A Chicago firm that's bringing clean energy to the aviation industry by converting alcohol into jet fuel just received backing from oil giant Shell.
Shell announced Tuesday that it has invested in LanzaJet, a spinoff of Chicago-based LanzaTech that's making sustainable aviation fuel and renewable diesel for the commercial aviation market. Terms of the deal weren't disclosed, but Shell's funding is part of a phased investment approach that will allow the company to make further investments in LanzaJet over time, the company said.
Shell joins other high-profile backers of LanzaJet –which just launched in 2020– including British Airways, All Nippon Airways and Suncor Energy.
LanzaJet is led by CEO Jimmy Samartzis, a former United Airlines VP and a Fermilab board member. The company launched with $50 million in funding and was created after nearly a decade of technology development under parent company LanzaTech, a renewable energy firm founded in 2005. LanzaTech has raised more than $350 million since its launch and is among Chicago's most promising clean tech businesses.
LanzaJet is building a plant in Soperton, Georgia, that can make up to 10 million gallons of jet fuel per year – with operations scheduled to begin in 2022. With its technology that converts alcohol to jet fuel, the company says it can produce up to 90% of its fuels as sustainable aviation fuel, with the remaining 10% as renewable diesel.
LanzaJet says its fuel delivers more than a 70% reduction in greenhouse gas emissions compared to conventional fossil jet fuel.
LanzaJet says its goal is to help the aviation industry achieve net-zero emissions. The investment is also part of Shell's strategy to become a net-zero emissions energy business by 2050, the company said.
