VC-backed LanzaTech raises $60m from NZ Super
The New Zealand Superannuation Fund has provided $60 million growth capital for low-carbon fuels producer LanzaTech.
Founded in New Zealand in 2005 and now headquartered in Chicago, LanzaTech has developed a technology for converting carbon dioxide into fuel and chemical products.
Nigel Gormly, head of international direct investment, said in a statement that the NZ Super was attracted to LanzaTech because of the exposure it provides to the waste-to-energy sector. "We are actively diversifying into alternative and non-conventional energy, alongside traditional energy investments," he said.
The investment is one of a series of recent growth capital investments by NZ Super. Previous investees include US companies Bloom Energy and Ogin, while the sovereign fund has participated in growth deals through GPs such as Pencarrow Private Equity, Pioneer Capital Partners and Waterman Capital. Growth transactions only account for around 1% of the NZ$27 billion ($21 billion) NZ Super Fund has in assets.
LanzaTech will use the new capital to expand and develop its global platform. The company won support from the China Academy of Sciences to commercialize its technology in China. Its first full-scale commercial facility, which is being financed by China steel manufacturer Baosteel, is expected to be completed by 2016.
In March, LanzaTech secured $60 million in Series D funding led by Japan's Mitsui & Co, with participation from China International Capital Corp. and Siemens Venture Capital. Return backers Khosla Ventures, Qiming Venture Partners, New Zealand's K1W1 and the Malaysia Life Sciences Capital Fund also participated.
Silicon Valley-based Khosla was an early investor in LanzaTech in 2007 and is the largest shareholder in the company. Softbank China Venture Capital and Malaysian Petronas Technology Ventures have alll taken part in previous rounds.
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