2026-10-14
- Shougang LanzaTech signed a cooperation agreement with Sinopec Research Institute of Petroleum Processing and Sinopec Ningbo Engineering, as reported on October 12, 2026.
- The agreement covers a 50,000 tpy industrial off-gas-to-ethanol-to-SAF (Sustainable Aviation Fuel) project in Shizuishan, Ningxia, China.
- Shougang LanzaTech is said to contribute microbial fermentation technology, while Sinopec contributes research and engineering capabilities.
- Additional research reportedly includes combining CO2 electro-conversion with biological fermentation, and developing bio-based ethylene.
- Investment, schedule and start-up timing have not been disclosed.
Shougang LanzaTech is teaming up with research and engineering arms of Sinopec to convert industrial off-gas into ethanol and then upgrade that ethanol into SAF. According to a Hydrocarbon Processing report dated October 12, 2026, Shougang LanzaTech signed a cooperation agreement with Sinopec Research Institute of Petroleum Processing and Sinopec Ningbo Engineering. The project is sized at 50,000 tonnes per year (tpy) and is planned for Shizuishan in China’s Ningxia region.
The agreement illustrates how gas fermentation, which turns industrial emissions into fuel feedstock, is meeting aviation’s demand for decarbonization. Investment, schedule, start-up timing and executive comments have not been disclosed, so the news is best read as the launch of a cooperation framework rather than a binding final investment decision.
According to the report, the project follows a two-step structure: industrial off-gas is converted into ethanol, and the ethanol is then upgraded into SAF. The first step relies on Shougang LanzaTech’s microbial fermentation technology, which is known to use microbes that consume carbon-bearing industrial gases, such as carbon monoxide, and convert them into ethanol. Sinopec’s research and engineering capabilities are said to support the step that takes ethanol to SAF.
The roles are divided as follows. Shougang LanzaTech provides the fermentation technology, Sinopec Research Institute of Petroleum Processing contributes research capability, and Sinopec Ningbo Engineering contributes engineering capability. The value chain described in the agreement runs from industrial off-gas conversion to green ethanol, biofuels and bio-based materials.
Two additional research topics were mentioned. The first is combining CO2 electro-conversion with biological fermentation, which is understood as an effort to connect an electrochemically converted intermediate to the fermentation process and thereby widen the range of feedstocks. The second is bio-based ethylene development. Because ethanol can be converted into ethylene, it serves chemical materials as well as fuel.
The stated purposes of the cooperation are to expand feedstock sources, improve resource utilization, and accelerate Shougang LanzaTech’s entry into the SAF market.
Numbers
The 50,000 tpy project size is almost the only confirmed figure. The report does not break down whether that number refers to ethanol output or SAF output, and no detail on the split has been disclosed. Investment, construction period and start-up timing have likewise not been disclosed.
For context, there is the existing commercial plant of LanzaTech and its joint venture partner Shougang Group at the Jingtang Steel Mill in Caofeidian, Hebei Province. That plant was reported to have an ethanol capacity of 46,000 tpy, about 16 million gallons. On the numbers alone, the 50,000 tpy of the Ningxia project is of similar magnitude, but available public information does not confirm whether the two figures are on the same product basis.
Timeline
- 2018-05-03 — LanzaTech’s Caofeidian plant (46,000 tpy ethanol), a joint venture with Shougang Group, is said to have started operation.
- 2025-11-26 — LanzaJet’s Freedom Pines Fuels plant in Georgia, US, was reported to be fully operational.
- 2026-10-12 — Shougang LanzaTech was reported to have signed a cooperation agreement with Sinopec Research Institute of Petroleum Processing and Sinopec Ningbo Engineering for a 50,000 tpy off-gas-to-ethanol-to-SAF project in Shizuishan, Ningxia.
Note
Off-gas refers to the exhaust gas emitted as a by-product of steelmaking, chemical processes and similar operations, and may contain carbon monoxide and hydrogen. SAF is aviation fuel made from bio-based or waste feedstocks so that it can replace or be blended with conventional petroleum-based jet fuel.