Lanzatech has secured new investment totalling US$55.8 million, led by the Malaysian Life Sciences Capital Fund and including Petronas Technology Ventures, the national oil company of Malaysia and Dialog Group, a technical services provider to Malaysia's oil, gas and petrochemical industry.

The Series C round also involved existing investor Khosla Ventures, Qiming Venture Partners and K1W1.

The latest funding will speed up development of biorefineries that use Lanzatech technology to produce low carbon chemicals and fuels, says CEO Jennifer Holmgren.

Haida Shenny Hazri, CEO of Petronas Technology Ventures Sdn Bhd, says its investment provides a platform for the integration of Lanzatech’s waste gas conversion technology with Petronas’ operations.

Lanzatech has raised more than $85 million so far. It expects to begin production of ethanol later this year at a demonstration plant at Baosteel in China that converts waste flue gas from steel manufacturing. It is also working with China's fourth largest steel company Capital Steel on a similar project.

In the US it is developing a facility to produce renewable fuels and chemicals. In India it is working with Indian Oil and Jindal Power and Steel on a facility to convert industrial waste gases into ethanol.