1. LanzaTech increases its stake in LanzaJet to 53%. 2. LanzaJet successfully produces ASTM-certified sustainable fuels at its commercial-scale facility. 3. The sustainable aviation fuel sector faces capital challenges and regulatory hurdles. 4. LanzaTech's investment aligns with its commitment to sustainable aviation fuel technology. 5. Increased stakeholder interest in LanzaJet could improve market positioning for LNZA.
FAQ
Why Bullish?
The increased ownership in LanzaJet signifies stronger control over sustainable fuel production, likely benefiting LNZA. Historical examples show strategic investments often lead to positive stock performance.
How important is it?
The article highlights a strategic decision directly affecting LanzaTech's operational scope and market positioning, making it significant for investors.
Why Long Term?
LanzaTech's stake in LanzaJet positions the company well for future growth in the sustainable aviation fuel market, which will develop over several years.
LanzaTech Increases Stake in LanzaJet to 53%
Skokie, Ill. – December 22, 2025 (GLOBE NEWSWIRE) – LanzaTech Global, Inc. (NASDAQ: LNZA), a pioneering company in carbon transformation technology, has announced an increase in its ownership in LanzaJet, Inc. to 53%. This significant milestone follows the successful commissioning of sustainable fuel production at LanzaJet’s Freedom Pines Fuels facility located in Soperton, Georgia, which is recognized as the world’s first commercial-scale plant converting ethanol into sustainable aviation fuel (SAF).
Details of Ownership Increase
On December 16, 2025, LanzaTech completed the acquisition of the final tranches of common stock from LanzaJet, thereby raising its shareholding to 53%. This transaction was executed in accordance with the Second Amended & Restated LanzaJet Investment Agreement, marking the last equity issuance outlined under the agreement. Notably, this ownership increase does not involve any new capital investment from LanzaTech.
Strategic Importance of Alcohol-to-Jet Technology
The ownership increment is aligned with a pre-arranged agreement allowing LanzaJet to sublicense its proprietary Alcohol-to-Jet (ATJ) technology in exchange for additional equity granted to LanzaTech. This technology, which originated from collaborations with the Pacific Northwest National Lab and the U.S. Department of Energy, aims to facilitate the production of ethanol from diverse carbon sources, including agricultural waste. This sustainable approach has the potential to reduce aviation emissions by up to 85%.
By utilizing numerous domestic feedstocks, LanzaTech and LanzaJet are enhancing supply chain resilience and energy security, while also driving economic opportunities in rural communities.
Commitment to Sustainable Aviation Fuel Development
Dr. Jennifer Holmgren, CEO of LanzaTech and Chair of LanzaJet, stated, “LanzaTech’s increased stake in LanzaJet comes at an important time for the sustainable fuels sector. The Freedom Pines facility’s success illustrates how ethanol sourced from various feedstocks can effectively be converted into sustainable aviation fuel.” She emphasized that establishing ethanol as a key link between distributed carbon sources and global aviation markets is a crucial advancement.
Market Context and Future Outlook
The sustainable aviation fuel industry faces capital-intensive challenges and is influenced by regulatory and market dynamics. As LanzaJet scales its operations, it, along with LanzaTech, continues to navigate operational and financial pressures. However, LanzaTech's enhanced equity interest does not change LanzaJet's governance structure.
Both companies are committed to collaboration on upcoming projects and licensing opportunities through their CirculAir™ initiative, leveraging their combined expertise to innovate and make a meaningful impact within the aviation sector.
Accounting Implications
LanzaTech’s interest in LanzaJet is accounted for using the equity method. This includes recognizing income and gain on dilution from equity method investments in the company’s consolidated statements. The investments are reflected on LanzaTech's consolidated balance sheet.
About LanzaTech
LanzaTech Global, Inc. (NASDAQ: LNZA) specializes in carbon management solutions that transform industrial emissions and waste into recycled carbon ethanol through proprietary bio-fermentation technology. Ethanol serves as a vital feedstock for Sustainable Aviation Fuel (SAF), marine fuels, and various chemical derivatives, thereby significantly lowering the carbon footprint of hard-to-abate sectors. Operating commercially at six sites, LanzaTech strives to build a circular carbon economy by driving sustainability in fuel supply chains.
For more information, visit www.lanzatech.com.