2014 LanzaTech. All rights reserved.

Science Symposium Smart Energy | BASF Creator Space™

Ludwigshafen | March 10th 2015

Dr. Michael Köpke

Director, Synthetic Biology

Carbon Recycling: Gas fermentation for fuel and chemical production

Company Profile

• Corporate Headquarters and R&D in Chicago, IL; R&D in New Zealand; Offices and Operations in UK, China and India

• Funding

– Series A: Khosla Ventures - $US 12M in 2007

– Series B: Qiming Ventures - $US 18M in 2010

– Series C: MLSCF - $US 60M in 2012 equity, $US 15M debt WTI

– Series D: Mitsui - $US 112M in 2014

• Team

CEO: Dr. Jennifer Holmgren

CSO/Founder: Dr. Sean Simpson

– Over 145 staff

Synthetic Biology

Fermentation, Analytical

Engineering

• IP Portfolio

– >250 Patents pending; 100 granted

– 2 proprietary microbe families

– 15 synthetic biology families

Business Confidential 2

Carbon is a problem when combustedClimate change

Acid rain

Increased respiratory illness

GHG

Emissions

(CO2, CH4)

Particulate

Emissions

NOx, SOx, and Hg Emissions

Ozone pollution

94M barrels/day

But still 1.6B people lack access to energy

23% childhood mortality India 94M people without food

Energy consumption will more than double

between 2010-2040

34% increase in the warming effect on our

climate 1990 - 2013

NOx levels 243% higher than pre-industrial era

Reductions in crop yield

Sources:IEA Oil Market report 2015 https://www.iea.org/oilmarketreport/

APF http://aliciapatterson.org/stories/china%E2%80%99s-rise-creates-clouds-us-pollution

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Challenges Ahead

1.8Bn2009

3.2Bn2020

4.9Bn2030

Increasing population

Increasing wealth

Increasing demand

7.2B 2015

8.3B 2030

Sources:IEA World Energy Outlook 2011: http://www.iea.org/publications/freepublications/publication/weo2011_web.pdf

EIA International Energy Outlook 2013: http://www.eia.gov/forecasts/ieo/pdf/0484%282013%29.pdf

36% by 20302011

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How we treat carbon will be key to our climate goals

The solution? Maybe not…

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The LanzaTech process is driving innovation

Gas Feed Stream

Gas Reception Compression Fermentation Recovery ProductTank

• 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 chemicalsProprietary

Microbe

Gases are the soleenergy and carbon source

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BiogasLFG, Methane

BiomassSolid WasteIndustrial, MSW, DSW

Waste carbon streams as a Resource

CO2

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

Gas Fermentation

Reforming Gasification Renewable

ElectricityRenewable H2

Industrial Waste Gas

Steel, PVC, Ferroalloys

Available Most Point SourcedHigh Volume/Low Intrinsic Value

Non-Food

*2010 global production; 2012 proven gas reserves data (IEA, UNEP, IndexMundi, US DOE Billion Ton Update)

~ 1.4B MTA (Steel only) * ~184.2T M3 * >1.3B MTA (US Alone) *>2B MTA *

Carbon efficiency means cleaner air: Emissions savings

Gas Feed Stream

Gas reception CompressionFermentation Recovery Producttank

The LanzaTech Process

CO

CO2

5.2 barrels of gasoline are displaced by every

tonne of ethanol produced

1 tonne ethanol produced as CO averted from flare

Per tonne of LanzaTech Ethanol

CO2 MT kg PM kg NOx kg SOx

Averted from flare 2.1 0.6 4.1 0.9

Displaced gasoline +0.5 +2.5 +7.4 +4.0

Energy required for LanzaTech Process

-0.8 -0.2 -0.8 -1.6

Avoided per tonne of ethanol

1.8 2.9 10.7 3.3

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LanzaTech Ethanol Life Cycle Assessment - Fuel ComparisonThird Party Study – 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

Key Assumptions:

• Cradle-to-pump lifecycle of ethanol

• EU’s Renewal 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)

