Shougang Group has signed a jv with New Zealand group LanzaTech to construct a demonstration plant at one of Shougang’s steel mills in China.

The partners say the intention is to quickly scale the JV demonstration plant to a fully commercial facility at a Shougang steel mill.

LanzaTech’s clean energy technology ferments a variety of gas resources, including those emitted through steelmaking, to produce low carbon fuels. Its technology is particularly attractive because it has no impact on food security or land use

Beijing-based Shougang is one of the largest steel producers in China. It is looking globally for technology that will help reduce the environmental impact of steel making.

Shougang President Wang Qinghai said the JV symbolizes Shougang’s desire to break the paradigm of heavy industry being a key contributor to carbon emissions.