LanzaTech Global Inc. landed a new investor this week — Carbon Direct Capital — adding $40 million to its war chest.
Chicago-based climate-tech company LanzaTech announced the $40 million investment by the growth equity investment firm, which focuses on carbon management technology, during a second-quarter earnings call on Thursday. The new funding will be used to fund growth and working capital.
LanzaTech CEO Jennifer Holmgren said that she expects the company to continue to ramp its production capacity with new projects moving to construction by the end of 2024.
"A question I'm often asked by customers and stakeholders is what gives you confidence that you'll be successful over the long-term?" she said during the earnings call. "While there are many reasons that stand out, number one, we have a commercially proven and diverse technology with six commercially operating facilities. We're not only ramping up production volumes and generating licensing revenues, but we also have over half a decade of operational experience."
LanzaTech (Nasdaq: LNZA) turns carbon waste into sustainable chemicals and went public in 2022 in a merger with a special purpose acquisition company.
The company also announced it increased its ownership stake in LanzaJet from 23% to approximately 37% during the second quarter of 2024 — a move that Holmgren said "was always part of the plan." Spun out of LanzaTech in 2020, LanzaJet continues to perform strongly on its own, opening the world's first ethanol-to-sustainable aviation fuel plant earlier this year and getting named to Time's 100 Most Influential Companies of 2024 for its work in accelerating the shift to cleaner jet fuel.
LanzaTech hopes to continue to attract large customers worldwide that are interested in cleaner fuel production at scale and recently won a contract by Jackson Green to provide its technology to covert CO2 emissions into ethanol to India's largest power generation utility company.
LanzaTech reported $17.4 million revenue for the second quarter, a 35% increase from the second quarter last year, which was attributed to the company's biorefining business.
The update comes after the company fell below its 2023 expectations, which resulted in several executive moves that reduced the company's head count by 5%.
After the bump, LanzaTech delivered "solid financial results" for the second quarter that were ahead of expectations, Holmgren said during the earnings call.
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