OREANDA-NEWS. October 27, 2011. A grand commencement ceremony was convened for the demonstrative ethanol-fuel project of Shanghai Baosteel LanzaTech New Energy Company Ltd. in Luojing Area of Baosteel’s Energy & Environment Division on September 22, 2011. This event marked that the world’s first waste-gas ethanol-fuel project was started, which was jointly contracted by the Engineering Technology Co., Ltd. of Shanghai Baoye Construction Group (SBC-MCC Group), New Zealand-based LanzaTech, Baosteel Metal Co., Ltd., Baosteel Engineering Technology Co., Ltd. and Baosteel Construction Supervision Company. The relevant leaders and experts were present at the ceremony and delivered speeches, reported the press-centre of MCC.

At present, the waste gas discharged from the plants of Baosteel is mainly used for power generation, which is recognized as an operation of low added value. If utilizing such waste gases to produce ethanol by means of biotechnology, however, the added value is anticipated to be three times over than the previous method. As one of the new energy materials, ethanol is usually produced by using the traditional grain-based process. If industrialization can be achieved for the biotechnological production of ethanol, the cost will be deducted by 30%-40% than that of traditional process. In the future, all the mill off-gases of Baosteel will be utilized for ethanol production, with an estimated annual output of 1-2 million tons.

 The current steel output of China accounts for a half of the whole world. If this technology is popularized in all the Chinese steel works, sustainable contribution will be made to satisfy the new energy demands of China. The ethanol-fuel project of Shanghai Baosteel LanzaTech New Energy Company Ltd., which is under collaboration between Baosteel Metal Co., Ltd. and LanzaTech, will be developed as the very first project for fuel ethanol generation through waste gas. After completion, the waste gases (mainly consisting of carbon monoxide and hydrogen) discharged by blast furnace, converter and coke oven can be converted, in an economic and sustainable manner, into fuel ethanol for airplane and auto.