LanzaTech NZ Inc said on Tuesday it plans to go public by merging with special purpose acquisition company AMCI Acquisition Corp II, in a deal that values the carbon recycling technology company at $2.2bn.

The deal is expected to raise gross proceeds of nearly $275 million, comprising the $150m AMCI raised in its IPO last year and a private investment in public equity of nearly $125 million from investors including ArcelorMittal and BASF.

A SPAC, or a blank-check company, typically sells shares at $10 apiece, puts the cash in a trust account, and then searches for a firm with which it can merge, taking it public in the process.

It spun out sustainable aviation fuel company LanzaJet in 2020, whose investors include All Nippon Airways, British Airways and the Microsoft Climate Innovation Fund.

Read more: Reuters