LanzaTech updates agreement with LanzaJet to boost SAF development

SKOKIE, Ill. - LanzaTech Global, Inc. (NASDAQ:LNZA), a carbon recycling company with a market capitalization of $58 million and maintaining a stronger cash position than debt on its balance sheet according to InvestingPro, announced Thursday that investors in its affiliate LanzaJet, Inc. have revised their investment and stockholders' agreements to strengthen their collaboration on sustainable aviation fuel (SAF) development.

Under the amended agreement, LanzaTech will receive two tranches of shares in LanzaJet upon meeting development milestones at the Freedom Pines facility in Georgia. If LanzaJet is sold or goes public before these tranches are received, LanzaTech's ownership stake will automatically increase to 50% without requiring additional investment. The deal comes as LanzaTech faces significant challenges, with InvestingPro data showing a 40% revenue decline in the last twelve months and rapid cash burn.

The companies also modified their 2020 Intellectual Property and Technology License Agreement, extending it through December 31, 2031. The updated terms remove LanzaTech's right to terminate the agreement and require the company to transfer the license directly to LanzaJet. Additionally, restrictions on licensing LanzaJet's technology to third-party sublicensees have been eliminated.

"This amendment reinforces LanzaTech's foundational role as both the technology provider and a strategic shareholder pivotal to LanzaJet's growth towards full commercial operations," said Jennifer Holmgren, CEO of LanzaTech.

The partnership aims to scale SAF production by integrating LanzaTech's carbon-recycling initiatives that provide waste-based ethanol feedstock for LanzaJet's alcohol-to-jet (AtJ) pathway.

LanzaTech, which transforms industrial emissions, gasified solid waste, and carbon dioxide into recycled carbon ethanol through bio-fermentation technology, currently operates commercially at six assets. The company's ethanol serves as a key feedstock for sustainable aviation fuel and other fuel products.

This information is based on a press release statement from LanzaTech. According to InvestingPro's Fair Value analysis, LanzaTech appears undervalued at current levels, despite its operational challenges. Investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro's detailed research reports, available for over 1,400 US stocks including LNZA.

In other recent news, LanzaTech Global, Inc. has made significant amendments to its agreements with partners in LanzaJet, Inc. The company executed a series of revised agreements with British Airways PLC, Mitsui & Co., Ltd., Shell Ventures LLC, and Suncor Energy Inc., modifying share issuance terms related to their sustainable aviation fuel project in Georgia. Furthermore, LanzaTech amended its Series A Convertible Senior Preferred Stock Purchase Agreement, extending the financing deadline to October 15, 2025, with provisions for multiple closings. In a strategic move to maintain its Nasdaq listing, LanzaTech announced a 1-for-100 reverse stock split, effective August 18, 2025. This action aims to meet Nasdaq's minimum bid price requirement, with post-split trading commencing on August 19, 2025. Additionally, at its 2025 Annual Meeting of Stockholders, LanzaTech's stockholders approved nine out of ten proposals, including electing new directors and ratifying Deloitte & Touche LLP as the independent auditor for the fiscal year ending December 31, 2025. These developments reflect LanzaTech's ongoing efforts to strengthen its financial and operational framework.

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