Baosteel and LanzaTech signed the partnership agreement and the three way research alliance agreement with CAS Bureau of Life Science and Technology on June 20.

As a part of the agreement, Baosteel Metal and LanzaTech will construct a demonstration plant at one of Baosteel’s steel mills, followed by the construction of the fully commercial plant. The demonstration facility is expected to be in operation in the second half of 2011.

LanzaTech and Baosteel will work in close cooperation with CAS scientists to accelerate the deployment of proprietary technology to develop fuel ethanol from gases produced by the steel industry and to conduct joint research for the development and commercialization of related technologies.

Zhou Ping, vice president of Baosteel, said: “Baosteel has been aware of the steel industry’s trend towards new low carbon technologies in the field of sustainability. LanzaTech’s technology will enable Baosteel to move further in this new direction by converting steel mill off gases to ethanol.”