US-based sustainable chemicals and fuel producer LanzaTech has spun off the aviation-focused LanzaJet with $50m from investors including corporates Suncor Energy, Mitsui and All Nippon Airways (ANA), Chicago Inno reported on Wednesday.
Oil and gas producer Suncor provided $15m, while diversified conglomerate Mitsui injected $10m, LanzaTech said in a statement, adding that it has received a $14m grant from the US Department of Energy, suggesting airline operator ANA supplied $11m.
LanzaJet has developed a process that can turn any source of sustainable ethanol into airplane fuel, including ethanol generated from recycled pollution – the core application of LanzaTech’s carbon recycling technology.
LanzaTech developed its alcohol-to-jet technology in partnership with the US Department of Energy’s Pacific Northwest National Laboratory.
The sustainable fuel is intended to support the aviation industry in becoming more climate friendly when flights resume after Covid-19 lockdowns. Production is expected to start in early 2022 and the funding will go to building an integrated biorefinery in the US state of Georgia.
Suncor has agreed to purchase a significant portion of LanzaJet’s sustainable aviation fuel and renewable diesel in addition to its investment, and both Suncor and Mitsui plan to invest in the construction of commercial production facilities once its pilot plant reaches all demonstration milestones.
Mark Little, Suncor’s president and chief executive, said: “We believe this technology will provide a solid foundation for the commercial production of sustainable aviation fuel and renewable diesel.
“These products are very complementary to our existing product mix and we see growth potential in both North American and international markets.
“Suncor is committed to both a low carbon future for our own business and to helping our customers, including in the space of commercial aviation, realise their own vision of a sustainable future.”
