ethanol and other valuable chemicals. The script provides an analogy to beer fermentation to explain how this technology can be applied in the steel industry.

💡Genetically Modified Organisms (GMOs)

Genetically modified organisms are organisms whose genetic material has been altered through genetic engineering. The video discusses LanzaTech's use of a genetically modified bacteria that can convert gases into chemicals like acetone and isopropanol. This represents an advancement in gas fermentation technology and is a key point in the company's innovation strategy.

💡Steel Industry Decarbonization

Steel industry decarbonization refers to the efforts and technologies aimed at reducing the carbon footprint of steel production. The video script covers the collaboration between LanzaTech and Primetals Technologies to achieve this goal through innovative gas fermentation solutions. It is a central theme of the discussion, with panelists sharing insights on the challenges and potential solutions for the steel industry to become more sustainable.

Highlights

LanzaTech and Primetals Technologies have been collaborating for 10 years to develop gas fermentation solutions for decarbonizing the steel industry.

The partnership started with a joint cooperation agreement and Primetals becoming a shareholder in LanzaTech.

The first fruit of the collaboration is the LanzaTech plant in Europe, which recently produced its first fermentation from gases.

The LanzaTech process uses biology to transform CO2 and other waste gases from steel mills into renewable ethanol and other valuable chemicals.

The technology can utilize a range of feedstocks and produce various products, providing flexibility for the steel industry.

The process can help the steel industry reduce its carbon footprint while also creating new revenue streams from the production of sustainable chemicals.

The LanzaTech process is a key part of Primetals' strategy to support the decarbonization of the steel sector.

The partnership has recently been extended to accelerate the commercialization of LanzaTech's technology and enable decarbonization of the steel industry.

The European steel industry is leading the way in decarbonization, with major steelmakers setting intermediate targets for 2030 and a net-zero goal by 2050.

Carbon capture and utilization, including the LanzaTech process, will be critical to decarbonizing the steel industry, especially for assets that cannot be easily electrified.

LanzaTech's gas fermentation technology is modular and scalable, enabling it to be deployed at various scales to meet different needs.

The technology can use a mix of carbon monoxide, carbon dioxide and hydrogen as inputs, providing flexibility as the steel industry transitions to different energy sources.

LanzaTech has developed a genetically modified organism that can produce additional chemicals like acetone and isopropanol from steel mill gases.

The technology can create a circular carbon economy, recycling carbon from steel production into new materials and chemicals.

The partnership between LanzaTech and Primetals is an example of large and small companies working together to create innovative solutions for decarbonization.

LanzaTech has a pipeline of six commercial plants that are operational or under construction, which will help reduce costs and improve the technology.

The technology has the potential to create a local supply chain for chemicals and materials by producing them at the time and place they are needed.

The LanzaTech process can also produce a protein-rich co-product from the bacteria used in the fermentation, which can be used as animal feed.

Steel is expected to remain the material of choice for a wide range of applications due to its unique properties and recyclability.

