Skokie-based renewable energy startup LanzaTech launched a new subsidiary focused on producing sustainable aviation fuel with the help of a $50 million cash infusion.
The spinout, called LanzaJet, is constructing a plant in Soperton, Georgia, that will produce 10 million gallons per year of sustainable aviation fuel and renewable diesel for the commercial market.
The $50 million in funding is made up of $15 million from Canadian energy company Suncor Energy, $10 million from Japanese investment firm Mitsui & Co., as well as a $14 million grant from the U.S. Department of Energy. All Nippon Airways, the largest airline in Japan, also invested in the round.
LanzaJet will be led by recently hired CEO Jimmy Samartzis. He also currently serves as the director of the board for the Fermilab, a U.S. Department of Energy national laboratory in Batavia, Illinois.
Prior to that, Samartzis held various industry roles, including with Airlines for America and the International Air Transport Association. He also worked at United Airlines for a decade, holding multiple executive roles in operations, commercial, corporate affairs, strategy, renewables and safety.
“The launch of LanzaJet marks a historic milestone in the clean energy transition that is underway globally,” Samartzis said in a statement. “I’ve been part of many renewable energy and sustainability firsts over the last decade, and this one is the most exciting.”
LanzaTech was originally launched by Richard Forster and Sean Simpson in 2005. The company is now led by CEO Jennifer Holmgren. Besides making renewable jet fuel, LanzaTech’s technology also turns waste into chemical feedstock and other chemicals that can be used to build plastics.
Last year, the startup raised $72 million in a Series E round from Novo Holdings, a Danish investment firm that backs life science companies. To date, LanzaTech has raised more than $350 million.
“We believe this technology will provide a solid foundation for the commercial production of sustainable aviation fuel and renewable diesel,” said Mark Little, the president and CEO of Suncor, in a statement. “These products are very complementary to our existing product mix and we see growth potential in both North American and international markets.”
