Mitsui & Co., Ltd. ("Mitsui", Head office: Tokyo, President and CEO: Tatsuo Yasunaga), has resolved to acquire an equity interest in China-based next-generation ethanol producer Beijing Shougang LanzaTech New Energy Technology (SGLT). After obtaining the appropriate licenses and permissions, Mitsui plans to invest 60 million RMB (approximately ¥900 million) in SGLT via a third-party allotment implemented by the company.
SGLT is the world's first commercial-scale producer of next-generation ethanol using waste gas from steelworks as a raw material. The company uses technology that converts waste gas into fuel and chemicals by microbial fermentation, which has been developed by US-based LanzaTech, Inc. (LT), a company that received investment from Mitsui in 2014. Through participation in SGLT's management, Mitsui will support the reinforcement of SGLT's business foundations, and will contribute to further business expansion in China utilizing its own extensive business network.
Mitsui is also working on the development of a business specialized in the production of Sustainable Aviation Fuels (SAF) using LT's proprietary technology. Momentum surrounding SAF is gaining globally due to its positioning as a valuable resource for the reduction of CO2 emissions in the aviation field beyond 2030. On October 30, Mitsui joined its SAF development partner All Nippon Airways Co., Ltd. ("ANA"; Head Office: Tokyo, CEO: Yuji Hirako) to successfully carry out a delivery flight of a new ANA Boeing 777-300ER utilizing SAF, from Everett, Washington to Haneda Airport in Tokyo. The SAF used during this delivery flight was produced by LanzaTech and derived from next-generation ethanol produced by SGLT.
Mitsui is aiming to be the first in Japan to produce SAF on a commercial scale, and is leading a three-way partnership with ANA and JXTG Nippon Oil & Energy Corporation (Head Office: Tokyo, President: Katsuyuki Ota) that has been commissioned by the New Energy and Industrial Technology Development Organization to carry out a business feasibility study pertaining to the development of an SAF supply chain, utilizing LanzaTech's ATJ platform.
Mitsui is promoting the foundational development of environment and health related businesses, as well as the expansion and cross-sectional development of peripheral businesses. Utilizing LT's proprietary technologies, Mitsui's aim is to achieve a low carbon society extending from Asia to the world and contribute to solutions for global warming and other global-scale issues currently faced by society.
Outline of SGLT
|Official name||English name: Beijing Shougang LanzaTech New Energy Technology|
|Business outline||Production of ethanol for fuels and chemicals using waste gas from steelworks and refineries|