UPDATE 1-Technip and Lanzatech in hunt for $200 mln US ethylene project funding

(Adds context in paragraph 2, quotes in paragraphs 3 and 5)

March 25 (Reuters) - Technip Energies and LanzaTech have been picked by the U.S government as potential recipients of up to $200 million in funding for a project to produce sustainable ethylene from captured carbon dioxide, they said on Monday.

The project to produce ethylene, which has a wide variety of uses from plastics to the controlled ripening of fruit and vegetables, is among many global initiatives seeking to make commercial use of carbon capture technology.

"This new joint technology will be developed in the U.S. for integration directly into existing commercial ethylene crackers, whereby it will capture CO2 emissions from the process and convert them into sustainable ethylene," the two companies said in a joint statement.

The project, called SECURE, is expected to create 200 construction jobs and 40 permanent jobs, they said.

"If awarded, up to $200 million is expected to fund the design, engineering, construction and equipment for a commercial-scale integrated technology unit in the U.S.," the companies added.

(Reporting by Olivier Sorgho Editing by David Goodman)