A New Zealand technology company has secured $3.5 million in private venture capital to develop ethanol from carbon monoxide.

LanzaTech is getting the funding from Khosla Ventures and two existing New Zealand-based investors.

According to a news release, this funding will support further technology development, establishing a pilot plant, engineering work to prepare for commercial-scale ethanol production and positions the company to raise significant capital in the near future.

This technology could produce 50 billion gallons of ethanol from the world’s steel mills alone, turning the liability of carbon emissions into valuable fuels worth over $50 billion per year at very low costs and adding substantial value to the steel industry.