LanzaTech to build 300-ton bagasse ethanol plant in India
LanzaTech has won a contract to build an ethanol plant in Uttar Pradesh using sugarcane bagasse under India’s PM JI-VAN Yojana. The project will deploy carbon recycling technology to produce ethanol and biochar, supporting rural circular economies and marking LanzaTech’s second major expansion in India.
SKOKIE, Ill. – LanzaTech Global, Inc (NASDAQ:LNZA) has secured a contract to construct an ethanol production facility in Uttar Pradesh, India, that will process up to 300 tons of sugarcane bagasse daily, according to a press release statement issued Tuesday. The carbon recycling company, with a market capitalization of approximately $129 million, appears undervalued according to InvestingPro analysis, despite facing significant financial challenges including a revenue decline of 31% in the last twelve months and ongoing profitability concerns.
The project, awarded by Spray Engineering Devices Ltd (SED), will be one of the first private company developments under India’s PM JI-VAN Yojana program, which supports advanced bioethanol production from agricultural waste.
The facility will utilize LanzaTech’s carbon recycling technology alongside oxygen-enriched air gasification technology developed by Ankur Scientific to convert sugarcane waste into ethanol. Operations are expected to begin within two years.
The plant will be integrated into SED’s “Smart Village” concept, designed to capture economic value from renewable power and carbon resources in rural communities. The process is expected to generate nutrient-rich biochar as a byproduct that can be used to improve soil fertility in local farming.
“Waste-based feedstocks can support Prime Minister Modi’s Make in India initiative by boosting the regional domestic manufacture of essential goods and materials,” said Dr. Jennifer Holmgren, LanzaTech’s CEO. While the company pursues expansion, InvestingPro data reveals LanzaTech maintains a moderate debt level with a current ratio of 2.04, indicating its liquid assets exceed short-term obligations. However, the company’s overall financial health is rated as “weak” by InvestingPro’s comprehensive analysis, which examines over 30 key financial metrics available in Pro Research Reports for more than 1,400 US equities.
This marks LanzaTech’s second major project in India, following its technology deployment at Indian Oil Corporation’s Panipat facility. A separate 10-ton daily ethanol production unit using LanzaTech technology is also under development by NTPC in Andhra Pradesh.
The company’s bioreactor technology uses proprietary microbes to convert carbon-rich gases into ethanol, which serves as a building block for fuels and consumer goods. By repurposing agricultural waste that would otherwise be burned, the project aims to support circular economies in sugarcane-growing regions.
In other recent news, LanzaTech Global, Inc. has successfully secured $20 million through a private placement of common stock, with participation from investors including SiteGround. This funding adds to the $40 million investment obtained in May 2025, bringing the total recent capital raised to $60 million. The company plans to use these funds to pursue its most valuable opportunities in carbon recycling. Additionally, LanzaTech has reported successful operational results from its waste-to-ethanol pilot plant in Kuji City, Japan. The facility, which has been operational since April 2022 and is owned by SEKISUI CHEMICAL CO., LTD., can produce approximately 400 tons of ethanol annually. Furthermore, LanzaTech has been awarded a €40 million grant from the European Union’s Innovation Fund for a carbon recycling project in Norway, pending the finalization of the grant agreement. This project will involve the deployment of LanzaTech’s second-generation bioreactor at Eramet Norway’s manganese smelter to convert greenhouse gases into ethanol. These developments reflect LanzaTech’s ongoing efforts to advance its carbon recycling initiatives.
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Source : Investing.com
