Kiwi firm LanzaTech has inked an agreement with Virgin Atlantic to develop a ground breaking low carbon aviation fuel.
The new fuel is expected to have only half the carbon footprint of the standard fossil fuel alternative, the first of its kind in the world.
The revolutionary fuel production process recycles waste gases from industrial steel production.
The gases are captured, fermented and chemically converted using Swedish Biofuels technology for use as jet fuel.
LanzaTech was founded in New Zealand in 2005, and has developed a gas-liquid fermentation process that produces fuels and chemicals from gas resources.
Its technology enables energy partnerships between multiple industries, including the steel, coal, refining and chemicals sectors.
"This technology will enable airlines to dramatically reduce their carbon footprint by reusing gases that would otherwise have been emitted directly into the atmosphere," Chief Executive of LanzaTech Dr Jennifer Holmgren said in a statement.
"While there is still work to be done and logistical hurdles to cross, we have excellent partners in Virgin Atlantic, Swedish Biofuels and Boeing and we are confident that we will have a facility with the capacity to produce fuel for commercial use by 2014."
The technology is currently being piloted in New Zealand. LanzaTech estimates that its process can apply to 65 percent of the world's steel mills.
"This partnership to produce a next generation, low-carbon aviation fuel is a major step towards radically reducing our carbon footprint, and we are excited about the savings that this technology could help us achieve,"President of Virgin Atlantic, Sir Richard Branson said.
"With the steel industry alone able to deliver over 15 billion gallons of jet fuel annually, the potential is very exciting. This new technology is scalable, sustainable and can be commercially produced at a cost comparable to conventional jet fuel."
Virgin Atlantic is planning on using the new fuel on its routes from Shanghai and Delhi to London Heathrow within two to three years as LanzaTech and its partners develop facilities in China and India.
Earlier this month LanzaTech signed a joint venture agreement with one of China's largest steel-producers the Shougang Group to construct a demonstration plant at one of Shougang's steel mills, with the intention of scaling the demonstration plant to a fully commercial facility.
Chinese Vice-Premier Hui Liangyu and New Zealand Deputy Prime Minister Bill English were present at the signing of the agreement of the between Shoungang and LanzaTech in Wellington.
LanzaTech's first commercial operation in China is expected to be in place by 2014.
Following its successful implementation, a wider roll-out could include operations in the UK and the rest of the world.