Transcripts

foreign

Lounge event that will focus on

fermentation Technologies for

decarbonizing the steel industry

for 10 years lansa Tech and Prime metals

have worked closely together to develop

new breakthrough gas fermentation

Solutions and very recently the partners

signed a second collaboration agreement

and today for this Green Lounge event

we have four specially invited speakers

here to discuss the partnership Jennifer

Holmgren CEO Atlanta Tech

Global business development director

lanzotec

Alexander fleishandle head of green

steel at primatals Technologies and Carl

porkatoffer Global head of services

primary Technologies

so without further Ado let's start the

panel discussion

the partnership between lanzotec and

Prime Metals technology started formally

10 years ago with the signing of a joint

cooperation agreement and primetals

becoming a shareholder of lanzotec

Jennifer could you please tell us more

about the early days of the

collaboration

um and basically how it all started

aberration is based on a shared belief

that that there is a need to decarbonize

the steel sector and

Prime Metals has always been focused on

technology the Green Technology

development and so we had the

opportunity to join forces to see how

their vision for green

car a green steel and our vision and our

approach could fit into their portfolio

and our first collaboration we worked

together on building our first plant in

Europe This is against plant steel and

all and actually this week we had the

first fermentation from gases again and

this is really the first fruit of that

collaboration and we hope to do a lot

more in the future

okay sounds great

offer your work with lancotec from the

get-go

what were the expectations on the

collaboration early on

now I have to say that uh

today as at that time you know we're

really excited about this uh

collaboration you know with Atlanta day

and uh we we are excited to work you

know with the technology we are excited

to work with the the people and the

story you know uh this uh is a great

story for the steel industry to bring

biotechnology to the steel industry and

the expectation is is today is the same

that we together will work on Solutions

you know to to solve the problems of

tomorrow and today and I think there's

great potential still to be explored I

think we we have you know explored a lot

and have achieved a lot but I think

there's more ways to to get uh you know

this integration between our you know

Technologies and the landside technology

is moving away from an end of pipe

technology and integrating it into the

steel industry and I think they are

there as much more exploration

possibilities and Potentials in the

future but bringing together the

expertise of Steel making and the plant

building with the technology of Lancer

dig is a great story and we still

believe in it yeah

indeed a great story

um steel and all is a joint project

between Oracle metal lanzotec and Prime

Metals Technologies and actually we're

happy to announce that the first

European lands attack unit started up

earlier this month June and the plant

will take carbon Rich waste gases from

the blast furnace and produce renewable

ethanol for application in various

Industries

um

Sonia could you please tell us more

about the technology behind this carbon

smart process yeah sure I mean who could

believe that biology can transform CO2

gases or co-age gases in the steel

industry so this is like a dream coming

true it's like a biological fermentation

where you take the gases through the

microbes sitting in Germany and

analogies going with the beer

fermentation it works very well actually

so so we ferment the gases and make

ethanol out of it and that ethanol can

go into various other products in the

value chain for carbon smart for for

sustainable aviation fuel and all the

stuff and that that's not the end of the

story right Lanza Tech has been very

Innovative company and we went on to the

journey to make different molecules the

ethanol is just one of the molecules we

started and there's number of molecules

in the supply chain value chain coming

up and also technology works on the

hardware and software sort of thing that

we can very flexibly take many of the

feedstocks and also produce many of the

products you can still keep the same

hardware for as long as you would like

to keep in so I mean this is this is a

great story of having biological

fermentation into the Steel Bill and

that works very well to produce these

amazing products

interesting and speaking of of steel

mills Alexander could you uh please tell

us more about the main benefits for the

steel industry with this unique

fermentation process

well um basically we we are heading

towards the colonization right and

Prime Metals is a technology agnostic

company so we have to follow every

pathway that supports the decolonization

of the steel sector and it's an hard

debate sector so it's not easy

uh while we're waiting for for the

hydrogen and for the massive amount of

Renewable Power being available to

decarbonize we prefer not to sit and

wait but to utilize the Technologies

they are ready today to be to be

implemented and ccus with lantadex

unique process is definitely available

it's still risked not only in gained but

before in in in China and all the other

projects on the on the way

so that's the the reason we be a strong

believer in the CC us technology in

lanzadex unique process and this now for

for many many years so I still remember

when Jennifer we met

early

2012 still in the old offices so it's

