Dr. Christophe Mihalcea Industrial waste gases and the circular economy. Advanced Bioeconomy Feedstocks Conference New Orleans June 2015

Use Carbon where Required

Recycle to Reduce Pressure on Reserves Steel Aluminum Glass Plastic Carbon C Ore Alum Minerals Oil Oil Carbon Reduction through Re-use and Recycling Carbon Reduction through Re-use and Recycling A 2-degree carbon budget will require countries to leave 80 % of coal, 50 % of gas and 33 % of global oil untouched. Organization for Economic Growth and Development, Nature

C The LanzaTech Process is Driving Innovation Gas Feed Stream Gas Reception Compression Fermentation Recovery Product Tank Novel gas fermentation technology captures CO-rich gases and converts the carbon to fuels and chemicals Proprietary Microbe Process recycles waste carbon into fuels and chemicals Process brings underutilized carbon into the fuel pool via industrial symbiosis Potential to make material impact on the future energy pool (>100s of billions of gallons per year) Innovative: gases are sole source of energy Proprietary: 60 patents, including two proprietary microbe patents Integrative: Direct production of fuels and chemicals (2,3 Butanediol, Isoprene, Propanol, Butanol, MEK); multi step production of chemicals and chemical intermediates (olefins) Thermo Chemical Opportunities: 2,3 Butanediol produced through the LanzaTech Process can be used to make true “Drop in” hydrocarbon fuels (gasoline, diesel, jet fuel). The LanzaTech (LT) process converts waste gas from steel mills to ethanol. These steel mill gases are often flared and emitted as CO2. By producing fuel from these waste gases, the LT process addresses critical sustainability issues related to land use and competition with food: it requires no land other than existing industrial facilities to co-locate plants and its carbon resource is entirely independent of the food chain. C

Waste carbon streams as a Resource Industrial Waste Gas Steel, PVC, Ferroalloys Biogas LFG, Methane Solid Waste Industrial, MSW, DSW Biomass CO2 ~ 1.4B MTA (Steel only) * ~184.2T M3 * >2B MTA * >1.3B MTA (US Alone) * Reforming Gasification Renewable H2 Renewable Electricity CO CO + H2 CO + H2 + CO2 CO2 + H2 CO2 + H2O + e- Gas Fermentation Available High Volume/Low Intrinsic Value Most Point Sourced Non-Food *2010 global production; 2012 proven gas reserves data (IEA, UNEP, IndexMundi, US DOE Billion Ton Update)

Steel Gases: 30Bn Gal Ethanol Capacity Iceland RUSSIA 1,830 USA 925 W. EUROPE 4,870 Russia CHINA 10,800 S. KOREA 1,270 Kazakhistan United States E. EUROPE 1,300 China JAPAN 3,750 Mexico Thailand BRAZIL 955 INDIA 1,315 Indonesia Brazil Australia Argentina Country TOTAL 27,015 MMGPY Potential Ethanol Production Capacity (MMGPY) Steel Mills (>5 MT/year) 6

Proprietary Acetogenic Biocatalyst Acetogenic bacterium with ability to utilize gases as sole energy and carbon source CO CO+H2 or CO+CO2+H2 CO2+H2 LanzaTech has developed a proprietary strain of Clostridium autoethanogenum Obtained by extensive natural selection program, having improved characteristics over parent High gas uptake and ethanol production rates Fast growth on defined minimal media Non-sporulating and non-motile Sequencing revealed several variations to parent 1 Deletion Variation Insertion Rearrangement 7

Per tonne of LanzaTech Ethanol Why does it matter? 1 tonne ethanol produced as CO averted from flare 5.2 barrels of gasoline are displaced by every tonne of ethanol produced CO2 Gas Feed Stream Gas reception Compression Fermentation Recovery Product tank The LanzaTech Process CO Per tonne of LanzaTech Ethanol CO2 MT kg PM kg NOx Averted from flare 2.1 0.6 4.1 Displaced gasoline +0.5 +2.5 +7.4 Energy required for LanzaTech Process -0.8 -0.2 Avoided per tonne of ethanol 1.8 2.9 10.7

