A groundbreaking innovation is turning industrial emissions into valuable resources. ArcelorMittal and LanzaTech Global Inc. are investing in a new facility in Ghent, Belgium, that uses carbon capture and utilisation (CCU) technology to convert waste gases from steelmaking into ethanol, a key ingredient in sustainable fuels, packaging, and even cosmetics.
The �200 million Steelanol plant is the first of its kind in Europe’s steel industry. It captures carbon-rich waste gases and biologically converts them into ethanol using an advanced fermentation process. Unlike traditional sugar-based fermentation, this method ferments gases using a specialised biocatalyst, reducing reliance on fossil-based production.
How It Works
The technology redirects gaseous emissions from steel mills that would otherwise be burned for power generation, releasing CO2 into the atmosphere. As the renewable portion of power generation continues to expand, burning gas for power makes less economic sense. Instead these gases are fed into bioreactors containing a specially designed biocatalyst � a specific strain of microorganisms, which breaks down the carbon and transforms it into ethanol. This ethanol can then be used to produce a wide range of products, from sustainable aviation fuels to bioplastics and fragrances, helping reduce dependence on fossil fuels across industries.
In May�2023, the facility reached a major milestone by successfully producing its first ethanol samples, demonstrating that industrial emissions can be converted into valuable materials at scale. The plant has an annual capacity of 80 million litres of ethanol, about half of Belgium’s current demand, while also cutting 125,000 tons of CO� emissions per year.
A Step Towards Circular Carbon
One of the most significant advantages of this approach is that it eliminates competition between biofuels and food crops. Unlike traditional ethanol production, which relies on agricultural products like corn or sugarcane, this method repurposes industrial waste gases, making it a truly circular solution.
By capturing and reusing carbon emissions, technologies like this could play a key role in achieving global climate goals while creating new markets for sustainable products.
Associated SDG targets
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