Announces its intention to spin off and form a growth-oriented joint venture for LanzaX, the company’s differentiated synthetic biology platform, with Tharsis Capital joining as LanzaX’s new strategic partner to accelerate financing for the development of synbio.
Appoints new interim LanzaTech CFO to optimize biorefining platform growth priorities and increase focus on cost reduction.
CHICAGO, Jan. 21, 2025 (GLOBE NEWSWIRE) — LanzaTech Global, Inc. (NASDAQ: LNZA) (LanzaTech or the Company), the carbon recycling company that transforms waste carbon into fuels, chemicals, materials and proteins sustainable, today announced its intention to form LanzaX, a business unit dedicated to its wholly owned synthetic biology platform. LanzaTech intends to separate LanzaX from its core biorefining business as a joint venture with Tharsis Capital LLC (Tharsis Capital) in the coming months. The Company also announced the appointment of Justin Pugh as interim CFO of LanzaTech, who will succeed Geoff Trukenbrod, effective immediately.
LanzaTech Strategic Joint Venture and Launch of LanzaX Spin-Out
The formation and proposed spin-off of LanzaX, which is comprised of the company’s proprietary synthetic biology and strain engineering (synbio) platform and associated employees, is a strategic move that aims to accelerate the development of the project, while allowing for sharper focus on growth priorities. of the Company’s main biorefining operations, including its Sustainable Aviation Fuels (SAF) projects.
In connection with the formation of LanzaX, LanzaTech has entered into an agreement with Tharsis Capital, a New York-based impact venture capital and advisory firm focused on sustainability, including a specialization related to bioenergy, biomaterials and products. chemicals, to assist the Company in the proposed spin-off of LanzaX and help explore possible investment opportunities for this business unit.
The strategic spin-off will allow LanzaX to better access the capital needed to accelerate the development of its strong pipeline of existing projects, including initiatives with acetone, isopropanol and high-value specialty products, with customers spanning global firms, leading brands and universities. LanzaTech will contribute a number of existing biosynthesis contracts and a portfolio of more than 100 demonstrated molecules to LanzaX, which in turn will leverage LanzaTech’s proven commercial expertise in scaling up ethanol production to scale new molecules rapidly. By its very nature, the production of new molecules using biology will also enable the utilization of existing commercially operational facilities, further accelerating the path to scale of these new chemicals.
In addition to increasing LanzaTech’s gas fermentation capabilities with the LanzaX spin-off, the company expects to reduce its cost structure by approximately $8 million annually, primarily related to the transfer of more than 30 full-time employees to LanzaX. With the spin-off expected to be completed during 2025, LanzaTech expects to realize a portion of this benefit during 2025, with the full run-rate benefit to be realized during 2026 and beyond.
Today’s announcement reflects a strategic step in LanzaTech’s continued evolution, said Dr. Jennifer Holmgren, president and CEO. We are delighted to welcome Tharsis Capital as our newest strategic partner, recognizing their strong belief in our vision and ambitions within the synbio landscape. We hope this collaboration will amplify our progress by leveraging shared goals and resources to foster significant advances in sustainable chemical production. By directing new capital and expertise to our synbio division, we are not only driving its growth but also strengthening the financial and operational foundation of our core biorefining operations.
The creation of LanzaX lays the foundation for a transformative biomanufacturing platform that will leverage dedicated resources to accelerate the development of an existing portfolio of near-commercial molecules into biochemicals, biomaterials and a broad range of specialty chemicals, said Henri Arif, Managing Partner of Tharsis. Capital. The global footprint of gas fermentation assets deployed by LanzaTech at full commercial scale, combined with its world-leading team of synthetic biology experts joining LanzaX, will create a commercial launch platform that we believe will set a new benchmark in sustainable chemicals. We are delighted to join forces with LanzaTech to make LanzaX a global leader in biochemistry.
LanzaTech appoints interim CFO
In addition to the LanzaX spinoff, LanzaTech also named Justin Pugh as its new interim CFO. Mr. Pugh’s initial priorities will focus on implementing strategic cost reductions and reallocating resources to effectively leverage the significant and growing momentum for ethanol as a critical feedstock for SAF production.
