Core Insights - The U.S. Department of Energy (DOE) has committed up to $200 million in federal funding for Project SECURE, which aims to create sustainable ethylene from CO2 utilizing renewable energy [1][4] - Project SECURE is a collaboration between Technip Energies and LanzaTech, focusing on recycling captured carbon dioxide with low carbon intensity hydrogen to produce sustainable ethanol and ethylene [2][5] - The project will initially be deployed in the U.S. Gulf Coast region, with significant potential for replication in ethylene production facilities worldwide [2][5] Funding and Project Phases - The DOE's Office of Clean Energy Demonstrations (OCED) has awarded nearly $20 million for Phase 1 of the project, which includes a Front-End Engineering Design (FEED) study and community engagement [4][6] - The total funding of $200 million will cover the design, engineering, construction, and equipment for the commercial-scale integrated technology unit throughout the project's duration [4][6] Technological Impact - LanzaTech's carbon recycling technology can be applied across various industries, allowing for the conversion of waste carbon into valuable products rather than releasing it into the atmosphere [3][5] - The project aims to enhance the efficiency and value of existing ethylene production infrastructure while contributing to job creation and supporting local communities [5][6] Industry Context - Ethylene is a critical building block for numerous chemicals and materials, with a growing demand expected due to population increases by 2050 [5] - Technip Energies holds a significant market position, with over 40% of the global ethylene steam crackers utilizing its technology [2][9]

Financial Data and Key Metrics - Q3 2024 revenue was $9.9 million, $7 million below target, primarily due to the delay in a LanzaJet sublicense event and lower-than-expected CarbonSmart revenue despite it more than doubling to $2.2 million [9][10] - Biorefining revenue was $5.9 million, similar to Q2 excluding the $7.9 million from the LanzaJet share consideration in Q2 [36] - CarbonSmart revenue increased to $2.2 million in Q3 from $0.9 million in Q2, driven by incremental direct fuel product sales [40] - Gross margin was 18% due to lower-margin CarbonSmart sales and the absence of high-margin revenue from another LanzaJet share issuance [43] - Adjusted EBITDA loss was $27.1 million, compared to a $19.1 million loss in Q3 2023, driven by lower revenues and higher project development expenses [45] - Cash position at the end of Q3 was $89.1 million, up from $75.8 million in Q2, due to cost control and a $40 million investment from Carbon Direct Capital [46][47] Business Line Performance - Biorefining revenue was $5.9 million, down $6.5 million YoY due to lower engineering services revenue compared to Q3 2023 [37] - Joint development and contract research revenue was $1.8 million, down $1 million sequentially due to the completion of government projects [38] - CarbonSmart revenue grew significantly to $2.2 million, driven by increased access to ethanol volumes and improved supply chain structure [40][41] Market Performance - Ethanol pricing in China was depressed, impacting CarbonSmart revenue despite increased access to volumes [10][41] - The global market for sustainable aviation fuel (SAF) produced from ethanol is growing, with projects underway in the UK, EU, India, Australia, and New Zealand [24] - The company signed a master licensing agreement with SEKISUI to develop waste-to-ethanol plants across Japan, expanding its global footprint [26] Strategic Direction and Industry Competition - The company is evolving its business model to develop and finance its own projects, gaining more control over timing and performance, and capturing greater upside [11][12] - Key projects include the Norway project with Brookfield Asset Management, the joint venture with Olayan Group in the Middle East, and Project Drake, a 30 million gallon per year ethanol-to-SAF project in the EU [13][14][15] - The company is expanding its platform capabilities, including the production of single-cell protein (LanzaTech Nutritional Protein) from CO2, targeting the $1 trillion alternative protein market [29][30] Management Commentary on Operating Environment and Future Outlook - Management highlighted the dynamic market environment and the need to accelerate commercial activities and reduce costs [10] - The company expects significant revenue potential from Project Drake, the Norway project, and Project SECURE in Q4, with a wide range of possible outcomes due to timing uncertainties [31][32][50] - Management is confident that the evolution of the business model will improve development timelines and enhance short-term and long-term economics [33][34] Other Important Information - The company announced a two-stage ethanol off-take agreement with ArcelorMittal, with potential annual revenue of $6 million in the short term and $10-20 million over five years [20][21] - The company is developing partnerships to aggregate demand for LanzaTech Nutritional Protein, targeting animal feed, pet food, and human nutrition markets [30] Q&A Session Summary Question: Revenue Components and Project Drake - The $5 million exclusivity fee for Project Drake is expected to be recognized as revenue in Q4 and is incremental to the $10 million base business [55][56] Question: Cost Savings Initiatives - Cost savings initiatives are overshadowed by project development expenses, but the company has reduced OpEx line items relative to budget [58][61] Question: Business Model Evolution and Infrastructure Partners - The company is partnering with infrastructure investors like Brookfield and Olayan to finance projects, retaining significant upside participation [63][64][65] Question: Norwegian Project and Revenue Recognition - The $20 million revenue from the Norway project is a catch-up for costs incurred and is expected to be recognized in Q4, with long-tail revenue potential [82][83] Question: Nutritional Protein Product - LanzaTech Nutritional Protein contains all 20 amino acids and is 85% protein, with potential applications in animal feed, pet food, and human nutrition [99][100][101] Question: Project SECURE and Ethylene Production - Project SECURE is progressing well, with a primary site identified, and the company is exploring opportunities to produce both ethylene and propylene from ethanol and isopropanol [107][108][109] Question: Freedom Pines SAF Plant - The Freedom Pines SAF plant has started FEED but is not yet producing SAF [112] Question: Impact of U.S. Elections on Business - The company is geographically diversified, with projects in Europe, the Middle East, and Asia, reducing reliance on U.S. policy changes [114][115][116]

