Project “Steelanol”

First commercial project for advanced bio-fuel

production from waste gas

February 2015

1

2

Koudwalserij & afwerking Warmwalserij

Staalfabriek

Sinterfabriek

Cokesfabriek

Grondstoffenpark

Hoogovens

Elektriciteits- centrale

3

Production of Steel Gas in the

Integrated steel mill

Use carbon in coke as

reducing agent to convert

iron ore into pig (crude)

iron.

Drive excess carbon

out of the pig iron as

CO using oxygen

Carbon Pig Iron

Blast Furnace

BOF Converter

Steel

Power and Heat Plant

Power to Grid

CO Waste Gas

Displaces grid electricity

Steam & Power

BF BOFCoke

1050kg CO2eq/t Hot Metal

750kg CO2eq/t Hot Metal

40% of the carbon is leaving the

process as CO which is today

burned into CO2 for heat and

power

The LanzaTech Process

Gas Feed Stream

Gas Reception Compression Fermentation Recovery Product Tank

• 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)

Novel gas fermentation

technology captures CO-rich

gases and converts the carbon

to fuels and chemicals

No impact on water, food, land or biodiversity

Proprietary

Microbe

Business Confidential

Reducing Carbon: use all strategies to reach the climate goals

Re-using Atmospheric Carbon

Recycling Waste Carbon

Carbon Reduction through Re-use and Recycling

(Todays approach) (Gas fermentation)

Reducing Carbon footprint

Fuels

Chemicals

Industry Waste

Municipal Waste

Biogas Agricultural

Waste

Starch- based

Sugar- based

Oil based

Cellulose- based

CH4 Associated Gas,

Biogas

Biomass residues

Solid Waste Industrial, MSW,

DSW

Waste Carbon as a Resource

Inorganic CO2

CO CO + H2 CO + H2 + CO2 CO2 + H2 CO2 + H2O + e-

Fuels Chemicals

Gas Fermentation

Reforming Gasification Renewable

Electricity H2

Industrial Waste Gas

Steel, PVC, Ferroalloys

Food

6 Business Confidential

The environmental process advantages

Ethanol production

with > 65% GHG

emission reduction

compared to

conventional

gasoline

Additional

technology

advantages include

a local SOx/NOx

reduction , total

removal of BTEX

and decreased dust

emissions from the

steelmaking source

With a potential of over 90mt BOF steel production per year and a market

penetration of 50% in Europe, this would give ca 1mt advanced bioethanol

production

with the associated reduction of over 1.3mt CO2 emissions (~60% efficiency)

8

• Improved overall energy efficiency for the steel gas

– 36-40% in case of power generation goes to 70%

• Full integration of all by-products of the ethanol plant in the steelmaking operations

– Re-use of water in the biological water treatment plant of the cokemaking

– Bio-mass replaces PCI coal in the BF

– Un-reacted steel gas is used in the power plant

• Increased use of low temperature heat in steel plant

– Used for distillation of ethanol

• Reduced direct CO2 emissions in the steelmaking operation

– minus 150.000 ton/yr CO2 emissions for Flanders

• Overall reduction of CO2 footprint including power generation

• Bio-ethanol is fulfilling the most stringent sustainability criteria for advanced bio-fuels as proposed in the new RED

– No impact on land use

– > 60% reduction of GHG versus fossil fuel

Positive Impact on Sustainability

of Steelmaking

9

Technology has been proven in relevant industrial

environment.

Next step is scaling up to commercial level.

New Zealand Blue

Scope BOF plant

* 50-100kg / day

1) Bao Corex Plant

2) Capital Steel

3) Taiwan

16m3 / 300t/yr

Development in New Zealand Lab of LanzaTech

* 0,5-1,0kg / day

Gas Handling

Bioreactor Distillation

WWT Ethanol Storage

LanzaTech-BaoSteel Industrial Pilot Plant has proven the technology in an industrial environment (TRL 5)

