Siemens Metals Technologies has inked a ten-year co-operation agreement with LanzaTech to develop and market environmental solutions that convert waste industrial gases into low carbon bio-ethanol.

As per the agreed terms, the alliance will use fermentation technology developed by LanzaTech to transform carbon-rich off-gases generated by the steel industry into low carbon fuel and other platform chemicals.

Commenting on the partnership, LanzaTech CEO Jennifer Holmgren said the carbon emissions from steel mills can be transformed into a new source of sustainable energy, by lowering emissions.

Siemens Metals Technologies senior vice president Norbert Petermaier said, "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."

According to the company, the patented biological fermentation process will enable the steel plant operators to make use of the chemical energy contained in off-gases in the form of CO, CO2 and H2 for the sustainable production of bio-ethanol or other basic chemicals such as acetic acid, acetone, isopropanol, n-butanol or 2,3-butanediol.

Currently, the annual global market for ethanol alone is anticipated to be around 80 million metric tons, of which 75 million metric tons is used as bio-fuel.