Lanzatech announced the deal at the Paris Air Show, a key global aviation industry event, where chief executive Jennifer Holmgren says alternative fuels had been a focus this year.

"The Department of Defense has set ambitious targets for alternative fuel use with the Air Force goal of 50 per cent alternative fuel use in all its domestic flights, and the Navy's objective to use 50 per cent alternative fuel across all of its operations by 2020," Holmgren said in a statement on the latest in a string of international contracts testing application of Lanzatech's patented carbon monoxide-eating microbe.

The gas fermentation process has been developed to allow waste gases from such industrial plant as steel mills and oil refineries to be used to make bio-fuels and a range of commercially valuable chemicals. A key advantage of the technology is that it does not use food crops to make bio-fuels.

A "drop-in" aviation fuel has always been part of the Lanzatech suite of possibilities.

The DARPA contract will allow Lanzatech to "perform research focusing on novel, low cost routes for the production of jet fuel (JP-8) from carbon monoxide rich sources," the company said in a statement.

"DARPA support will enable us to continue to improve the economics of this unique technology platform, leading to an economically and environmentally sound approach to alternative aviation fuels," said Holmgren.

Part of the rationale is to stabilise aviation fuel costs as oil prices rise.

"In order to deliver cost competitive aviation fuels from alcohols, the price of the alcohol must be driven to a very low number," Holmgren said. "Ethanol to jet conversion requires that two gallons of alcohol be converted per gallon of jet fuel produced. Therefore the alcohol must be produced at a low enough cost that doesn't make the aviation fuel cost prohibitive."

"We believe that there are a number of handles which can further reduce the price of our alcohol such that the final aviation fuel will be cost competitive with petroleum derived fuels without incentives," she said.

The deal is the second this month for Lanzatech which added the giant Japanese industrial conglomerate Mitsui and Co. to its existing pilot arrangements with one of India's largest oil refinery businesses, two major Chinese steel makers, and a Korean steel maker. It is also working in collaboration with one of China's leading science institutions, the Chinese Academy of Sciences.

Lanzatech was advanced by the Chinese Government as a leading new technology during the summit meeting in January between Premier Hu Jin Tao and US President Barack Obama.

Your name

Listed as anonymous if blank

Subject *

Comment *

Comment composition options »

Allowable HTML: <!--break--> <a> <em> <i> <b> <strong> <pre> <u> <strike> <sub> <p> <table> <tr> <td> <thead> <tbody> <sup> <cite> <code> <ul> <ol> <li> <dl> <dt> <dd> <h2> <h3> <h4> <h5> <h6> <br> <hr>
Line and paragraph breaks are recognised automatically.

Captcha *

This is a test to prevent automated spam submission. To receive a new challenge click below or click to receive audio challenge.