LanzaTech increases stake in LanzaJet to 36%

LanzaTech, the developer of the alcohol-to-jet (ATJ) technology, increased its ownership stake in its sustainable aviation fuel (SAF) production subsidiary LanzaJet from 23% to 36%, the company’s filings showed.

“Today’s announcement represents the execution of the first step of a plan we put in place for the commercialisation of the ATJ process when we spun LanzaJet out into its own business four years ago,” said Dr. Jennifer Holmgren, CEO, LanzaTech and Board Chairperson of LanzaJet.

“It’s very exciting to realise immediate, meaningful value creation for LanzaTech stockholders with this transaction. LanzaTech’s increased ownership in LanzaJet comes at a pivotal time, when the global aviation industry’s significant and growing demand pull for SAF is undeniable, and the opportunity set for what our two companies can deliver seems almost limitless. LanzaTech and LanzaJet are better positioned than ever to successfully deliver on a robust pipeline of projects, which is expected to pave an increasingly visible path to profitability and free cash flow generation for both companies.”

This increase is part of a previous agreement where LanzaJet gets to sublicense LanzaTech’s technology to convert ethanol into SAF in exchange for more shares in LanzaJet.

The first tranche of shares came after LanzaJet signed a deal with Jet Zero Australia to build Australia’s first ethanol-to-SAF plant. LanzaTech expects its ownership to grow to 46% and then 53% over the next 18 months as LanzaJet expands globally.

The companies said that the pipeline of opportunities that exists for these types of collaborative biofuel solutions is expected to be a key pathway for LanzaJet to license its technology with the potential to expedite the second and third tranches of shares expected to be issued to LanzaTech.

Both companies are working together on projects wherein LanzaJet will take ethanol from LanzaTech’s proprietary waste-to-ethanol biorefining platform and convert it to drop-in SAF using its ATJ technology.

The resulting fuel can reduce airplane emissions by at least 85%.

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