Core Insights - LanzaTech Global, Inc. reported a significant decline in revenue for both the fourth quarter and full year of 2024 compared to 2023, primarily due to project completion and timing delays in large biorefining projects [3][4][5] Financial Results - Fourth-quarter 2024 revenue was $12.0 million, down from $20.5 million in the same quarter of 2023, while full-year revenue decreased to $49.6 million from $62.6 million [3][4][5] - Cost of revenue for the fourth quarter was $5.6 million, compared to $12.0 million in Q4 2023, leading to a gross profit of $6.5 million for Q4 2024 [7] - Operating expenses increased to $33.5 million in Q4 2024 from $27.1 million in Q4 2023, driven by project-related expenses [8] - The net loss for Q4 2024 was $27.0 million, compared to a net loss of $18.7 million in Q4 2023, with full-year net loss at $137.7 million versus $134.1 million in 2023 [9][10] Adjusted EBITDA - Adjusted EBITDA losses for Q4 2024 were $21.2 million, compared to $19.6 million in Q4 2023, with full-year adjusted EBITDA losses of $88.2 million versus $80.1 million in 2023 [10][29] Revenue Breakdown - Joint Development Agreement (JDA) and Contract Research revenue for Q4 2024 was $1.7 million, down from $4.2 million in Q4 2023, while CarbonSmart revenue increased to $3.9 million from $2.1 million in the same period [13] Balance Sheet and Liquidity - As of December 31, 2024, LanzaTech had $58.1 million in total cash and investments, a decrease from $89.1 million at the end of Q3 2024 [11] - Total assets decreased to $174.7 million from $241.6 million in 2023, with total liabilities increasing to $161.2 million from $127.2 million [21][22] Strategic Focus - The company is shifting its operational focus from research and development to global deployment, aiming to enhance its cost structure and liquidity through capital raising and strategic partnerships [5][8]

Financial Performance - LanzaTech reported total revenue of $12.0 million for the fourth quarter of 2024, down from $20.5 million in the same period of 2023, and full-year revenue of $49.6 million compared to $62.6 million in 2023, primarily due to project completions and timing delays in large projects [4][5] - The cost of revenue for the fourth quarter and full year of 2024 was $5.6 million and $26.0 million, respectively, compared to $12.0 million and $45.0 million for the same periods in 2023, resulting in a gross margin of 54% for Q4 2024 [6] - Operating expenses increased to $33.5 million for the fourth quarter and $132.6 million for the full year of 2024, compared to $27.1 million and $124.0 million in 2023, driven by project-related expenses [7] Net Loss and Adjusted EBITDA - The net loss for the fourth quarter of 2024 was $27.0 million, compared to a loss of $18.7 million in Q4 2023, with a full-year net loss of $137.7 million versus $134.1 million in 2023, attributed to non-cash expenses and reduced revenue [8] - Adjusted EBITDA losses were $21.2 million for Q4 2024 and $88.2 million for the full year, compared to losses of $19.6 million and $80.1 million in 2023, reflecting similar factors affecting revenue [9] Balance Sheet and Liquidity - As of December 31, 2024, LanzaTech had $58.1 million in total cash, restricted cash, and investments, down from $89.1 million at the end of Q3 2024 [10] - Total assets decreased to $174.7 million in 2024 from $241.6 million in 2023, with total liabilities increasing to $161.2 million from $127.2 million [17] Revenue Breakdown - Revenue from Joint Development Agreement (JDA) and Contract Research for Q4 2024 was $1.7 million, down from $4.2 million in Q4 2023, while CarbonSmart revenue increased to $3.9 million in Q4 2024 from $2.1 million in Q4 2023, driven by direct fuel sales [12][12] Strategic Focus - The company is shifting its operational focus from research and development to global deployment, aiming to enhance its cost structure and evaluate liquidity-enhancing initiatives [5][6]

Core Viewpoint - LanzaTech Global, Inc. has received a non-binding acquisition offer from Carbon Direct Capital Management at a price of $0.02 per share, and the Board of Directors will evaluate this proposal along with other strategic options to maximize stakeholder value [1][2]. Company Overview - LanzaTech Global, Inc. is a leading carbon recycling company that transforms waste carbon into sustainable fuels, chemicals, materials, and protein for everyday products. The company utilizes bio-recycling technology to capture carbon emissions from energy-intensive industries, preventing them from entering the atmosphere [3]. - The captured carbon is repurposed as a clean alternative to virgin fossil carbon in various products, including household cleaners, clothing fibers, packaging, and fuels. LanzaTech aims to promote a circular carbon economy through partnerships across the global supply chain [3].

Core Insights - LanzaTech is transitioning from an innovation hub to a profitable enterprise, aiming for approximately $30 million in annual cash operating expense reductions [1][4] - The company is focusing on globally deploying proven technology and pursuing high-impact commercial projects aligned with profitability [2][4] - A strategic spin-out of its synthetic biology platform, LanzaX, and evaluation of scale-up opportunities for LanzaTech Nutritional Protein (LNP) are part of this transition [2] Financial and Operational Updates - The fourth quarter and full-year 2024 earnings call has been rescheduled to March 31, 2025, to align with the filing of the Annual Report on Form 10-K [1][5] - The company is implementing measures to evaluate its global footprint, which may lead to a workforce reduction of approximately 10 to 15 percent [4] Project Developments - High-priority commercial projects include waste-based ethanol-to-Sustainable Aviation Fuel (SAF) facilities in the UK and EU, each with a capacity of 30 million gallons per year [3] - The LanzaTech and LanzaJet CirculAir™ solution will be utilized in these projects to create an efficient offering for the aviation industry [3]

Core Viewpoint - LanzaTech Global, Inc. will release its fourth quarter and full-year 2024 financial results on March 17, 2025, before the U.S. financial markets open [1] Financial Results Announcement - The financial results will be announced before the U.S. markets open on March 17, 2025 [1] - A conference call is scheduled for the same day at 8:30 a.m. Eastern Time [1] Conference Call Access - The conference call can be accessed via a live webcast on LanzaTech's Investor Relations website [2] - Domestic callers can join the call by dialing (800) 225-9448, while international callers can dial (203) 518-9708 using the conference identification code LANZA [2] Replay Information - A replay of the conference call will be available shortly after it ends, accessible for domestic callers at (844)-512-2921 and international callers at (412)-317-6671 using access identification code 11157950 [3] - The replay will be available until 11:59 p.m. Eastern Time on March 31, 2025 [3] Company Overview - LanzaTech is a carbon recycling company that transforms waste carbon into sustainable fuels, chemicals, materials, and protein [4] - The company captures carbon from energy-intensive industries to prevent emissions and repurposes it as a clean alternative to virgin fossil carbon [4] - LanzaTech collaborates with various companies, including ArcelorMittal and Coty, to promote a circular carbon economy [4]

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]