LanzaTech reaffirms importance of LanzaJet through amended investor agreement

LanzaTech Global Inc. announced in late October that the investors in its affiliate LanzaJet have entered into an amended agreement on the long-term collaboration and commercial rollout of sustainable aviation fuel (SAF).

The amended agreement introduces changes in investment dynamics and share distributions.

Subject to meeting development milestones at the Freedom Pines facility in Georgia, LanzaTech will receive two tranches of shares in LanzaJet.

If LanzaJet were to go public or be sold before LanzaTech receives these two tranches of shares, LanzaTech’s ownership stake will automatically increase to 50 percent with no further investment required, LanzaTech stated.

Additionally, the update includes modifications to the 2020 intellectual-property and technology-license agreement.

Notably, it extends the agreement through Dec. 31, 2031, removes LanzaTech’s right to terminate, and includes an obligation on LanzaTech to transfer the license directly to LanzaJet.

The amendment also eliminates restrictions on the licensing of LanzaJet’s technology, which was originally developed by LanzaTech and improved by LanzaJet, to third-party sublicensees, broadening the technology’s reach and application.

With LanzaJet’s growth anchored in the alcohol-to-jet pathway, LanzaTech said the companies are well-positioned to scale meaningful volumes of SAF through integration of LanzaTech’s extensive carbon-recycling initiatives that supply critical waste-based ethanol feedstock.

“This amendment reinforces LanzaTech’s foundational role as both the technology provider and a strategic shareholder pivotal to LanzaJet’s growth towards full commercial operations,” said LanzaTech CEO Jennifer Holmgren.

“The shareholder’s enhanced agreements with LanzaJet not only underscore the confidence of our global partners in LanzaJet but also reaffirm our collective commitment to decarbonize aviation,” she added.

“By strengthening alignment for long-term growth, market adoption and shareholder value, we continue to drive innovation and advance our shared mission,” Holmgren said.