not only partnership it's uh it's it's a

friendship we share and I'm really happy

happy about that how these things

developed and I'm also happy that we

prolongated today with the signing

ceremony also our close call operation

so it is indeed a long-lasting

partnership for more than 15 years you

have developed groundbreaking solution

to support the the carbonization of the

heavy industry as mentioned earlier just

recently Lance attack can prime Metals

extended the collaboration

um could you give us a sneak peek of

what's coming up next

yeah I think we we all realize that

there are massive challenges in steel

industry to to go into green steel and

we completely as Jennifer said before

actually we completely admire what prime

Metals is doing to really make green

steel you can take the example of this

Green Lounge orange is green and all the

stuff what you're doing great job hats

off to you guys so certainly Lanza Tech

also sees a huge sort of potential there

with Corporation cooperation with prime

metals to take the technology take the

challenge to enable our steel customers

to make green steel if possible tomorrow

not to wait for three years five years

when you have all this infrastructure

with all those hydrogen and everything

so technology is ready to go and work

together with prime Metals we really

want to accelerate commercialization of

Lanza tech technology and also enable

decarbonization axillary decarbonation

for the steel industry as quickly as we

can so this is what we're going to

achieve over the next few years together

with prime metal that's our objective

correct

absolutely correct

so thanks let's have a an outlook here

future outlook how will the steel

industry look like in 10 years in your

mind Alexander well I would say 10 years

is a pretty short Outlook and when we

talk about this still distilled sector

so

um if I look into the crystal ball I

would say in 10 years it it won't look

so different from from today

there for sure will be some movements

especially in the European steel sector

with implementation of more electric Arc

furnaces so it's going toward

electrification but 10 years is a short

time frame so well in 10 years we will

still still see most of the blast

furnaces there that are producing hot

metal still in place if we talk about 20

40 20 50 it might look differently so

our forecast is that after 2050

the the capacity of the plus furnace

production will have

but if we look into India into southeast

Asia we will have many new Blasphemous

assets even in 2030 2040 so and that's

also our strong belief the the only way

to decarbonize this relatively new Blast

Furnace assets is carbon capture storage

and utilization and I'm also a strong

believer in the utilization so there

will be a massive amount that we are

going to capture in in CO2 but the best

way is not to sequestrate it the best

way is to give the carbon a second

second life and that's all about the

story of carbon smart

Carl would you like to add something

yeah man I'm basically in line here with

the lxas I mean what we will see in 10

years is my eafs more DIY a little

hydrogen you know use also more and more

but as we know the steel industry is not

the most disruptive industry uh you know

and we have a more transformational way

in in change but uh what I want to say

here is that we sometimes I think also

our industry needs to move Boulder you

know we want to see more builder moves

when when we see you know the uh the

emerging countries for example and I'm

traveling a lot we see here much more

you know uh aggressiveness in technology

adaptation rate I mean the technology

adaptation rate is just amazing you know

when you look uh specifically into Asia

how fast they move and I think I wish

also in the western world that we are

sometimes more aggressive moving forward

into new technologies sometimes I feel

that you know we are

you know present in the discussion about

the return on investment

what the technology bring what is the

business case but if you have a vision

you know you need to go for it if you

believe in it and sometimes I think we

are here a little bit captured in this

discussion and I think also we all love

Tesla you know a lot of people maybe

drive electric cars but I think when

Elon Musk would have always based his

decisions on the ROI you know I think we

have no electric cars on the road today

and this is I think something where

where we need to move and that's

something we want to see in the future

thank you

so green steel is indeed

um probably the main facilitator for the

steel industry in Europe and there are

many interesting developments right now

going on and Alexander could you give us

an update on the current situation in

Europe

within the field of green steel

production yeah well Europe is indeed

ahead and leading the decarbonization a

story and that all started as all of the

audience will know with uh with the

announcement of the green deal and the

whole subsequent uh supporting

mechanisms and recently now with the new

ETS and sebum and now with the new

industrial act coming into coming into

place with governmental funding and so

on so most of the European steel mills

have set a sound password plan how to to

decarbonize but anyhow this

decarbonization will will come in in

phases

so there are intermediate targets and

most of the major steel makers have set

intermediate Target for 2030 and Target

then at least the latest to be Net Zero

by by 20 2050 and the if we look there

is not one single way to it to achieve

that the net serial Target in 20 20 50.

