LanzaJet, a pioneering sustainable fuels technology company, has announced the first close of a major equity investment round, securing $47 million in new capital. The funding, co-led by industry giants International Airlines Group (IAG) and Shell, values the company at a $650 million pre-money enterprise valuation. This strategic infusion of capital is earmarked to accelerate the commercial deployment of LanzaJet's proprietary ethanol-to-Sustainable Aviation Fuel (SAF) technology.
A Strong Vote of Confidence from Industry Leaders
The investment round saw robust participation from existing shareholders, including Groupe ADP, LanzaTech, and Mitsui, reaffirming their commitment to the company's mission. This continued financial backing from key aviation and energy sector players underscores a strong industry belief in LanzaJet's unique Alcohol-to-Jet (ATJ) process. The move is seen as a critical step in scaling production to meet the aviation industry's growing decarbonization demands.
Chief Executive Officer Jimmy Samartzis highlighted the pivotal nature of this funding, following the plant's recent success in producing on-spec fuel. He noted that the leadership from existing investors validates their conviction in the technology and its commercial viability. Samartzis affirmed that this signals LanzaJet's commitment to creating new value for ethanol and defining the future of transportation fuels.
Powering Commercial Operations and Global Expansion
The new capital will directly support the enhancement of operations at the LanzaJet Freedom Pines Fuels facility in Soperton, Georgia. This plant recently marked a global milestone as the first to produce commercial-scale jet fuel from an ethanol feedstock. The funding ensures the facility can continue to scale its output of SAF and renewable diesel for the market.
Beyond its U.S. operations, the financing will help LanzaJet capitalize on its extensive portfolio of global opportunities. A portion of the capital stems from a grant awarded by the UK Department for Transport's Advanced Fuels Fund. This grant is specifically aimed at accelerating the development of Project Speedbird, a planned large-scale SAF biorefinery in Teesside, UK.
Innovative Tolling Structure Secures Market Position
As part of its growth strategy, LanzaJet is implementing an innovative multi-year tolling structure at its Georgia facility. This agreement secures a consistent supply of low-carbon, waste-based ethanol produced domestically for its feedstock needs. The model also includes a guaranteed offtake of all SAF and renewable diesel produced, ensuring stable revenue streams.
Restructuring for Strategic Growth
In conjunction with the funding round, LanzaJet has optimized its ownership and corporate governance structure. This strategic realignment is designed to enable more effective and efficient decision-making as the company expands its operations. The move also positions the company to attract a broader range of future investors for subsequent funding rounds.
This successful capital raise marks a significant milestone for LanzaJet, solidifying its position as a frontrunner in the sustainable aviation fuel industry. With strong backing from major industry partners, a proven commercial-scale technology, and a secure operational model, the company is well-equipped for global expansion. LanzaJet's progress represents a crucial advancement in the aviation sector's journey toward decarbonization and a more sustainable future.