Kiwi-based biofuel entrepreneur Lanzatech has sneared another round of US government funding as it assesses production opportunities offshore.

Lanzatech's technology converts polluting industrial gases into high-value chemicals such as ethanol, which are used in the production of biofuel.

The Auckland company said the $3.8 million contract from US government aviation agency FAA (Federal Aviation Administration) would accelerate the commercial availability of the next generation of alternative aviation fuel.

Lanzatech's chief executive Jennifer Holmgren said the funding would help the company assess US production opportunities and provide critical fuel data.


A key goal of the project was to produce 100 plus galloons of alternative jet fuel for testing by the US Air Force Research Laboratory, Dr Holgrem said.

"We will introduce new fuel feedstock resources that can be used to enable both military and civilian aviation sectors to meet their carbon and cost goals," Dr Holmgren said.

The project would use heavy industry gases and synthesis gas derived from lignin, a byproduct of cellulosic ethanol.