so that's really a wide range of

Technologies and different strategies

they're going they're going to apply and

like the one also of Arsenal metal and

great having also Anderson sitting here

in the in the audience

for for Silo metal and in the integant

project I guess it really important and

and cool having now the first

industrial scale project and not only

saying a project it's it's it's just

amazing yeah from from the basis of the

design of the quality of the safety

there so it it's a showcase it's a real

Showcase in in Europe and I do hope that

with this showcase is

um we we will get the right response

from other steel makers that this is one

of the the pillars to achieve Net Zero

yeah thanks and you mentioned the 2058

Target obviously many blast furnaces

will be phased out by 2050.

um

Carl will CC us Technologies still be

relevant in the future

good question I mean uh yes indeed you

know to answer that straight I mean the

blast furnace says Alexa mentioned is

not going away

and you know at the end you know we have

all those numbers at the moment on the

table and on the slides you know we we

what we need to grade in these

Transformations enormous you know the

efforts when we cannot Electrify the

whole world huh you know we need to

Triple until 2050 I think I read this

article in uh in financial times this

week you know the triple the the you

know energy production to 90 beta what

hours or something like that and what is

with the infrastructure so you know the

grids have to be J so we cannot

Electrify everything you know so I think

there's a lot of questions to be uh

answered they are still open and that's

the reason why why we believe that

carbon capture is is a very important

solution for the future we need to

innovate more on those kind of solution

carbon capture utilization

uh and uh I think this uh there is a

much more innovative solutions out there

and I think uh that's the way we want to

go together with Lancer deck and then

also we believe in this circular economy

and I think this is the only way to go

and uh Jennifer in your mind what are

the key

um success factors for steel producers

who just got started with their efforts

to reduce their carbon footprint

the way I think about carbon footprint

is what's the right place for carbon so

today we use carbon for power production

we use carbon for fuels and we use

carbon for all of the materials we use

in our daily lives

we can start to couple Supply chains

like steel making where there is some

carbon that's a byproduct of the process

and it's being used chemically so you're

not going to displace that simply with

power you take that byproduct carbon and

you can recycle it and give it a second

chance then the second thing you end up

doing if you make a material is you keep

additional fossil in the ground

this linear supply chain that we have of

carbon from the ground to a product to

the air or to our oceans has to be

broken and so this is a way of breaking

it by recycling a carbon that was used

to make steel to make something else our

first project in Europe with our solar

middle is making ethanol if you go

across to the little booth that we have

you will see a Zara dress where the

polyester was made from a recycled

carbon at a steel mill in China we've

made dresses we've made running shorts

we've made Cody Cody has made the Gucci

they're Top Line perfume from this and

so if you take a step back you should

let it blow your mind right that a gas

that was going to be in the atmosphere

as particular emissions and greenhouse

gases instead was captured and converted

the things we use and need every day and

I think that circular economy is what

we're doing that circular economy is

what we're bringing as part of this

partnership with steel producers to

create a very different carbon economy

Net Zero is a great Target

but more importantly The Net Zero is how