LanzaTech Reports Third-Quarter 2024 Financial Results, Updates 2024 Outlook, and Expands Business Model to Accelerate Revenue Growth Company expands technology licensing business model to incorporate incremental participation in biorefining value chain as demonstrated by entering into ethanol off-take agreement with ArcelorMittal and advancement of key commercial projects being developed CHICAGO, IL (November 8, 2024) – LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech" or the "Company"), the carbon recycl ...

Financial Performance - For the three months ended September 30, 2024, LanzaTech reported revenue of $9.943 million, a decrease of 49% compared to $19.605 million for the same period in 2023[199]. - The net loss for the three months ended September 30, 2024, was $(57.431) million, compared to a net loss of $(25.326) million for the same period in 2023, representing an increase in losses of 127%[199]. - One-time revenue for the three months ended September 30, 2024, was $8.414 million, down 53% from $18.075 million in the same period in 2023[199]. - For the nine months ended September 30, 2024, total revenue was $37.562 million, an 11% decrease from $42.168 million for the same period in 2023[200]. - Net loss for Q3 2024 was $57.4 million, compared to a net loss of $25.3 million in Q3 2023, representing a 127% increase in loss[224]. - Net loss for the nine months ended September 30, 2024, was $110.7 million, compared to a net loss of $115.4 million in the same period in 2023, reflecting a 4% decrease in loss[232]. - The company reported a net loss of $(110,738) thousand for the nine months ended September 30, 2024, compared to $(115,424) thousand for the same period in 2023[277]. - Adjusted EBITDA for the three months ended September 30, 2024, was $(27.081) million, compared to $(19.062) million for the same period in 2023, indicating a 42% increase in losses[199]. - Adjusted EBITDA for the nine months ended September 30, 2024 was $(66,981) thousand, compared to $(66,398) thousand for the same period in 2023[277]. Revenue and Cost Analysis - Total revenue decreased by $9.7 million, or 49%, in Q3 2024 compared to Q3 2023, primarily due to a $6.1 million decrease in revenue from engineering and other services contracts[225]. - Cost of revenue decreased by $6.2 million, or 43%, in Q3 2024 compared to Q3 2023, driven by a $5.1 million decrease in cost of sales for engineering and other services[226]. - Total revenue decreased by $4.6 million, or 11%, in the nine months ended September 30, 2024, compared to the same period in 2023, primarily driven by an $11.1 million decrease in revenue from engineering and other services[233]. - Cost of revenue decreased by $12.6 million, or 38%, in the nine months ended September 30, 2024, compared to the same period in 2023, mainly due to a $12.7 million decrease in cost of sales for engineering and other services[234]. Expenses - Research and development expenses increased by $5.4 million, or 32%, in Q3 2024 compared to Q3 2023, mainly due to a $4.9 million increase in R&D services related to project development costs[227]. - Selling, general and administrative expenses decreased by $0.4 million, or 3%, in Q3 2024 compared to Q3 2023, primarily due to a decrease in professional services fees[228]. - R&D expenses increased by $8.7 million, or 17%, in the nine months ended September 30, 2024, compared to the same period in 2023[235]. - SG&A expenses decreased by $6.9 million, or 17%, in the nine months ended September 30, 2024, compared to the same period in 2023[236]. Cash Flow and Financing - Total cash, cash equivalents, and restricted cash decreased by $15.3 million, or 20%, as of September 30, 2024, compared to December 31, 2023[239]. - The company issued and sold $40.2 million of convertible notes as of August 6, 2024, under a Convertible Note Purchase Agreement[252]. - The Convertible Note bears interest at a fixed rate of 8.00% per annum, maturing on August 6, 2029[254]. - The company has entered into an At Market Issuance Sales Agreement with B. Riley Securities for an aggregate offering price of up to $100 million[251]. - The company is seeking additional financing under the Convertible Note Purchase Agreement but currently has no commitments from investors[257]. - For the nine months ended September 30, 2024, net cash used in operating activities was $(69,384) thousand, a decrease of $12,181 thousand or 15% compared to $(81,565) thousand in the same period of 2023[263][264]. - Net cash provided by investing activities was $14,130 thousand for the nine months ended September 30, 2024, compared to net cash used of $(56,495) thousand in the same period of 2023, reflecting a change of $70,625 thousand[263][265]. - Net cash from financing activities was $40,224 thousand for the nine months ended September 30, 2024, down from $147,272 thousand in the same period of 2023, a decrease of $107,048 thousand or 73%[263][266]. Operational Insights - LanzaTech's capacity increased from 244 thousand tonnes per annum as of September 30, 2023, to 308 thousand tonnes per annum as of September 30, 2024, reflecting an addition of 64 thousand tonnes[202]. - The company is evolving its technology licensing model to include greater ownership and operatorship in the biorefining value chain, enhancing control over development and financing[191]. - LanzaTech has established six commercial waste gas-to-ethanol plants since 2018, with ongoing developments in various countries[191]. - The company launched CirculAir™, a new solution for producing sustainable aviation fuel and renewable diesel, in collaboration with LanzaJet[191]. Risks and Challenges - The company expects to continue generating operating losses and net cash outflows from operating activities in the near term[258]. - The company believes existing cash and cash equivalents will be sufficient to fund operations for the next 12 months, but liquidity assumptions may prove incorrect[259]. - The company may require additional financing to meet operating requirements, which could lead to dilution for existing stockholders if raised through equity[260][261]. - Demand for CarbonSmart products is indirectly affected by fossil fuel and first-generation bio-fuel prices, with a potential decrease in demand as prices drop[283]. - Credit risk exists due to concentration of receivables with a limited number of significant customers, which may adversely affect gross margin and cash flows if contracts are canceled[284]. - The company has experienced volatility in common stock prices, posing a risk for future equity funding efforts[285]. - Inflation impacts the company and its customers by increasing costs related to labor, laboratory supplies, consumables, and capital expenditures[286].

