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LanzaTech, Technip Energies to Receive Up to $200M Investment from DOE
LanzaTech, Technip Energies to Receive Up to $200M Investment from DOE

LanzaTech, Technip Energies to Receive Up to $200M Investment from DOE

  • 27-Mar-2024 12:44 PM
  • Journalist: Yage Kwon

On March 25, 2024, Technip Energies (PARIS: TE) and LanzaTech Global, Inc. were chosen by the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations to commence negotiations for potential funding of up to $200 million under the Bipartisan Infrastructure Law and Inflation Reduction Act (IRA). This investment falls under the Industrial Demonstrations Program (IDP). The initiative, named SECURE (Sustainable Ethylene from CO2 Utilization with Renewable Energy), aims to pioneer a groundbreaking technology for producing sustainable ethylene from captured carbon dioxide (CO2).

Technip Energies and LanzaTech introduced a Joint Collaboration Agreement in July 2023, focused on promoting this innovative method for sustainable ethylene production at a commercial level. Ethylene, a crucial chemical with an estimated market value projected to reach $200 billion by 2030 and a global demand exceeding 231 million tons annually, serves as the fundamental building block for a myriad of chemicals and materials, earning it the moniker of the "world's most important chemical."

The envisioned technology will be engineered in the United States for seamless integration into existing commercial ethylene crackers. It will leverage captured CO2 emissions from the process, converting them into sustainable ethylene. Arnaud Pieton, CEO of Technip Energies, expressed pride in the selection by the DOE, emphasizing the collaborative effort with LanzaTech to develop and validate this breakthrough technology at scale, with the potential for replication in other facilities. Dr. Jennifer Holmgren, CEO of LanzaTech, hailed the DOE's Industrial Demonstrations Program as a manifestation of climate leadership in practice and looked forward to crafting a replicable solution with Technip Energies that fosters job creation and supports local communities in their transition towards cleaner energy.

If the funding is secured, the allocated $200 million is expected to cover the design, engineering, construction, and equipment procurement for a commercial-scale integrated technology unit in the United States. Leveraging Technip Energies' extensive industry expertise, this integrated solution holds significant potential for replication across ethylene crackers worldwide. Currently, there are around 370 ethylene steam crackers worldwide, with Technip Energies' technology employed in over 40% of them, including eight facilities located in the United States.

Project SECURE anticipates creating 200 construction jobs and 40 permanent positions with benefits and training opportunities. Upon finalizing the site selection, the project aims to prioritize hiring from the local community, particularly individuals from disadvantaged backgrounds. Technip Energies and LanzaTech plan to engage community groups, unions, and labor organizations to negotiate agreements ensuring quality job creation and fostering community collaboration at the designated site.

The project stands among 33 initiatives spanning more than 20 states selected to receive funding totaling up to $6 billion. These projects are geared towards demonstrating commercial-scale decarbonization solutions aimed at transitioning energy-intensive industries towards achieving net-zero emissions, while concurrently bolstering local economies, creating sustainable employment opportunities, and mitigating harmful emissions detrimental to public health.

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