OREANDA-NEWS. April 04, 2011. The opening ceremony of "Baosteel/LanzaTech/CAS Demo Project of Ethanol Production from Off-Gases" is held in Shanghai. This is the first later stage pilot project in the world to produce ethanol from steel plant Off-Gases. This project uses state-of –the-art Bio-energy technology to collect the Off-Gases from the world's biggest COREX iron-making device to produce ethanol by means of bio-technology, reported the press-centre of Baosteel.

After the project is completed, the produced ethanol could be mixed with gasoline for use and it also important raw materials for high value-added chemical products.

Former British PM and consultant of LanzaTech Company Mr. Blair, President of CAS Mr. Bai Chunli, Shanghai Deputy Mayor Mr. Ai Baojun, Baosteel Group GM Mr. He Wenbo, President of LanzaTech Company Mr. Khosla and CEO Dr Jennifer Holmgren and representatives from U.S.A. and New Zealand embassies to China and other guests also attended to the opening ceremony of this demo project. The ceremony is hosted by President of Baosteel Metal Mr. Jia Yanlin.

LanzaTech from New Zealand is a specialized company that develops gas fermentation technologies and uses recyclable and non-food resources including industry fume gases and other waste gases to produce ethanol and high value chemicals and perform commercialization of this technology. LanzaTech develops ethanol production technology from steel mill off-gases which is a world leading bio-energy technology and makes full use of the steel mill off-gases and plays a vital and positive role for carbon emission reduction in the iron and steel industry. This February one contract is signed between LanzaTech and Baosteel Metal and China's first hi-tech company of off-gases cycled general use, Shanghai Baosteel LanzaTech New Energy Company Ltd, has been set up to start the 3 million MT ethanol demo project. As the demo project successfully achieved its targets, both parties shall commence some commercial production facilities at appropriate occasions to realize industrial development and nation wide promotion. The construction period of "Baosteel/LanzaTech/CAS Demo Project of Ethanol Production from Off-Gases" is estimated to be 6 months and is scheduled to be completed and put into operation in 3rd quarter this year.

In the opening ceremony, Mr. He Wenbo noted that aiming at building a world class clean iron and steel company, Baosteel presented a "environmental operation" strategy which shall turn "better steel, better environment and better life" into reality by adopting low carbon route in a high carbon industry. "Baosteel/LanzaTech/CAS Demo Project of Ethanol Production from Off-Gases" not only responds to the national new energy development plan but also comply with the energy saving and emission reduction national strategy and it is of tremendous potential. We believe that the successful application of this project shall bring about positive influence towards energy saving and emission reduction of world steel industry and facilitating China's new energy industry development.

Mr. Bai Chunli said in his speech that the collaboration between Baosteel, LanzaTech and CAS to construct the demo plant to transform steel mill flue gas into fuel ethanol using biotechnology, together with CAS film separation technology and fermentation process, will blaze a new trail in the development of bio-energy. The demo project started today is an significantly favorable thing in the commercialization of our country's bio-energy business. This is also a new trial of internationalization of CAS "plan for bio-tech innovation and bio-industry promotion" and this shall undoubtedly advance the development and application of our country's clean bio-energy technology.

Mr. Blair gave a passionate lecture in the opening ceremony. He said that it is a global challenge to reduce energy consumption and carbon emission. The project of producing ethanol from steel mill off-gases is a very important technical innovation. Today the opening of the demo project unveils the new page of three parties commonly coping with the challenge and establishing technical innovation partnership as well as us making a fair commitment to the future. For China as well as for the world, it is of tremendous meaning. He noted in the ending that we should take each other's hands to strive for a better, more prosperous and cleaner world.