Biotech firm LanzaTech launches LanzaJet, Inc., a company that will produce sustainable aviation fuel (SAF) for a sector requiring climate friendly fuel options as it starts to recover from the impacts of COVID-19. With its approach to commercialization of SAF, LanzaJet will reportedly create regional jobs while enabling global decarbonization of the aviation sector.
Canadian integrated energy company Suncor Energy Inc. and Japanese trading and investment company Mitsui & Co., Ltd. (Mitsui) are reportedly investing $15 million and $10 million, respectively, to establish LanzaJet. The funding will be used to build a demonstration plant that will produce 10 million gallons per year of SAF and renewable diesel starting from sustainable ethanol sources. Production is expected to start in early 2022. This initial investment coupled with participation from All Nippon Airways (ANA) will complement the existing $14 million grant from the U.S. Department of Energy, enabling the construction of an integrated biorefinery at LanzaTech’s Freedom Pines site in Soperton, Georgia. In addition to its equity investment, Suncor is contracted to take a significant portion of the SAF and renewable diesel produced at the facility to provide its jet fuel and distillate customers with sustainable energy solutions.
Investors Suncor and Mitsui are aiming to invest further in the construction of commercial production facilities after the demonstration meets all its technical and economic targets. This novel phased investment approach will see the initial investment followed by a capital call once all the demonstration milestones have been met. This will significantly accelerate commercial deployment at a time when reducing emissions, especially of aviation, is increasingly important and demonstrates a joint commitment to creating a resilient, climate secure future, according to LanzaTech.
Jimmy Samartzis joins the company as CEO, bringing a background in clean energy, public policy, infrastructure and sustainability, as well as a decade at United Airlines including multiple executive roles in operations, commercial, corporate affairs, strategy, renewables and safety. Currently serving as a director on the board for the Fermi National Accelerator Laboratory, he has held various industry roles, including with Airlines for America and the International Air Transport Association and advised the World Travel and Tourism Council.
For more information, visit: www.lanzatech.com