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Gas from both hydrothermal vents and steel manufacturing include:

Carbon monoxide (CO)

Hydrogen (H2)

Carbon dioxide (CO2)

Hydrogen sulphide (H2S)

Methane (CH4)

Not so different…

4 billion years ago Modern day

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Ancient biology for a modern need

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Reductive acetyl-CoA pathway

Köpke et al., Curr Opin Biotechnol 23: 320-325 (2011)

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Unique chemistry

Biological Water-Gas-Shift (WGS) reaction – Making Hydrogen on Demand

Carbon Monoxide dehydrogenase (CODH) enzyme

Operates at ambient temperature and pressure

Allows the organism to use any CO:H2 concentration

Novel electron-Bifurcating enzymes – Coupling an Exergonic with an Endergonic Reaction

Two novel Electron-Bifurcating enzymes identified:

Nfn Complex and Hyt hydrogenase

Efficient and reversible reduction of CO2 with H2 to formate

Allows the organism to save energy and

enabling synthesis of products

Wang et al., J Bacteriol: 195: 4373-86 (2013)

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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 an evolved proprietary

strain of Clostridium autoethanogenum

Obtained by extensive natural selection program,

having improved characteristics over parent strain

– High gas uptake and ethanol production rates

– Fast growth on defined minimal media

– Non-sporulating and non-motile

– High tolerance to contaminants and products

Sequencing revealed several variations to parent strain: RearangementDeletion Variation Insertion

Brown et al., Biotechnol Biofuels 7: 40 (2014)

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Developed genetic engineering platform from scratch…

• No Genetic Tools were available for gas fermenting bacteria

• Robust and high-throughput strain engineering platform developed

• Proprietary genetic toolbox including genome editing tools

and comprehensive parts library

• Online analytics and Omics pipeline

• First predictive genome-scale model of a gas-fermenting organism

– Consists of >1000 metabolic

reactions and metabolites

– Accurately predict growth

and product formation

– Validated against lab and

real world data

– Predicts optimal strain

engineering strategies

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1 Organism, over 20 Products…

Pyruvate

CO/H2

Acetyl-CoA

Fatty Acids,

Terpenoids

Aromatics

Ethanol

Succinate

Lactate

2,3-Butanediol (2,3-BDO)

Biodiesel (FAEE)

3-Hydroxypropionate (3-HP)

IsopropanolAcetone

1-Butanol

1,3-Butanediol (1,3-BDO)

Partnerships

Butylene

1,3-Butadiene

Biopolymers

Amino Acids

Butyrate

3-Hydroxy

Butyrate (3-HB)

Methyl Ethyl Ketone (MEK)

2-Butanol

Acetoin

1,2-Propanediol

1-Propanol

Jet Fuel

Isoprene

Aromatics

DiscoveryLab Scale

Process

Scaled-Up

Process1 Organism, over 25 Products…

Acetate

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CO2

H2

Acetate

CarbonSource

EnergySource

2nd fermentation

Patent filed, optimization underway

Downstream conversion – Direct Carbon Dioxide to Lipids Platform

Hydrocarbon Transport Fuels>US $ 3 trillion/year

OleochemicalsUS $15 billion/yr

Food, Nutritional SupplementsUS $25 billion/yr

Animal FeedsUS $370 billion/yr

EnergySource

CarbonSource

• Yeast accumulate lipids to >70% of their cell mass

• Algae accumulate lipids to >50% of their cell mass

• 40% of algal lipids content are Omega-3 fatty acids (Specifically DHA)

Lipids Product Markets

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Downstream Conversion – 2,3-BDO to Butadiene

Styrene Butadiene Rubber (SBR)US $13 billion/yr

Polybutadiene Rubber (BR)US $8 billion/yr

Nylon 6,6 (from Adiponitrile/HDMA)US $7 billion/yr

Acrylonitrile Butadiene Styrene (ABS)US $16 billion/yr

Köpke and Havill, Catalyst Review 27: 7-12 (2014)Köpke et al., Appl Environ Microbiol 80: 3394-403 (2014)Köpke et al., Appl Environ Microbiol 77: 5467-75 (2011)

