Carbon recycler LanzaTech NZ Inc. has struck a deal with Brookfield Renewable Corp. for a $500 million commitment by the investment firm to finance upcoming projects using LanzaTech’s technology, the companies told Reuters.

The cash from Brookfield, provided through its Global Transition Fund, will be used to construct and operate new projects using LanzaTech’s technology in Europe and North America.

Brookfield’s capital commitment, which will be used to back projects meeting conditions agreed upon by the two companies, could ultimately rise to $1 billion.

Founded in 2005, LanzaTech has developed technology which takes the carbon out of emissions and converts it into sustainable fuels, fabrics and other everyday products.

This has the dual effect of stopping greenhouse gases from escaping into the atmosphere, and providing materials that would otherwise need to come from traditional fossil fuel-based methods.

“LanzaTech’s technology provides a new way to decarbonize hard-to-abate sectors across the economy,” said Natalie Adomait, chief investment officer of Brookfield's Global Transition Fund.

Jennifer Holmgren, CEO of LanzaTech, told Reuters the partnership with a blue-chip investor such as Brookfield provides affirmation regarding the potential of the nascent industry of carbon recycling.

“Now we have the opportunity to go a lot faster,” she said.

Chicago-based LanzaTech has projects using its technology in China, and plans to deploy it this year at an ArcelorMittal plant in Belgium and an Indian Oil Corp. facility.

As part of its agreement, Brookfield Renewable is also investing $50 million in an instrument which converts into LanzaTech equity.

Earlier this year, LanzaTech struck a go-public deal with special purpose acquisition company AMCI Acquisition Corp. II that valued the carbon recycler at $2.2 billion.

LanzaTech’s previous backers include BASF, Mitsui & Co. and the venture arm of Malaysian state energy company Petronas.

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