"While there is still work to be done and logistical hurdles to cross, we have excellent partners in Virgin Atlantic, Swedish Biofuels and Boeing," said Lanzatech's US-based chief executive Jennifer Holmgren said. "We are confident that we will have a facility with the capacity to produce fuel for commercial use by the end of 2013."
While the process does not avoid greenhouse gas emissions from aviation, it recycles waste gases that would otherwise be burnt into the atmosphere.
"Sustainable aviation biofuel based upon conversion of alcohol to jet fuel is the next type of biofuel which will be under consideration for approval for use in commercial aviation. Boeing will be playing a key role in supporting the approval process," said Bill Glover, Boeing vice-president of environmental strategy and aviation policy in a statement from the four partners in the venture.
Virgin Atlantic president Sir Richard Branson said the move continued the airline's leadership in bio-fuels for commercial aviation.
"This partnership is a major step towards reducing our carbon footprint," said Sir Richard, who was in New Zealand recently during the early stages of the Rugby World Cup.
"It is important that these new fuel solutions are sustainable, and with over with 15 billion gallons of jet fuel potentially generated from the billion tonnes of steel produced annually, this exciting new technology is scalable, sustainable and can be commercially produced at a cost comparable to conventional jet fuel."
Before commercial roll-out can occur, the partners will require technical approvals, with the first demonstration flight planned within the next 12 to 18 months.
The Roundtable for Sustainable Biofuels (RSB), a leading international body on sustainable biofuels production, will advise the team to ensure the fuel produced meets key environmental, social and economic criteria.