Business Confidential

Scale up of the breakthrough technology in AM Gent

Business Confidential

Location: Gent, Belgium Objective: Develop total gas to fuel supply chain, optimize in a dynamic way the gas strategy (BF/BOF/Cokegas) in the plant based on power, gas and ethanol prices and overcome last technology risks Initial Demo Capacity: ~33M L/yr, steel gas to ethanol/chemicals Commercial Capacity: ~70M L/yr, steel gas to ethanol/chemicals Team: ArcelorMittal: Steel production LanzaTech: Gas fermentation

Siemens VAI: EPC partner DOW: Chemicals production E4Tech: Life Cycle Assessment

Timeline: Q1’15 decision EU Commission on H2020 application Q2‘15 start detailed design Q4’16-Q1’17 commissioning

Create synergy between various industrial sectors, bringing

sustainable solutions for waste treatment and resource supply

12

AM Gent is located near the Rodenhuyze docks

in the Harbor of Gent

• Rodenhuyze docks : large integrated bio-energy production site operational

– Bioro : production of 250.000 t/yr biodiesel

– AlcoBiofuel : production of 150.000 m³/yr bioethanol

– Electrabel : production between 80-180 MW power from biomass

– BioBaseEurope : Dutch/Belgian multipurpose pilot plant for bio based processes and products • Training of operators

• Scale up of processes

• ArcelorMittal and Lanzatech have started in 2012 a collaboration to develop the production of ethanol from steel waste gas by means of a biological process. The research has focused on the impact of the steel gas composition on the ethanol productivity and the upscaling of the technology for a large 5mt Integrated plant

13 Roll-out of the Technology in

Europe

14

• GHG reduction of Steelanol according LCA >78% based on waste gas

• When we include the effect of reduced power generation + the displacement of coal due to biomass in the BF, the effect depends on the CO2 intensity for the grid.

• For Europe the average is at 70% reduction.

GHG reduction of Steelanol vs Gasoline

• Water Use

– Process water can be recycled

– Water is not required for irrigation

• Land Use

– Small footprint on existing industrial sites

– No impact on existing ecosystems

– Completely outside the food value chain

– No Direct or Indirect Land Use Change

• Certification by Roundtable on Sustainable Biomaterials

– Audit of 400,000L demo plant in China 2013

– World first certification of Industrial Gas-Fuel process in 2013

15

Additional Sustainability Credentials

Business Confidential

LanzaTech Ethanol Life Cycle Assessment – EU Basis

83,8

19,6

0

10

20

30

40

50

60

70

80

90

Fossil Fuel LanzaTech Ethanol

gCO

2e/

MJ

Lifecycle GHG emissions following RED methodology

Fossil fuel comparator emissions (83.8 gCO2eq/MJ) from EU’s FQD

LanzaTech ethanol achieves a 76.6%

reduction in greenhouse gas emissions

over baseline fossil fuel

Business Confidential

Key Assumptions:

• Cradle-to-pump lifecycle of ethanol

• EU’s Renewable Energy Directive methodology

• BOF gas considered as waste gas by steel industry and as residue by RSB.

• GHG emissions for LanzaTech ethanol from steel mill waste gas (BOF)

17

European regulations create a mandate for qualifying fuels

• The Renewable Energy Directive & Fuel Quality Directive are the key drivers

for renewable and low carbon road transportation fuels

• In October 2012, public concern around food prices and (in)direct land use

change caused the European Commission to propose a change in the

Directives – referred to as the ILUC proposal

• The ILUC proposal created a window of opportunity for LanzaTech to

request inclusion of gas fermentation technology as a biological pathway to

fuels that uses bacteria

Business Confidential

LanzaTech meets the intent of Europe’s biofuels legislation:

substantial carbon reductions, no land use,

large volume potential, available now, cost effective

18

Key messages

• The technology meets the intent of the Renewable Energy Directive and

especially the ILUC proposal

• Technology is ready for commercial implementation

• Near-term opportunity to deploy in Europe, cost effectively

• Potential for significant impact in Europe, with a substantial carbon

reduction

• Technology is consistent with the principals of the waste hierarchy by

recycling carbon – treating carbon as a resource and not a liability

• It will enable Europe to meet its goals using domestic resources

• It utilizes carbon for liquid fuels and chemicals which require carbon

Business Confidential

LanzaTech meets the intent of Europe’s biofuels legislation:

substantial carbon reductions, no land use,

large volume potential, available now, cost effective