to create a future where there is no

such thing as waste where there is no

such thing as pollution and and that's

what we're working towards that this is

a step in that Journey

great thanks and could you also tell us

a bit more about the next exciting

milestones for for Lance attack going

forward sure

um so we just took the company public

and our next Milestones are about

diffusing the technology working with

more steel companies but also we've got

plants in refineries we're starting to

use with Indian oil in in India we have

a plant we have plants also with

Municipal Solid Waste we can use many

resources so the next step for us is to

do more deployment and this is actually

why working with somebody like Prime

Metals is so important right the big

gorilla

helping us on this journey you're you're

the big gorilla he's just along for the

ride

um but you know it's about that journey

of big companies partnering with small

companies to create the future right and

and still come companies taking risks

right when our solar Metals said we're

going to deploy this we didn't have a

commercial plant anywhere and yet they

stepped up so I think the future is is

about partnership and the future is

about deploying and for us our biggest

Milestone is just to build more

facilities with companies that are

willing to say let's try something a

little different that creates a better

future

thank you building Partnerships is

indeed a key success factor and with

that we have actually come to the Q a

session so this is

an opportunity for you here in in the

audience to direct your questions to our

panelists here

so please go ahead yes we have a

question here

good morning thank you for this very

nice presentation and session my

question is about the market size for

the carbon utilization for the CO2

utilization assuming that all the

technology will be the same with Las

furnaces production in worldwide so do

you believe that we can develop around 2

billion ton market for the CO2 producers

in the world

yeah absolutely so

um

first thing to consider is that

the world uses a hundred billion gallons

of sustainable aviation fuel ethanol

produced from steel mill gas can be

converted to F to sustainable aviation

fuel so that's a massive Market just if

you consider decarbonizing Aviation so

imagine decarbonizing Aviation with a

solution that also decarbonizes steel

now then if you go beyond that ethanol

can be converted to ethylene ethylene is

the largest commodity chemical used

today in the petrochemical industry it

is the feedstock for almost everything

polyester polyethylene EVA foam this is

everywhere and so there's

hundreds of thousands actually millions

of tons of ethylene derived products

being made every day so we're not gonna

run out of places to do this and as a

second additional Milestone what we're

doing to go beyond which I didn't talk

about at all our original microbe that's

commercial is an actual organism that

we've optimized but we have learned how

to genetically modify the organism to

make acetone which is the basis for

acrylics to make isopropanol which is

the basis for polypropylene medical

plastic

plastic for your cars all of these

things are based on polypropylene so

there's a long journey in being able to

use gases from a steel mill

to make all the products we need I'm not

worried about running out of Market

any more questions

yes

it's a very inspiring you know to see

the the story I'd like to give you an

opportunity to talk a little bit about

when you started and I am interested to

to bring to the attention of everybody

that the transition that Alex was

talking about you know like in 10 years

20 years how in just a few years you

were able to be here with a

demonstration plant right and that gives

us hope that there are more to come

right that other approaches as well that

can be developed that will help us to

get to our Targets in 2050.

