Shanghai: LanzaTech and Yankuang Group, one of China’s largest coal producers, are to produce fuels and chemicals using LanzaTech’s biological fermentation process and synthesis gas from Yankuang’s coal gasification unit.

The companies signed a Memorandum of Understanding (MoU) in front of US Ambassador Gary Locke as part of a US Trade Mission to Shandong Province, which included Dr James Zhang, LanzaTech’s VP of Business Development.

LanzaTech has already successfully proven its proprietary gas fermentation platform can be used to convert biomass syngas at laboratory scale and envisages a demonstration facility will be operational by the second half of 2012.

Dr Zhang says the agreement with Yankuang highlights China’s commitment to the development of clean energy solutions.

“Deployment of this technology throughout China presents an exciting opportunity for promoting sustainable industry and we see China’s lead in this as reflective of its continued commitment to green growth,” he says.

Mr  Zhang Minglin (张鸣林), Group Vice-President of Yankuang Group, said after the MoU signing: “Our goal is to adjust coal chemical production structure and increase the efficiency of our process, by reducing our carbon footprint while maintaining growth. There is increased interest in China in coal-chemical development that is in line with China’s energy and environmental plan.”

As the world’s largest producer and consumer of coal, China is an ideal location for LanzaTech’s coal-fuels and chemicals technology.