LanzaTech increases LanzaJet ownership stake to 53%

LanzaTech Global Inc. (NASDAQ: LNZA) announced it has increased its ownership in LanzaJet Inc., a sustainable aviation fuel producer, to 53%. The company received its final tranches of LanzaJet common stock on December 16, according to a press release statement.

The shares were issued under the Second Amended & Restated LanzaJet Investment Agreement and represent the final equity tranches under that agreement. The issuance did not involve new capital investment by LanzaTech and followed pre-agreed terms allowing LanzaJet to further sublicense Alcohol-to-Jet technology in exchange for additional equity.

The ownership increase coincides with LanzaJet's Freedom Pines Fuels facility in Soperton, Georgia, which has begun producing ASTM-certified sustainable fuels including Synthetic Paraffinic Kerosene and Renewable Diesel. The facility is described as the first commercial-scale plant to produce jet fuel from ethanol.

LanzaTech originally spun out LanzaJet in 2020. The company's technology enables production of ethanol from various carbon sources, including agricultural residues, which LanzaJet converts to sustainable aviation fuel using its Alcohol-to-Jet technology.

"The success of LanzaJet's Freedom Pine's facility shows that ethanol from diverse domestic and recycled feedstocks can be converted into sustainable aviation fuel," said Dr. Jennifer Holmgren, CEO of LanzaTech and Chair of LanzaJet.

LanzaTech noted that the sustainable aviation fuel industry remains capital-intensive and subject to regulatory and market changes. The company stated that its increased equity interest does not change governance or control arrangements.

The company accounts for its LanzaJet interest under the equity method of accounting, recognizing income or loss from equity method investments in its consolidated financial statements.

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