um do you want me to to start with that

um so lens attack's been around since

2005. it was founded in New Zealand and

our first commercial plan didn't start

up until 2018 and

it seems like a long time but it's a

really short time for a brand new

technology that nobody had ever done gas

fermentation and so

I want to highlight that we did a lot of

lab experiments but we also did a lot of

pilots and demos before we dared to say

that technology was ready for commercial

and the technology had to be optimized

to reduce the cost because we're making

a commodity material and so we optimized

the

bioreactor the process the vitamins this

has taken us it took 15 years for the

first one we're now on an 18-year

Journey the reason I want to say that is

because we have to be really conscious

of solutions and how much time it takes

to really grow a brand new solution and

I think that's why you asked me the

question it's there's no magic wand out

there that allows the technology to go

from the lab to commercial scale it's

just a lot of hard work a lot of

important Partnerships and and and it's

just a journey and and so I think if

that's what you were asking and I always

like to say that any technology that's

not being commercially practiced today

is not going to contribute in 2030. you

just can't put enough Steel in the

ground you know for us it takes a year

so sometimes to get a compressor for our

first commercial plan so for any

commercial plants so there's just no

shortening this timeline but what we can

do is work together faster to bring

other new technologies out and that's I

think the answer

I don't know if you want to add

yeah I think uh what I still see you

know is with any new technology you know

and we have this famous craft you know

when you go out on the coast side you

know that in the beginning very high the

cost you make the industrial application

but normally you run down and the the

experience you gain through this

industrialization you know then also the

impact and the the cost and the business

model in the future so I think there's

much more potential we see in the

technology and the further development

having this experience from the plants

and I think there we see much more

applications in the future and also

going into those different markets

that's fascinating for me and I think

all people in the steel industry get

when Jennifer talks about all these

chemical terms we all get scared because

it's not our world you know but at the

end we need to learn to with these kind

of terms and this uh this openness going

into different Industries and seeing all

this opportunity that's amazing yeah

thank you we still have time

so please go ahead if you have any

questions

yeah Jennifer you described you know all

the potential Market that could be out

there with steel mill gases right but

what do you think is really the

bottleneck is it really still maturing

that does the technology have to mature

more to get to larger scale or is it

economics of the product if you make

ethanol or whatever you're making is it

the is it the economics of that product

or is it technology or both or what I'm

trying to understand what's the rate

limiting step to get to large scale that

that's a great question and and what I

would say is

um we're gonna have by the end of this

year six commercial plants operating and

to me that's important because the more

you build

the cheaper it gets right the more you

can optimize the technology and reduce

cost and there's no question we have to

reduce costs if we want this to be

everywhere we need to get better at

building them in a way that makes more

economic sense

um so that's the first step

um but I think with every new technology

you eventually get to an exponential

curve I I'm sure you all remember solar

you know in 2010 we were all saying

solar is always going to be 10 years

away now everywhere you look there's a

solar installation and it's because

technology deploys exponentially and so

our goal is to reduce cost enough that

we get to that exponential part of the

curve in the next few years so that then

we're just deploying them massively in

parallel

so I think scale and and getting down

the cost over the two things I would

also say we're at the bottom gas

fermentation is brand new right as a

technology so we're at the bottom of our

learning curve we will we get more

efficient by the time a plant is built

we've got a Next Generation microbin and

Next Generation media recipe so we see

that change happening in real time so

Technology Innovation will be important

as well

there is still room for four questions

if you have anything more yes please go

ahead

hi I am Dinesh from Edom Consulting and

it was a wonderful presentation thank

you for the good discussion uh my

question is your uh you were discussing

about gas fermentation and genetically

modified organic organism

could you please elaborate a little bit

more about the process of this

technology

um

so

I'll I'll go ahead and answer it

um I could have let Sanjeev as well

um so what we do is is gas fermentation

so we have a bacteria that eats hydrogen

carbon monoxide and carbon dioxide and

actually I should say that that that

also makes it really nice for steel

because a steel transitions to hydrogen

from Blast Furnace if you transition in

a location you can still use the same

Reactor with CO2 and hydrogen because

I'm guessing the transition will involve

hydrogen so the bacteria efficiently

eats it it's like making beer from sugar

except instead of yeast we use bacteria

and instead of sugar we use these gases

now this is all done in a continuous

bioreactor you use the fermentation in a

reactor that is a batch you you mix

sugar and yeast and you let it go for

three months ones this happens in

seconds so the gas comes in it's

converted and the ethanol goes out

we recycle the water

we use vitamins and minerals because

just like you bacteria needs more than

just a carbon and and so that's all part

of the process and then the last thing

you should know is we have produced as a

co-product so the bacteria is alive in

this reactor that's full of water it is

dividing so you don't want it to plug

the reactor so you always take bacteria

out when you take the bacteria you dry

it

in China we sell it as animal food in

India we will sell it as animal food

it's protein rich and so it makes a good

co-product so we make ethanol and we

make bacteria that is dried and is a

co-product that is a natural organism

the one that makes ethanol next year

we'll be introducing a genetically

modified organism that we have taught

how to make other chemicals the first

ones will be acetone and isopropanol

and that

is something I get even more excited

about because the reactor that you have

built to make ethanol can also be used

to make other chemicals so you don't

have to build

what was here the arcilla middle reactor

you don't have to build another one you

just say the price of acetone is higher

I'm gonna for the next six months make

acetone instead of making ethanol and

and to me that's very exciting because

you can start imagine local Supply

chains making all the chemicals you need

at the time that you need them it's a

it's a very different way of thinking

about a carbon economy

thank you

we would still have time for one or a

few questions

if there is

anyone

okay one more yes

before that sorry I just I think Mr

manochi I think you have to leave for

your keynote speeches at start right

so I would like to thank you for your

participation and your insights thank

you so much and all the best for your

Keynotes

[Applause]