With extensive skills in public company finance, strategy, accounting, treasury and risk management, Mr. Pugh has over 15 years of experience providing strategic, operational and financial solutions to companies and their related stakeholders. He has served as interim CFO and been part of a CFO transition team for three different renewable energy companies. Most recently, Justin worked on the Energy, Renewables and Energy Transition team at FTI Capital Advisors. Mr. Pugh holds a Chartered Financial Analyst (CFA) designation, a Certified Public Accountant (CPA) designation in the state of Illinois, and the Accredited Business Valuation (ABV) designation from the American Institute of Certified Public Accountants (AICPA). .
Dr. Holmgren added: We believe Justin will play a key role in supporting the execution and refinement of our strategy as we focus on right-sizing our cost structure, implementing our globally commercialized technology, and, ultimately accelerating our path to profitable operations with sharper focus. We look forward to working together as we execute our long-term growth strategy and build a strong financial foundation to support the significant growth ahead.
Dr. Holmgren concluded: I would like to sincerely thank Geoff for his valuable service over the past four years and wish him every success in his future endeavors.
LanzaTech has begun the search for a permanent CFO of the Company.
About LanzaTech
LanzaTech Global, Inc. (NASDAQ: LNZA) is the carbon recycling company that transforms waste carbon into sustainable fuels, chemicals, materials and proteins for everyday products. Using its biorecycling technology, LanzaTech captures the carbon generated by energy-intensive industries at the source, preventing it from being emitted into the air. LanzaTech then gives new life to captured carbon as a clean replacement for virgin fossil carbon in everything from household cleaning products and clothing fibers to packaging and fuels. By partnering with companies across the global supply chain such as ArcelorMittal (NYSE:), Coty (NYSE:), Craghoppers, REI and LanzaJet, LanzaTech is paving the way for a circular carbon economy. For more information about LanzaTech, visit https://lanzatech.com.
About Tharsis Capital
Tharsis Capital LLC is a venture capital and advisory firm specializing in sustainable and impact-driven investments. Since its inception in 2014, Tharsis Capital has helped raise a total of nearly $500 million. Henri Arif, founder and managing partner of Tharsis Capital, has advised on notable transactions in biomaterials companies. Henri’s experience in sourcing, executing and guiding innovative businesses has made him a trusted partner for institutional investors, family offices and management teams within the biomaterials industry.
Forward-looking statements
This press release includes forward-looking statements regarding, among other things, LanzaTech’s business and financial plans, strategies and prospects. These statements are based on the beliefs, assumptions, projections and conclusions of LanzaTech’s management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions, many of which are beyond LanzaTech’s control, which could cause actual results to differ materially from those discussed in the forward-looking statements. LanzaTech cannot guarantee that you will achieve or realize these plans, intentions or expectations. Forward-looking statements are not guarantees of future performance, conditions or results, and you should not rely on forward-looking statements.
Generally, statements that are not historical facts, including those regarding possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded, followed or include the words believes, estimates, expects, projects, forecasts, may, should, seeks, plans, programs, anticipates, intends or similar expressions. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, but are not limited to, the following: delays in the advancement of projects to the final investment decision stage or into construction ; lack of customer adoption of new technologies and platforms; fluctuations in the availability and cost of raw materials and other process inputs; the availability and continuity of government funding and support; broader economic conditions, including inflation, interest rates, supply chain disruptions, employment conditions and competitive pressures; unforeseen technical, regulatory or business challenges in expanding proprietary technologies, business functions or operational disruptions; and other economic, business or competitive factors, and other risks and uncertainties, including the risk factors and other information contained in LanzaTech’s most recent Annual Report on Form 10-K and any subsequent Quarterly Report on Form 10-Q, as well as other existing and future filings with the U.S. Securities and Exchange Commission.
Any forward-looking statement contained herein is based solely on information currently available to LanzaTech and speaks only as of the date on which it is made. LanzaTech undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
LanzaTech Global, Inc.
Investor Relations
Kate Walsh
Vice President of Investor Relations and Taxes
Investor.Relations@lanzatech.com
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Communications Director
press@lanzatech.com
Source: LanzaTech Inc.