Technip Energies and LanzaTech Selected by the US Department of Energy to Receive $200M Investment for Breakthrough, Replicable Decarbonized Ethylene Commercial Facility
- Technip Energies and LanzaTech selected for up to $200 million award by the U.S. Department of Energy.
- Project SECURE to develop sustainable ethylene production technology from captured CO2.
- Global demand for ethylene exceeds 231 million tons per year, creating a $200 billion market by 2030.
- Joint technology to capture CO2 emissions and convert them into sustainable ethylene at commercial scale.
- Expected to create 200 construction jobs and 40 permanent jobs with benefits and training opportunities.
- Selected as one of 33 projects to receive up to $6 billion for commercial-scale decarbonization solutions.
- None.
Insights
The announcement of Technip Energies and LanzaTech potentially receiving up to $200 million from the Department of Energy is a significant development for the energy sector. This funding is earmarked for the Industrial Demonstrations Program, which focuses on advancing decarbonization technologies. The project, named SECURE, is particularly noteworthy because it targets the production of sustainable ethylene, a chemical with substantial market demand and environmental impact. Ethylene is not only a high-volume product but also a significant source of industrial CO2 emissions.
The collaboration between Technip Energies and LanzaTech presents a potentially disruptive technology in the chemical industry. If successful, the ability to produce ethylene from captured CO2 could significantly reduce the carbon footprint of the chemical sector. This project aligns with global trends towards sustainability and could have a ripple effect on ethylene production methods worldwide. Investors and stakeholders in the chemical and energy sectors should monitor the progress of this project closely, as it could lead to shifts in market dynamics and offer competitive advantages to early adopters of this technology.
The DOE's selection of the SECURE project underlines a strategic shift in U.S. energy policy towards aggressive decarbonization. The Bipartisan Infrastructure Law and Inflation Reduction Act funding is a clear indication of the federal government's commitment to supporting innovations that can lead to a sustainable economy. The policy implications are substantial, as the government is actively incentivizing the private sector to develop and implement green technologies.
From an environmental policy standpoint, the success of SECURE could set a precedent for future industrial decarbonization efforts. By focusing on a chemical that is a key component for many industries, the project has the potential to catalyze broader changes across various sectors. Furthermore, the emphasis on creating high-quality jobs and engaging with local communities, especially those that are disadvantaged, reflects a holistic approach to environmental policy that seeks to balance economic development with social equity and environmental stewardship.
The projected market size for ethylene by 2030 underscores the economic significance of the SECURE project. Ethylene's role as a foundational chemical for numerous products means that any advancements in its production process could have far-reaching implications. The integration of this technology into existing infrastructure, specifically commercial ethylene crackers, suggests a lower barrier to adoption, which could accelerate market penetration and acceptance.
Additionally, the potential for replication of this technology, as indicated by Technip Energies' existing market share in ethylene steam crackers, could lead to widespread adoption and standardization of sustainable ethylene production. This would not only benefit the environment but could also provide a competitive edge to early adopters. For investors, the long-term prospects of this technology could be quite promising, given the growing demand for sustainable products and the global push for industrial decarbonization.
HOUSTON, March 25, 2024 (GLOBE NEWSWIRE) -- Today, Technip Energies and LanzaTech Global, Inc. (NASDAQ: LNZA) were selected by the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations to begin award negotiations for up to
The project SECURE – standing for Sustainable Ethylene from CO2 Utilization with Renewable Energy – aims to develop a transformational technology to produce sustainable ethylene from captured carbon dioxide (CO2). Technip Energies and LanzaTech announced their Joint Collaboration Agreement to create this new pathway to sustainable ethylene at commercial scale in July 2023.
Estimated to reach a
Arnaud Pieton, CEO at Technip Energies, stated: “We are extremely proud to have been selected by the DOE for this significant award consideration. Together with LanzaTech, our plan is to fully test and develop this breakthrough technology, at scale, in an actual plant, which can then be replicated in other facilities. Carbon utilization and the ability to decarbonize ethylene will have a significant impact on the chemicals industry’s emissions abatement, which is a benefit to us all.”
Dr. Jennifer Holmgren, CEO of LanzaTech, said: “The DOE’s Industrial Demonstrations Program is climate leadership in action. We look forward to developing a replicable, breakthrough solution with Technip Energies that creates high-quality jobs and supports local communities for a just energy transition.”
U.S. Secretary of Energy Jennifer M. Granholm said: “Spurring on the next generation of decarbonization technologies in key industries like steel, paper, concrete, and glass will keep America the most competitive nation on Earth. Thanks to President Biden’s industrial strategy, DOE is making the largest investment in industrial decarbonization in the history of the United States. These investments will slash emissions from these difficult-to-decarbonize sectors and ensure American businesses and American workers remain at the forefront of the global economy.”
If awarded, up to
Project SECURE expects to provide 200 construction jobs and 40 permanent jobs with benefits and training opportunities. Once the site is finalized, the project aims to hire from the local area with a focus on residents of disadvantaged communities. Technip Energies and LanzaTech plan to approach community groups, unions, and labor groups to negotiate, review, and update agreements for quality jobs and community collaboration at the host site. The project was selected as one of 33 projects across more than 20 states to receive up to a total of
Learn more about IDP and projects selected for award negotiations here.
About Technip Energies
Technip Energies is a leading Engineering & Technology company for the energy transition, with leadership positions in LNG, hydrogen and ethylene as well as growing market positions in blue and green hydrogen, sustainable chemistry and CO2 management. The Company benefits from its robust project delivery model supported by an extensive technology, products and services offering.
Operating in 34 countries, our 15,000 people are fully committed to bringing our clients’ innovative projects to life, breaking boundaries to accelerate the energy transition for a better tomorrow.
Technip Energies shares are listed on Euronext Paris. In addition, Technip Energies has a Level 1 sponsored American Depositary Receipts (“ADR”) program, with its ADRs trading over-the-counter. For further information: www.ten.com.
About LanzaTech
LanzaTech Global, Inc. (NASDAQ: LNZA) is the carbon recycling company transforming waste carbon into sustainable raw materials for everyday products. Using its commercial biorecycling technology, LanzaTech captures carbon generated by energy-intensive industries at the source, preventing it from being emitted into the air. LanzaTech then gives that captured carbon a new life as a clean replacement for virgin fossil carbon in everything from household cleaners and clothing fibers to packaging and fuels. By partnering with companies across the global supply chain like ArcelorMittal, Zara, H&M Move, Coty, and On, LanzaTech is paving the way for a circular carbon economy. For more information about LanzaTech, visit https://lanzatech.com.
Contacts
| Technip Energies | LanzaTech |
| Investor relations | Investor Relations |
| Phil Lindsay Vice President Investor Relations Tel: +44 203 429 3929 Email: Phillip Lindsay | Omar El-Sharkawy VP, Corporate Development lanzatechIR@icrinc.com |
| Media relations | Media relations |
| Jason Hyonne Public Relations Manager Tel: +33 1 47 78 22 89 Email: Jason Hyonne | Kit McDonnell Director of Communications Email: press@lanzatech.com |
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FAQ
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