Recycling Waste Gases Produces Low Carbon Fuels Reduce GHG Emissions 50-70% GHG Reduction over Petroleum Gasoline Conventional Gasoline LanzaTech Ethanol 120 100 80 60 40 20 gCO2 e/MJ Life Cycle GHG Emission 90 33 Reduce Air Pollutants >85% reduction in NOx and Particulate Matter compared to combustion at a typical US steel mill Life Cycle Analyses (LCA) performed in cooperation with , Michigan Tech University,, Roundtable on Sustainable Biomaterials (RSB), E4Tech, and Tsinghua University

Broader Environmental Impact LanzaTech Process emits ~40% less NOx and ~80% fewer particulates than electricity generation per MJ energy recovered NOx & Particulates Steel Mill Steel production Waste Gases Grid Electricity Generation Electricity LanzaTech Process emits 33% less CO2 than electricity generation per MJ energy recovered LanzaTech Process Ethanol Gasoline Pool Carbon is Only Part of the Story

The LanzaTech Process: Ready for Deployment Today Gas Feed Stream Gas Reception Compression Fermentation Recovery Product Tank Proprietary Microbe Gas fermentation technology converts C-rich gases to fuels and chemicals 40,000 combined hours on stream Multiple runs exceeding 2000 hours Talk about importance of being able to restart after shut down periods (true refining operation) Innovative: gases are sole source of energy Proprietary: 60 patents, including two proprietary microbe patents Integrative: Direct production of fuels and chemicals (2,3 Butanediol, Isoprene, Propanol, Butanol, MEK); multi step production of chemicals and chemical intermediates (olefins) Thermo Chemical Opportunities: 2,3 Butanediol produced through the LanzaTech Process can be used to make true “Drop in” hydrocarbon fuels (gasoline, diesel, jet fuel). The LanzaTech (LT) process converts waste gas from steel mills to ethanol. These steel mill gases are often flared and emitted as CO2. By producing fuel from these waste gases, the LT process addresses critical sustainability issues related to land use and competition with food: it requires no land other than existing industrial facilities to co-locate plants and its carbon resource is entirely independent of the food chain. Multiple plants at various scales demonstrating different key aspects of process

Pre commercial steel mill demonstrations Performance milestones exceeded First commercial in design; fully financed in China Exceeded design capacity Local chemicals, water Shougang WBT (CSC/LCY) Mitigating Scale up Risk through Successful Technology Demonstration Bao Glenbrook

Performance milestones achieved and exceeded for >1000 hours The LanzaTech Process Gas Feed Stream Gas Reception Compression Fermentation Recovery Product Tank C Proprietary Microbe Gas fermentation technology converts C-rich gases to fuels and chemicals Innovative: gases are sole source of energy Proprietary: 60 patents, including two proprietary microbe patents Integrative: Direct production of fuels and chemicals (2,3 Butanediol, Isoprene, Propanol, Butanol, MEK); multi step production of chemicals and chemical intermediates (olefins) Thermo Chemical Opportunities: 2,3 Butanediol produced through the LanzaTech Process can be used to make true “Drop in” hydrocarbon fuels (gasoline, diesel, jet fuel). The LanzaTech (LT) process converts waste gas from steel mills to ethanol. These steel mill gases are often flared and emitted as CO2. By producing fuel from these waste gases, the LT process addresses critical sustainability issues related to land use and competition with food: it requires no land other than existing industrial facilities to co-locate plants and its carbon resource is entirely independent of the food chain. Performance milestones achieved and exceeded for >1000 hours

