A new finance agreement between LanzaTech, a company dedicated to turning waste carbon into materials, and Brookfield Renewable has been revealed.

The initial $500 million investment will be used to jointly develop and build new, large-scale commercial production facilities that will make use of LanzaTech's Carbon Capture and Transformation (CCT) technology.

The Brookfield Global Transition Fund (BGTF), which focuses on energy transitions, will provide the funding.

Brookfield will now serve as LanzaTech's top choice for a capital partner for its CCT operations in Europe and North America.

Additionally, the company stated in a press release that if the projects reach predetermined milestones, the renewable energy company may invest an extra $500 million in the strategic alliance.

It will also provide an additional $50 million to LanzaTech's business expansion.

Steel mills affiliated with LanzaTech have been able to transform emissions into things like garments, fragrances, and household cleaning goods by using the company's carbon transformation technology.

The business most recently collaborated with On on a pair of shoes using carbon emissions as the primary raw material.

Natalie Adomait, managing partner and chief investment officer of BGTF, said that LanzaTech's technology gives a new way to decarbonize economically challenging areas. They see this as a great chance to hasten the deployment of this technology at scale and to work with others to expand in a newly developing sector of infrastructure in a decarbonized economy.