A steel mill waste gas-to-ethanol facility in China has secured a world-first certification for recycled carbon fuel, potentially opening new commercial opportunities in Europe’s regulated transport fuel markets.
Hebei Shoulang New Energy Technology Co., Ltd., located in Tangshan, Hebei Province, has become the first facility to achieve International Sustainability and Carbon Certification (ISCC) EU certification as a Recycled Carbon Fuel (RCF) producer for ethanol made from steel production waste gases, according to LanzaTech Global, Inc.
The certification marks a significant step in turning industrial waste carbon into marketable fuel, allowing certified volumes of the facility’s ethanol to be sold as recycled carbon fuel for marine and road transport in the European Union and, subject to additional regulatory requirements, aviation fuel markets in the EU and UK.
The facility, a wholly owned subsidiary of Beijing Shougang LanzaTech Technology Co., Ltd. (SGLT), uses patented gas fermentation technology licensed from LanzaTech to convert waste gases generated during steel production into ethanol.
The certification was issued under the ISCC EU scheme following an audit by SCS Global Services and its China-based affiliate, Beijing Green Forest Certification.
Recognised by the European Commission and approved by the UK’s Department for Transport for demonstrating compliance with the Renewable Transport Fuel Obligation (RTFO) and the UK SAF Mandate, ISCC EU certification verifies sustainability performance, greenhouse gas emissions calculations and supply-chain traceability.
The certification aligns with the European Union’s Renewable Energy Directive, including its revised framework, RED III, which requires member states to increase the share of renewable energy in transport and allows recycled carbon fuels to contribute towards national targets where permitted by domestic rules.
For Hebei Shoulang, certification provides the documentation needed for eligible ethanol volumes to qualify under applicable fuel regulations. It also creates a potential commercial pathway for LanzaTech’s CarbonSmart ethanol in markets where verified carbon intensity can influence fuel value.
“This is a significant milestone for SGLT and for the Hebei Shoulang facility,” said Qingkun Song, Deputy General Manager of SGLT. “Achieving ISCC EU certification for recycled carbon fuel shows that carbon recycling is not only technically proven, but commercially relevant in regulated fuel markets. We are proud to help establish this new category and to support growing demand for certified lower-carbon fuels across Europe and beyond.”
For LanzaTech, the certification is more than a sustainability milestone. It could help convert growing interest in recycled carbon fuels into commercial opportunities in markets with binding decarbonisation requirements.
“This is not just another certificate; it creates a near-term pathway to monetize recycled carbon in EU marine and road markets, while positioning us for aviation opportunities in the EU and UK. In mandated markets where verified carbon intensity carries real value, certification is what turns customer interest into revenue opportunity and accelerates our path to profitability,” said Jennifer Holmgren, CEO and Board Chair of LanzaTech.
The company said Meo Carbon Solutions, a consultancy specialising in greenhouse gas accounting, regulatory advice and sustainability certification, supported LanzaTech and Hebei Shoulang through the process.
LanzaTech also worked with Brookfield to address renewable power requirements at the facility, a complex part of the certification pathway that the company expects could inform future recycled carbon fuel certifications.
The certification also highlights the role of independent verification in bringing emerging fuel technologies into regulated markets.
“For ISCC, it has been a pleasure to continue working with LanzaTech and to see its facility in China achieve ISCC EU certification for Recycled Carbon Fuels, supporting the broader development of the renewable fuels ecosystem.
"As a leading sustainability certification scheme, ISCC supports organizations globally to build credible, sustainable supply chains through rigorous certification, including for innovative feedstocks and production pathways. This allows emerging technologies and fuels to demonstrate compliance with sustainability requirements and access regulated markets," said Dario Formenti, ISCC Senior Manager & Technical Lead for Aviation & Maritime, ISCC System GmbH.
Don Scott, ISCC Program Director at SCS Global Services, said the audit confirmed that the facility met the scheme’s requirements for supply-chain traceability and greenhouse gas accounting.
"This certification proves that recycled carbon fuels can meet the same rigorous sustainability standards that govern the rest of the renewable fuel market. Our audit confirmed that Hebei Shoulang's chain of custody and greenhouse gas accounting meet the ISCC EU scheme's requirements. This achievement shows that facilities converting industrial waste gas into usable fuel can meet the standards that regulated European markets demand."
