Core Insights - Haffner Energy, LanzaTech, and LanzaJet are collaborating to explore joint projects for biomass-to-Sustainable Aviation Fuel (SAF) production, covering the entire value chain [1][2] - The partnership aims to develop commercial plants, technology licenses, and funding support for specific SAF projects [2] Company Summaries - Haffner Energy has 31 years of experience in designing and operating clean fuel solutions using various biomass residues, including agricultural and municipal waste [4][9] - LanzaJet possesses exclusive Alcohol-to-Jet (ATJ) technology and has been recognized as one of the TIME100 Most Influential Companies in 2024, having opened the world's first commercial-scale ATJ plant in the U.S. [5][11] - LanzaTech specializes in carbon management solutions, transforming waste carbon into valuable materials like ethanol, which is essential for SAF production through the ATJ pathway [6][12] Technology and Innovation - The collaboration leverages LanzaJet's CirculAir™ technology, which integrates proprietary technologies from LanzaJet and LanzaTech to produce low-carbon SAF from diverse feedstocks, including biomass [3][6] - Haffner Energy's technology is biomass-agnostic, allowing for a broader range of feedstocks to be utilized in SAF production [3][7] Economic and Environmental Impact - The partnership is expected to drive innovation and economic growth, creating well-paid jobs in rural areas and generating additional value from agricultural and forestry waste [8] - The combined technologies aim to enhance the scalability of SAF production, addressing the growing demand for sustainable aviation fuels [6][8]

Core Viewpoint - LanzaTech Global, Inc. has appointed Reyad Fezzani to its Board of Directors, bringing over 30 years of experience in global energy markets and renewable energy innovation, which is expected to enhance the company's growth and deployment of carbon management technologies [1][2][4] Company Developments - The appointment of Reyad Fezzani increases LanzaTech's Board of Directors to eight members, reinforcing the company's commitment to strong governance and diverse leadership [4] - Fezzani's background includes significant roles at BP, where he led renewable energy projects, and his current leadership at Regenerate Power LLC, focusing on utility-scale renewable energy projects [2][3] Strategic Focus - LanzaTech aims to increase its participation in Power-to-X projects and capitalize on its waste-to-SAF solution, CirculAir, launched in 2024 with LanzaJet [2] - The company is dedicated to transforming waste carbon into sustainable fuels, chemicals, materials, and protein, contributing to a circular carbon economy [5]

Core Viewpoint - LanzaTech Global, Inc. is planning to spin out its synthetic biology platform, LanzaX, into a joint venture with Tharsis Capital to enhance project development and focus on core biorefining operations [1][2][4] Group 1: Spin-Out and Joint Venture - The formation of LanzaX aims to accelerate project development and sharpen focus on the growth priorities of LanzaTech's core biorefining operations, including Sustainable Aviation Fuels (SAF) projects [2] - LanzaTech has entered into an agreement with Tharsis Capital to assist in the spin-out and explore investment opportunities for LanzaX [3] - The spin-out will allow LanzaX to access necessary capital for its project pipeline, which includes acetone, isopropanol, and high-value specialty products [4] Group 2: Financial Implications - The spin-out is expected to reduce LanzaTech's cost structure by approximately $8 million annually, primarily due to the transfer of over 30 full-time employees to LanzaX [5] - The full financial benefits from the spin-out are anticipated to be realized during 2026 and beyond [5] Group 3: Leadership Changes - LanzaTech appointed Justin Pugh as the new Interim Chief Financial Officer to streamline growth priorities and focus on cost reductions [1][8] - Mr. Pugh has over 15 years of experience in finance and strategy, with a background in renewables companies [9] Group 4: Strategic Vision - The collaboration with Tharsis Capital is expected to amplify LanzaTech's progress in sustainable chemical production by leveraging shared goals and resources [6] - The creation of LanzaX is seen as a transformational step towards establishing a leading biomanufacturing platform in sustainable chemicals [6]

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]