yes please go ahead thank you my

question is going to be divided in two

things the first one is how long do you

take in order to develop a project the

project with the size or the capacity of

capture and utilization that you have

today and how the ambition to grow to

scale up to a larger

capacity needed for Blast Furnace

capture

I I can start it off so well I would say

it's it's the same thing Jennifer

mentioned well you have to get to get

the first plant into operation you're

still learning curve you get better and

you get quicker you have to standardize

to modularize

and that's the basis that you get a

shorter project timeline yeah so well at

the at the end such type of of projects

are pretty pretty complex so it's large

scale

TurnKey infrastructure projects but what

what can be done for for sure at the end

is a timeline and I hope you agree

Jennifer on that is is around

two and a half years

uh if well they can always come

something in between yeah if we look on

on again twisty pandemic and and

whatever that holds you up here but

let's assume everything runs well it's

modernized optimized two and a half

years uh from uh from signing of the of

the contract till hot commissioning

only other thing I would add is

um the reactors are modular so it's

quite scalable and we've also done some

new reactor developments so now we can

get two times the throughput in the same

reactor size so we're we're constantly

improving but it it's it's a very

scalable process I think

yes I have one more question uh just one

more question this is to Mr Alexander

my question is we talked about green

hydrogen we are talking about ccos and

we also talk about the economics

involved in this

my question is

do you find any risk of any other

Advanced Metal or material could take up

on Steel

to replace steel to replace steel yes no

I don't think so so uh Still Still uh

has come to stay for forever so if you

look on the advancement of the

properties of of Steel it's still an

exponential curve uh just look on

quality of Automotive sheets so the

sheets become much thinner

with small tensile strengths when we

talk about Advanced high steel strengths

we're going now into really hard

materials when we talk about steel for

for uh going into the energy sector

immobility sector so silica silicon

steel at the end and this advancement

will will go for forever so steel is the

material to stay and the main reason is

because it's the only material that you

can

use a secondary raw material again and

again and again so every ton of Steel is

is used multiple times at the end of the

of the life cycle so I don't see any

reason why any other material should

replace steel even on the long term

thank you

thank you for all your questions really

well appreciated

um we would have time for one yes

sorry we have a question from this side

about carbon monoxide you mentioned

before that is a mix between carbon

monoxide and carbon dioxide but this

technology can be based also or which is

the percentage of carbon dioxide and

monoxide or full carbon dioxide this can

be can be used yes so the the way to

think about it is the organism can use

carbon monoxide it has carbon and energy

and so all it needs is carbon monoxide

it uses water to make hydrogen so all it

needs is carbon monoxide

if you have carbon dioxide carbon

dioxide only has carbon it has no energy

so to convert carbon dioxide you have to

bring in hydrogen so then the organism

uses the energy from the hydrogen to

make the products but it makes the same

products carbon monoxide or carbon

dioxide and hydrogen

if um

you have carbon monoxide

and you add hydrogen you just get higher

yields because you don't take any carbon

monoxide to make you know hydrogen right

you don't have to do that and so it's

actually a beautiful system in my mind

because as the steel industry

transitions

first is carbon monoxide

then you start to have some green

hydrogen available now you use the same

system to increase your ethanol yield

you add hydrogen you make more money

more product

and then someday there is no more carbon

monoxide at that site now you use carbon

dioxide and probably the only reason you

can do that is because you've got

hydrogen so you're on a journey of

transition using this so it's it's kind

of cool it's the only way I describe it

but but always think about carbon and

energy in thinking about how the

organism works

any more questions

so if not I would like to thank you all

for participating

and follow all your questions of course

and a special thanks to our panelists

here as well for sharing your insights

thank you so much

[Applause]