Chinese biotech startup Gasgene has raised over RMB 100 million (approx. USD 14 million) from Shanghai Science and Technology Intellectual Property Fund and Tianjin Venture Capital to move its gas-fermentation technology from pilot to commercial production. The company converts industrial waste gases into commodity chemicals, fuels, and single-cell proteins, offering overseas buyers a potential low-carbon, cost-competitive alternative to petrochemical-derived products.
Technology and core team
Founded in January 2023, Gasgene specializes in C1 compound conversion and gas fermentation, transforming industrial exhaust into chemicals, fuels, and single-cell proteins. Co-founders Wen Zhiqiang and Wang Qingzhuo both studied under the same professor at the CAS Key Laboratory of Synthetic Biology. Their research group has executed over 100 industrialization projects and accumulated nearly 20 years of experience in C1 conversion and gas fermentation.
Strategic rationale
China's 2026 Government Work Report set a first-ever annual target to cut CO₂ emissions per unit of GDP by about 3.8%, shifting emissions management from long-term goals to year-by-year policy indicators. This elevates the importance of technologies that turn industrial exhaust into resources. Meanwhile, rising geopolitical risks threaten stable imports of oil, defatted soybeans, and fishmeal, making alternative feedstocks a strategic priority.
Product pipeline and cost advantage
GASGENE selected butanol as its first product, alongside feed-protein substitutes. Butanol is a fiercely price-competitive commodity chemical where feedstock costs account for over 60% of total cost in conventional petrochemical routes. The company's Clostridioides fermentation uses industrial waste gas as feedstock, drastically cutting raw-material costs. Wang emphasized: "Our innovative technology reshapes the cost structure of commodity chemicals, giving us a competitive edge."
Pilot progress and flexibility
Since 2024, Gasgene has completed 100-ton and 500-ton pilot plants for producing ethanol, higher alcohols, and single-cell proteins from coal-chemical exhaust. The facilities are designed for flexible multi-product manufacturing.
What buyers should watch
GASGENE estimates that producing butanol via its bio-process reduces CO₂ by about 4 tons per ton of butanol compared to the petroleum-based route. The company plans to enter the CCUS market, supplying emission-reduction equipment to large coal-chemical plants and power utilities, and monetizing carbon credits and emissions trading. Overseas buyers seeking low-carbon commodity chemicals and feed proteins should monitor Gasgene's scale-up progress and potential export availability.
Source: Read the original report | Published: April 28, 2026