Using this technology, the companies will process carbon monoxide and carbon dioxide from steel mills into low-carbon fuels and chemicals such as acetic acid, acetone, isopropanol, n-butanol or 2,3-butanediol.

The biological fermentation process re-uses the off-gases from converter, coking plant or blast furnace processes as nutrients and a source of energy.

Commenting on its technology, LanzaTech CEO Jennifer Holmgren said the carbon emissions from steel mills can be used as source of renewable energy, besides reducing emissions.

"We are delighted to be partnering with Siemens to deliver integrated solutions that improve the value and environmental footprint of the global steel industry," added Holmgren.

Siemens Metals Technologies senior vice president Norbert Petermaier noted: "LanzaTech’s unique CO/CO2 bio-fermentation is exactly such an opportunity and fits perfectly together with the leading position of Siemens as green solution provider for the Industry."

LanzaTech, meanwhile, is set to launch two commercial facilities employing the fermentation process in China in 2013 with production expected in 2014.