I hope this note finds you well.
This update comes as I reflect on all LanzaTech has accomplished in the first half of the
year. I want to take a little time to highlight two of the growth areas I am particularly
excited about, given the significant progress we continue to make and the increasing
demand pull we’re experiencing from our target markets.
Earlier this month, all eyes were on Paris and the inspiration ushered in by the
Olympics. I was fortunate to be a guest of our partner ArcelorMittal at this year’s
games; ArcelorMittal created the Olympic torch with their groundbreaking low-carbon
steel. As ArcelorMittal ramps production of ethanol from the LanzaTech bioreactors at
their steel plant in Gent, Belgium, the significant revenue stream associated with
managing a portion of the offtake volumes from this facility will also ramp. The valuable
ethanol volumes will be sold into multiple channels and will not only be an important
source of supply for our CarbonSmart customers, but will also be a driver of revenue
growth for us during the fourth quarter of this year and beyond.
And, speaking of CarbonSmart, while I was at the Olympics, I was able to celebrate
what’s possible in sustainable materials. Our incredible textile partner Far Eastern New
Century (FENC) teamed up with fabric producer New Wide and label producer Jumway
to create something truly groundbreaking: the Chinese Taipei Olympic team uniforms
made from recycled steel mill emissions. Paris 2024 positioned itself at the cutting edge
of sportswear innovation, and we are incredibly proud to grow our CarbonSmart
footprint alongside the rising demand for sustainable clothing.
The second area of growth for LanzaTech that I would like to highlight is related to the
important announcement that we made on August 19. In partnership with LanzaJet, we
announced a landmark project with Wagner Sustainable Fuels to equip their Brisbane
SAF refinery with our CirculAir technology. This is the first CirculAir project we have
announced since launching our joint platform in June, and 3Q24 will mark our first
quarter for reporting CirculAir revenues. We co-created our CirculAir platform with
LanzaJet to provide a powerful technology solution that has the capability to convert
locally available waste streams into SAF, and we expect the global adoption of our
solution to be a key pathway to decarbonize the aviation industry by 2050. With this
project, Wagner Sustainable Fuels is positioning Australia as a leader in SAF production
and, in tandem, bolstering local jobs, supporting domestic energy security, and
protecting our precious environment. Together, with Wagner and Boeing (press releases
enclosed), we are breaking down barriers to SAF adoption, and driving economies of
scale, reducing costs, and accelerating the transition to a more sustainable aviation
industry globally.
In a recent poll of 4,000 people across the US, UK, France, and Germany, 65% of
consumers said that it is time for air travel to become sustainable, and ambitious targets
have been set to scale SAF production and meet this mounting demand. For 2030, the
target for global SAF production is 6 billion gallons, which is a massive increase from the
~160 million gallons that were produced in 2023. With our CirculAir platform, we are
positioned to capture an incredible amount of this growth, and our team is focused on
doing just that.
Best regards,
Jennifer
