AUCKLAND, New Zealand--(BUSINESS WIRE)--LanzaTech and one of the largest coal producers in China, Henan Coal and Chemical Industrial Corporation (HNCC), have signed a memorandum of understanding (MoU) for the production of fuels and chemicals.

Ethanol fuels and chemical products will be produced through the integration of coal gasification and LanzaTech’s biological fermentation process.

The MoU was signed during a ceremony held in the capital of Henan province, Zhengzhou, with the deputy secretary general of the Communist Party of CAS Ms Fang Xin and the Vice-Governor of Henan Province Mr Xu Jichao attending.

Also signed was a separate three way letter of intent regarding the establishment of a Bio Energy Research Centre for the development, pilot production and commercialization of the technology to change coal derived synthesis gas to ethanol fuels and chemicals.

The research centre, supported by multiple research institutes under CAS, will focus on developing important complementary process technologies, like product separation, water conservation and process integration. The research centre will also focus on developing other high value added technology and products.

LanzaTech has already successfully proven that its proprietary gas fermentation platform can be used to convert biomass syngas at laboratory scale. It is envisaged the demonstration facility will be operational by the second half of 2011.

Dr Jennifer Holmgren, LanzaTech’s CEO, said the Henan MOU demonstrates the continued commitment of China to the development and usage of clean energy. Early adoption of these technologies will enable China to become a leader in green energy manufacturing and use.

“Our partnership with Henan Coal and Chemical and the Chinese Academy of Sciences will help reduce the CO₂ footprint of China’s coal industry,” Dr Holmgren said.

Henan Coal and Chemical Industrial Corporation is a China fortune 500 company. In 2009 it was ranked the number two coal company in China and was positioned as the number one company in China for growth. Based in China’s largest province, Henan, the company holds a diverse portfolio including coal, chemical and non ferrous metal industries. It is the biggest company converting coal to syngas in Asia.