The trial facility, which produces ethanol from unused blast furnace gas, was set up in H2 2012. But the plant, which is attached to Shougang Jingtang's steelworks, suffered technical problems with its blast furnace, resulting in reduced output and subsequent maintenance work which began in February. The site has a steelmaking capacity of 10 million mt/year.
Both Shougang and Tangshan Iron and Steel -- a subsidiary of state-owned Hebei Iron and Steel -- could begin construction of commercial-scale gas-to-ethanol plants in 2013 or 2014, the LanzaTech spokesman said. But details such as the capacity or cost of the plants were not available.
There are currently no commercial-scale gas-to-ethanol plants globally.
Tangshan Iron and Steel announced in March that it had signed an agreement to invest $70 million with Harsco, a partner of LanzaTech, to build a commercial-scale plant using the same technology. The 30,000 mt/year facility is due to come online next year, pending government approval.
LanzaTech has a proprietary gas fermentation technology that makes ethanol from unused blast furnace gas, and the New Zealand-based renewable energy company has agreements with Harsco and Siemens VAI to supply its technology to steelmakers, the spokesman said.
LanzaTech is currently seeking some $60-70 million in funding to further research and development, he said. The goal is for its process to develop the capability to produce more complex petrochemical products as well as fuel-grade ethanol, he added.
The company is also seeking international certification to enable it to sell more easily globally, with inspectors from European and US authorities expected to visit the plant at Jingtang in the coming months, the spokesman said.
China's state-owned Baosteel was the first steelmaker globally to set up a waste gas-to-ethanol pilot project in March 2012. The 100,000 mt/year facility in Shanghai was shut in September last year -- as two iron making units were moved to the company's operations in Xinjiang -- but Baosteel plans to build larger commercial-scale plants, pending government approval, a source at LanzaTech said previously.
The source added that Baosteel was continuing to reduce the capital expenditure and operating costs of the technology in order to turn it into a commercially-viable investment, freeing it from the need for government support.
