US-based sustainable chemicals and fuel producer LanzaTech received a $72m series E investment from pharmaceutical firm Novo Holdings on Tuesday in connection with a strategic partnership.
LanzaTech has created a system that converts waste and residues into fuels such as ethanol, as well as chemicals such as butadiene and propylene using a gas fermentation process.
Proceeds from the investment will be used to accelerate the development of LanzaTech’s carbon recycling platform and commercialise its carbon smart products. Anders Bendsen Spohr, senior director of principal investments for Novo, has joined its board of directors in conjunction with the deal.
Bendsen Spohr said: “LanzaTech is addressing our collective need for sustainable fuels and materials, enabling industrial players to be part of building a truly circular economy. Novo Holdings’ investment underlines our commitment to supporting the bio-industrials sector and, in particular, companies that are developing cutting-edge technology platforms.”
The company has now raised more than $270m to date. It closed a $120m series D round in 2014 that included $60m from New Zealand Superannuation Fund as well as $20m from conglomerate Mitsui and additional cash from industrial technology and appliance manufacturer Siemens.
Financial services firm China International Capital Corporation, Khosla Ventures, Qiming Venture Partners, K1W1 and Malaysian Life Sciences Capital Fund also contributed in the series D round.
The latter four had already participated in a $55.8m series C round in 2012 that included industrial services provider Dialog Group and Petronas Technology Ventures, a corporate venturing of petroleum supplier Petronas.