Exclusive: LanzaJet raising $100M forethanol jet fuel
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Flashback: LanzaJet in February closed a $30 million investment from Southwest Airlines.
riving the news: The company plans to close the funding round this quarter, a person familiar with the matter tells Axios. The startup, a spin-off of carbon recycling startup LanzaTech, began raising at the end of 2023. It’s aiming to achieve profitability in 2025.
Reality check: It’ll be at least a decade, if ever, until ethanol-based fuel can compete on cost with conventional jet fuel without government incentives.
They include a UK effort with British Airways, one in India with national oil company Indian Oil, another in Japan with conglomerate Mitsui, and a project with Jet Zero Australia, backed by Airbus and airline Qantas.
How it works: LanzaJet is largely licensing its tech and providing project development support, rather than building most of the projects itself.
It’s occasionally opening plants through joint ventures, such as the overseas projects with Indian Oil and British Airways. It also sells the catalyst ingredients needed to make fuel from ethanol and has developed a modular version of its biorefinery systems.
Each LanzaJet plant is funded separately, according to a source familiar. Plant project costs can range from $400 million to $1.5 billion.
Source Link : https://www.axios.com/pro/climate-deals/2024/04/22/lanzajet-100-million-ethanol-saf-jet-fuel