Financial Performance - Third-quarter 2024 revenue was $9.9 million, down from $19.6 million in third-quarter 2023, primarily due to a timing delay in a sublicensing event expected to generate approximately $8.0 million[6]. - The net loss for third-quarter 2024 was $(57.4) million, compared to $(25.3) million in third-quarter 2023, largely due to non-cash expenses on financial instruments and reduced revenue[12]. - Adjusted EBITDA loss for third-quarter 2024 was $(27.1) million, compared to $(19.1) million in third-quarter 2023, reflecting the same revenue reduction factors[13]. - Total revenue for Q3 2024 was $9,943,000, a decrease of 49.3% compared to $19,605,000 in Q3 2023[38]. - Revenue from contracts with customers and grants was $5,199,000, down from $14,162,000 year-over-year[38]. - The company reported a loss from operations of $32,957,000 for Q3 2024, compared to a loss of $24,595,000 in Q3 2023[38]. - The total net loss for the year ending September 2024 was $110,738 thousand, compared to $115,424 thousand for the same period in 2023[45]. Expenses and Liabilities - Operating expenses for third-quarter 2024 were $34.8 million, up from $29.8 million in third-quarter 2023, driven by project-related expenses[11]. - Research and development expenses increased to $22,006,000 from $16,645,000, representing a 32.5% increase[38]. - Total liabilities increased significantly to $202.6 million from $127.2 million, marking an increase of approximately 59%[36]. - The company reported a current liability total of $46.9 million, up from $27.8 million, indicating an increase of approximately 68.8%[36]. - Total cost and operating expenses decreased to $42,900,000 from $44,200,000 year-over-year, reflecting cost management efforts[38]. Cash and Investments - The company had $89.1 million in total cash and investments as of September 30, 2024, an increase from $75.8 million at the end of the previous quarter[20]. - Cash and cash equivalents decreased to $58.7 million from $75.6 million, a reduction of about 22.3%[36]. - Cash and cash equivalents at the end of the period were $60,967,000, down from $92,070,000 at the end of Q3 2023[41]. - Cash used in operating activities for the nine months ended September 30, 2024, was $69,384,000, an improvement from $81,565,000 in the same period of 2023[41]. Strategic Initiatives - The company is expanding its business model to include more project ownership and financing, aiming to enhance cash flow generation and profitability[4]. - LanzaTech is actively evaluating material cost reduction opportunities and reallocating resources to accelerate commercial activities[2]. - The company continues to focus on its strategic initiatives despite the financial losses reported[46]. Future Projects and Revenue Drivers - The company entered into a two-stage ethanol off-take agreement with ArcelorMittal, which includes a one-year contract with potential revenue of $6.0 million and a five-year contract potentially generating $10.0 million to $20.0 million annually[15]. - Fourth-quarter 2024 potential revenue drivers include approximately $20.0 million from a project in Norway and $4.0 million from Project SECURE[22]. - Project Drake, an EU-based ethanol-to-sustainable aviation fuel project, is expected to produce 30 million gallons per year and is anticipated to reach Final Investment Decision (FID) in 2025[16]. Adjusted EBITDA and Financial Metrics - Adjusted EBITDA is used as a key measure to evaluate operating performance, although it is not prepared in accordance with US GAAP[31]. - LanzaTech's management emphasizes that adjusted EBITDA helps identify underlying trends in business performance[32]. - The accumulated deficit grew to $(942.6) million as of September 30, 2024, compared to $(831.9) million at the end of 2023, reflecting an increase of about 13.3%[36]. One-time Costs and Regulatory Matters - One-time costs related to the Business Combination amounted to $410 thousand in the current period, with total non-recurring regulatory costs of $4,472 thousand[46]. - The company expects that the one-time costs related to the Business Combination will not recur in the future[46]. - Regulatory matters included fees related to non-recurring items during the year ended December 31, 2023[46].

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].

Core Viewpoint - LanzaTech Global, Inc. reported a quarterly loss of $0.29 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.13, marking an earnings surprise of -123.08% [1][2] Financial Performance - The company posted revenues of $9.94 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 44.36%, and down from $19.61 million in the same quarter last year [2] - Over the last four quarters, LanzaTech has surpassed consensus EPS estimates only once [2] Stock Performance - LanzaTech shares have declined approximately 63.2% since the beginning of the year, contrasting with the S&P 500's gain of 25.2% [3] - The current Zacks Rank for LanzaTech is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.11 on revenues of $36 million, and for the current fiscal year, it is -$0.48 on revenues of $81.62 million [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable, which may impact future stock performance [6] Industry Context - The Technology Services industry, to which LanzaTech belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a relatively strong industry performance [8]

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 ...