LanzaTech Global, Inc. (LNZA) came out with a quarterly loss of $0.29 per share versus the Zacks Consensus Estimate of a loss of $0.13. This compares to loss of $0.13 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -123.08%. A quarter ago, it was expected that this company would post a loss of $0.12 per share when it actually produced a loss of $0.14, delivering a surprise of -16.67%.Over the last four quarters, the company ha ...

CHICAGO, Oct. 31, 2024 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech"), the carbon recycling company transforming above-ground carbon into sustainable fuels, chemicals, materials, and proteins, today announced plans to develop a commercial-scale Carbon Capture and Utilization ("CCU") facility (the "facility", "plant", or "project") at Herøya Industrial Park in Porsgrunn, Norway. The plant will produce ethanol and is expected to begin operations in 2028. Eramet will supply furnace gas ...

CHICAGO, Oct. 16, 2024 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech" or the "Company"), the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein, has been awarded $3 million by the U.S. Department of Energy's (DOE) Office of Fossil Energy and Carbon Management (FECM), as part of a broader $29 million investment program to advance its carbon management priorities. LanzaTech's Project ADAPT ("Accelerating Decarbonization via Adva ...

CHICAGO, Oct. 15, 2024 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech" or the "Company"), the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein, today announced that it will issue its third-quarter 2024 financial results before financial markets in the United States open on Friday, November 8, 2024. A conference call will be held that same day at 8:30 a.m. Eastern Time to review the Company's financial results, discuss recent ...

CHICAGO, Oct. 01, 2024 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech" or the "Company"), the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein, today announced its plans to expand its biorefining platform capabilities to include operations that produce LanzaTech Nutritional Protein ("LNP") as the primary product. LNP is a microbial protein that is a nutrient-rich alternative to plant and animal-based proteins. By using a new ...

CHICAGO, Sept. 24, 2024 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) ("LanzaTech"), the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, and materials, and Woodside Energy Group Ltd. (ASX, NYSE, LSE: WSD) ("Woodside"), the global energy company founded in Australia providing reliable and affordable energy to help people lead better lives, today jointly announced that Dr. Jennifer Holmgren, CEO of LanzaTech, and Meg O'Neill, CEO of Woodside, will participate ...