Butadiene Product Markets

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Downstream Conversion - Hydrocarbon Fuels Process

Key Enabler:

Price and

Availability

of Alcohol

First

demonstration

flight planned

later this year

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Ready Now: Scale-up of the LanzaTech technology

Commercial Scale-up Factor Less Than

What Has Been Proven at Demo Scale

Lab

2005

~0.5-1 kg/day

Pilot

2008

50-100 kg/day

50 X Demo

2012

~1500 kg/day

32 X Commercial

2015

~300,000 kg/day

25 XStrain

Development

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Successful technology demonstration

• Successful demonstrations at six

industrial sites to date: New

Zealand, Asia, United States

• Two 100,000 gallon/year ethanol pre-

commercial facilities

• Technology proven using industrial

gas, chemicals, utilities, and water

• Over 40,000 total hours on stream

• Pure continuous runs of > 2000

hours

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Optimizing efficiency: Reactor design & operation

• CO utilization has improved with advances in reactor design

• LanzaTech Pilot plant operations have shown > 95% CO utilization

CO Utilization in the Pilot Plant has been Improved

since the Design of the Demo Reactors

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Global Technology “Lab”: Data, Data, Data

Kaoshiung, TaiwanS/U: Q1 2014

Input: Steelmill gasProduct: Ethanol

Caofeidian, ChinaS/U: Q1 2013

Input: SteelmakingProduct: Ethanol

Shanghai, ChinaS/U: Q1 2012

Input: Steelmill gasProduct: Ethanol

Daejeon, South KoreaS/U: Q2 2015Input: SyngasProduct: BDO,

Butadiene

Glenbrook PilotAuckland, NZ

S/U: 2008Input: Steelmill gasProduct: Ethanol

Freedom PinesSoperton, GA

S/U: 2013Input: Reformed gas,

Biomass syngasProduct: Ethanol,

Jet

Multiple plants at various scales all demonstrating different key aspects of process

AsiaS/U: Q4 2014

Input: MSW SyngasProduct: Ethanol

MSW

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Progress to Commercial @ Bao

• NDRC approval for commercial deployment

obtained

• Project site identified

• Feasibility study completed

• Financing approved by Bao Metal Board

• Preliminary Basic Design completed and

under review

• EPC contract being finalized

• Working with partners globally on additional

commercial plants (Beyond Bao)

Creating value through diversification

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LanzaTech global partnerships

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Global Recognition

LanzaTech named Global Cleantech 100 Continued

Excellence winner.

LanzaTech and Virgin Atlantic named 2013 Observer Ethical Award Winners

LanzaTech listed in Sustainia 100

A guide to innovative solutions

at the forefront of sustainable transformation.

Virgin Atlantic wins Sustainable Aviation Award for partnership with LanzaTech

LanzaTech won The Guardian Sustainable Business Innovation Award for Carbon and Energy Management.

LanzaTech won The Breakthrough Innovation Award at the Platts Global Metals Award.

LanzaTech Named a World Economic Forum Technology Pioneer 2013

One of 23 companies globally with promise of “significantly impacting the way business and society operate.”

2014

2013

LanzaTech wins

Global Cleantech

100 North

American

Company of the

Year Award

LanzaTech won Sustainable Innovation Award at Platts Global Energy Awards

LanzaTech won Technical Development Award from World Petroleum Council

#1 Hottest

Company in

Biofuels and

#5 in

Biochemicals

2015LanzaTech won Feedstock of the Year Award and CEO Jennifer Holmgren won Business Person of the Year

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A sensible path…

Industrial Growth

Energy Security

Energy Efficiency

Aligns:

Land To Produce Food

For People

Allows:

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Biofuels “Done Right”

Provides economic development

that creates “green jobs”

A sustainable solution to our

climate and energy challenges

Provides energy security from

sustainable, regional resources

Provides affordable options to

meet growing demand in emerging

economies

No impact on water, food, land or biodiversity