1 Organism, over 20 Products… Lab Scale Process Scaled-Up Process Discovery Biodiesel (FAEE) 3-Hydroxypropionate (3-HP) CO/H2 Fatty Acids, Terpenoids Aromatics Jet Fuel Isoprene Aromatics Pyruvate Partnerships Butylene 1,3-Butadiene Biopolymers Succinate Lactate Methyl Ethyl Ketone (MEK) 2-Butanol Acetoin 1,2-Propanediol 1-Propanol Amino Acids 2,3-Butanediol (2,3-BDO) Acetyl-CoA Ethanol Acetate Isopropanol Acetone 1-Butanol 1,3-Butanediol (1,3-BDO) Butyrate 3-Hydroxy Butyrate (3-HB)

C4 Chemicals from Gases: BDO/Butadiene Two Step Route: 1. Butanediol production CO + H2 OH H3C CH3 2,3-Butanediol Reductive Elimination Catalytic Dehydration 1,3-Butadiene Methyl Ethyl Ketone (MEK/Butanone) Butenes 1-Butylene (But-1-ene) 2-Butylene (But-2-ene) Isobutylene (2-Methylpropene) H C CH2 CH3 1 2 3 4 H3C H3C-CH2-C O 2. Catalytic conversion Direct route: Developing a Butadiene producing organism New Route to C4s Without Current Supply Challenges 15

New pathways: CO2 as Carbon Source

Lipid Product Markets Acetate to Lipids Algae/Yeast Biomass Long Chain Hydrocarbon Transport Fuels >US $ 3 trillion/year Algae/Yeast Biomass Animal Feeds US $370 billion/yr Long Chain Fatty Acids Omega 3 Fatty Acids Acetate to Lipids Omega 3 Fatty Acids Food, Nutritional Supplements US $25 billion/yr Medium/Long Chain Fatty Acids Oleochemicals US $15 billion/yr

Conversion of Acetic Acid to Lipids H2 Acetate Carbon Source Energy Lipid Profile of Yeast using Acetate Lipid Profile of Algae using Acetate Lipids are predominantly saturated C16 & C18 Direct feed, no purification Work done in a collaboration with Advanced Bio-Energy Research Centre at Indian Oil Corporation - IOC. Strains identified that grow of LanzaTech broth using acetate as the sole source of carbon and energy. Algae accumulate lipids to >50% of their cell mass. 25% of lipids content are Omega-3 fatty acids (Specifically DHA). Work done in a collaboration with Prof Kent Zhao of the Dalian Institute of Chemical Physics. Strains identified that grow of LanzaTech broth using acetate as the sole source of carbon and energy. Yeast accumulate lipids to >70% of their cell mass. Yeast algae 2nd fermentation Acetate to Lipid conversion by yeast or algae Patent filed, optimization underway

Acetic acid production from H2/CO2 using A Acetic acid production from H2/CO2 using A. woodii in LanzaTech’s single fermenter system setup Step change in achievable acetate broth concentration (from 2.5 to 4wt%) Optimized media recipe Stable high level production Acetic acid production rates at 180g/L/d at a concentration of 30g/L were achieved in single fermenter system. Selectivity of acetic acid is ~95% as no other products apart from biomass is produced

Lipid composition of acetate–fed algae Acetate consumption rates: ~80g/L/d Lipid Composition: Constant across dilution rates Consistently ~22% of lipids = DHA omega-3 fatty acid

“Electrosynthesis” the next step for LanzaTech CO2 e- electrical energy LanzaTech converts CO2 and electrons to products with no run-off, land use change, or environmental uncertainty issues associated with crops Crops convert CO2 and solar energy in to Biomass Biomass Wind Solar Sources of electrons: Bacteria that use gases such as CO2 as their source of carbon derive the energy needed from electrons. LanzaTech bacteria can ferment CO2 and H2 LanzaTech have shown enhanced reactor performance with electron-assisted fermentation (Patent application: US61/295,145) Prof. Derek Lovley at U Mass (Amherst) is the leading researcher in this “electrofuels” field Prof. Lovley and LanzaTech are establishing a joint research effort (government funded) in this area This work is a natural extension of the microbial, synthetic bio, and engineering work being undertaken on the LanzaTech platform Natural feedstock extension of the LanzaTech Platform technology

LanzaTech Global Partnerships