Brookfield Renewable invests initial $500m in carbon recycler LanzaTech

The funding will be used to build new commercial-scale production plants that will employ LanzaTech’s CCT technology.

  • The investment was made by Brookfield Global Transition Fund
  • Brookfield could commit to making an additional $500 million available for investments if sufficient projects are available at the agreed milestones
  • It will also invest $50 million in LanzaTech to support further corporate development

LanzaTech, a Skokie, Illinois-based carbon capture and transformation business that transforms waste carbon into materials, has secured an initial $500 million investment from Brookfield Renewable.

The funding will be used to build new commercial-scale production plants that will employ LanzaTech’s CCT technology, which transforms captured carbon into valuable raw material commodities.

The funding will be provided through the $15 billion Brookfield Global Transition Fund (BGTF), which is 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. It could commit to making an additional $500 million available for investments in the strategic partnership if sufficient projects are available at the agreed milestones. The firm 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,” said Natalie Adomait, a managing partner and chief investment officer of BGTF, in a statement. “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.”

As previously announced, LanzaTech has inked an agreement to merge with blank check company AMCI Acquisition Corp. II. When the deal closes, the newly combined company is expected to trade on Nasdaq under the ticker symbol “LNZA.”

Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a Toronto-based alternative asset manager with approximately $750 billion of assets under management.