LanzaTech secures €40 million EU grant for carbon recycling project

SKOKIE, Ill. - LanzaTech Global, Inc. (NASDAQ:LNZA) has been awarded a €40 million grant from the European Union's Innovation Fund for a carbon recycling project in Norway, subject to finalizing the grant agreement, the company announced Wednesday. According to InvestingPro data, LanzaTech currently holds more cash than debt on its balance sheet, though the company has been quickly burning through cash with negative free cash flow of $91.86 million in the last twelve months.

The project will deploy LanzaTech's second-generation bioreactor at Eramet Norway's manganese smelter in Porsgrunn to convert greenhouse gases from smelter furnaces into approximately 23,500 metric tons (about 8 million U.S. gallons) of ethanol annually.

If fully implemented with carbon capture and storage components, the project aims to achieve up to 97% reduction in emissions, potentially avoiding 1.7 million tons of CO2 equivalent annually. The process will also produce concentrated CO2 that will be purified, liquefied and transported for permanent geological storage in the North Sea.

"The strength of our application underscores our commitment to innovation and robust technology," said Jennifer Holmgren, CEO of LanzaTech, in the press release statement.

The project links carbon capture and utilization with carbon capture and storage technologies to serve the chemicals and aviation sectors. Ethanol produced through this process can be used as a feedstock for sustainable aviation fuel and other chemical derivatives.

Enova SF, a Norwegian government enterprise focused on environmental protection, has provided support for the project. Nils Kristian Nakstad, CEO of Enova, noted that "the success of Norwegian projects shows that we have companies who dare to take risks and can deliver world-class solutions."

The EU grant will focus on demonstrating and optimizing the technology under real-world industrial conditions, potentially serving as a model for similar applications across other sectors and regions.

LanzaTech currently operates commercially at six assets globally, using its bio-fermentation technology to transform industrial emissions and other carbon sources into recycled carbon ethanol. Despite recent stock price volatility and a significant decline of 89.9% over the past year, InvestingPro analysis indicates the company appears undervalued based on its Fair Value assessment. Investors seeking deeper insights can access the comprehensive Pro Research Report, available for LanzaTech and 1,400+ other US equities, providing clear, actionable intelligence through intuitive visuals and expert analysis.

In other recent news, LanzaTech Global, Inc. announced updates to its agreements with its affiliate, LanzaJet, Inc., aimed at advancing the development of sustainable aviation fuel (SAF). The revised agreements include the issuance of shares to LanzaTech upon reaching certain milestones at the Freedom Pines facility in Georgia. If LanzaJet is sold or goes public before these milestones are met, LanzaTech's ownership stake will automatically increase to 50%. Additionally, LanzaTech has amended its Series A Convertible Senior Preferred Stock Purchase Agreement, extending the deadline for completing a common stock financing of $35 million to $60 million until October 15, 2025. This amendment permits multiple closings of such financings. Furthermore, LanzaTech has announced a 1-for-100 reverse stock split to maintain its Nasdaq listing, effective August 18, 2025. The stock will trade on a post-split basis beginning August 19, 2025. These developments reflect ongoing efforts to strengthen the company's financial and operational strategies.

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