LanzaJet secures financing to scale SAF production, supply global customers

LanzaJet Inc. announced Oct. 15 fully committed new financing of at least $20 million to support the company’s next phase of growth and operations at its alcohol-to-jet (ATJ) sustainable aviation fuel (SAF) production facility in Soperton, Georgia—Freedom Pines Fuels.

The first close occurred Oct. 14 and the financing is expected to close in full by December.

The financing is supported by LanzaTech Global Inc., Vinod Khosla and the LanzaJet board, and is part of a broader recapitalization and deleveraging of LanzaJet undertaken by its shareholders and existing investors.

As part of the transactions, LanzaTech will significantly increase its ownership of LanzaJet, reinforcing its commitment to LanzaJet’s next phase of commercial growth.

Freedom Pines Fuels is the world’s first commercial-scale ATJ production facility, with a production capacity of 10 million gallons per year and has already produced SAF and renewable diesel that meet ASTM specifications, according to LanzaJet.

The new capital will help Freedom Pines Fuels to scale production and deliver SAF to global customers, “further emphasizing LanzaJet’s leading role in the SAF industry,” the company said.

LanzaJet’s technology can convert ethanol from a wide range of sources into SAF, creating a global pathway that is not tied to any single producer, geography or feedstock.

This includes established ethanol supply from markets such as Brazil and the United States, regionally available feedstocks that can support local production, and harder-to-access waste-carbon resources that LanzaTech’s gas-fermentation platform can convert into ethanol, the company noted.

“This flexibility allows LanzaJet projects to draw on the most competitive and appropriate ethanol supply in each market, while also accessing qualifying low-carbon and waste-based feedstocks for mandated markets, including in the U.K. and European Union,” LanzaJet stated.

LanzaTech CEO Jennifer Holmgren will continue as chair of the LanzaJet board and support delivery of the company’s “go-forward” plan as interim CEO*.

LanzaJet said the board believes continuity, focus and proven execution experience are essential at this stage of the company’s growth. 

“LanzaJet has exceptional people, differentiated technology and an important role to play in scaling sustainable aviation fuel,” Holmgren said. ​“LanzaTech began developing alcohol-to-jet technology in 2012 in partnership with the U.S. DOE’s Pacific Northwest National Laboratory, and since 2020, LanzaJet has had the strong backing of global investors and funders. LanzaTech has taken first-of-a-kind technology to profitable commercial operation. With a larger ownership stake and the board’s full support, we look forward to bringing Freedom Pines Fuels and future LanzaJet plants to the same commercial success.”

Editor’s Note: Earlier this month, Biobased Diesel Daily® reported that LanzaJet CEO Jimmy Samartzis is stepping down to take a new leadership opportunity in the SAF industry.