HOUSTON - Technip (EPA:FTI) Energies (PARIS:TE) and LanzaTech Global, Inc. (NASDAQ:LNZA) have received a commitment of up to $200 million in federal funding from the U.S. Department of Energy’s Office of Clean Energy Demonstrations (OCED) for their Project SECURE, which aims to decarbonize ethylene production. This initial award of nearly $20 million will fund the first phase of the project, focusing on the engineering design work necessary to progress the development of sustainable ethanol and ethylene from carbon dioxide utilization with renewable energy.
Project SECURE is set to be deployed first in the U.S. Gulf Coast region, integrating directly into an existing commercial ethylene cracker. Technip Energies, which has a significant presence in the global ethylene market, is leading the project in partnership with LanzaTech, known for its carbon recycling technology.
During the initial phase, both companies will conduct a Front-End Engineering Design (FEED) study, develop project plans, and engage with local community and labor stakeholders. The project has the potential to be replicated across the 370 ethylene steam crackers worldwide, over 40 percent of which use Technip Energies' technology.
The CEOs of both companies expressed their commitment to decarbonizing ethylene production, a critical component for many consumer goods. The project aligns with OCED’s mission to accelerate the transition to a decarbonized energy system through partnerships with the private sector.
Technip Energies, a global engineering firm with revenues of €6 billion in 2023, and LanzaTech, a carbon recycling company, are set to develop this technology at scale, with the potential to impact various industries by converting carbon-rich emissions into valuable ethanol.
This news is based on a press release statement and does not include any speculative insights or broader industry impacts. The information presented is factual, highlighting the partnership's efforts to innovate in the field of sustainable energy and chemical production. While LanzaTech operates with a moderate level of debt and maintains liquid assets exceeding short-term obligations, InvestingPro subscribers can access comprehensive financial health scores and detailed analysis of the company's growth potential.
In other recent news, LanzaTech Global made significant changes to its finance leadership amid growth. Sushmita Koyanagi has been appointed as the new Chief Accounting Officer, and George Dimitrov has transitioned to the role of Senior Vice President, Finance and Business Operations for LanzaTech Nutritional Protein (LNP), a new venture. LanzaTech also reported third-quarter revenue that missed expectations but guided for improved fourth-quarter earnings. TD Cowen adjusted its outlook on LanzaTech, reducing the price target while maintaining a Hold rating.
The company finalized the termination of its Forward Purchase Agreement with ACM, settling the agreement with a cash payment. LanzaTech was also awarded a $3 million grant by the U.S. Department of Energy for its Project ADAPT, which aims to convert carbon dioxide into sustainable isopropanol. The company clarified its aim to secure a maximum of $150 million in financing, which includes $40.15 million already secured from an accredited investor.
In addition, LanzaTech expanded its authorized common stock from 400 million to 600 million shares. Roth/MKM maintained a Buy rating for LanzaTech, highlighting the company's expansion into nutritional protein production. However, TD Cowen assigned a Hold rating due to expected deployment challenges. These are some of the recent developments for the industrial chemicals company.
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