Announces Intent to Create a Growth-Driven Joint Venture for LanzaX, the Company's Differentiated Synthetic Biology Platform, with Tharsis Capital Joining as a New Strategic Partner for LanzaX to Accelerate Funding for Synbio's Development Pipeline
Appointed a new interim CFO for LanzaTech to streamline the biorefining platform's growth priorities and increase focus on cost reduction
CHICAGO, Jan. 21, 2025 (GLOBE NEWSWIRE) — LanzaTech Global, Inc. today announced… (NASDAQ: LNZA) (LanzaTech or the Company), a carbon recycling company that converts carbon waste into sustainable fuels, chemicals, materials and protein. Its intention is to form LanzaX, a business unit dedicated to its wholly-owned synthetic biology platform. LanzaTech intends to spin off 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 Mr. Justin Pugh as interim CFO of LanzaTech, who will succeed Mr. Jeff Trockenbrode, effective immediately.
LanzaTech strategic joint venture and launch of LanzaX Spin-Out
The formation and proposed separation of LanzaX, which consists of the Company's synthetic biology and strain engineering (synbio) platform and associated personnel, is a strategic move intended to accelerate project development, while enabling greater focus on growth priorities for the Company's core biorefinery operations, including Sustainable aviation fuel (SAF).
In connection with the formation of LanzaX, LanzaTech has entered into an agreement with Tharsis Capital, a New York-based advisory and impact venture capital firm focused on sustainability, including a specialty related to bioenergy, biomaterials and chemicals, to assist the company with the proposed offering of LanzaX and to assist in exploring potential investment opportunities for this business unit.
This strategic offering will enable LanzaX to better access the capital needed to accelerate the development of its robust pipeline of existing projects, including initiatives related to acetone, isopropanol and high-value specialty products, with clients that include global corporations, leading brands and universities. LanzaTech will contribute a number of existing Synbio contracts and a portfolio of over 100 molecules on offer to LanzaX, which in turn will leverage LanzaTech's proven commercial experience in scaling up ethanol production to rapidly scale new molecules. By its very nature, the production of new molecules using biology will also make it possible to leverage existing commercial operating facilities, further accelerating the path to scaling up these new chemicals.
In addition to enhancing LanzaTech's gas fermentation capabilities through the introduction of LanzaX, the company expects to reduce its cost structure by approximately $8 million annually, primarily related to the transition of more than 30 full-time employees to LanzaX. With the offering expected to be completed during 2025, LanzaTech expects to realize a portion of this benefit during 2025, with the full run rate benefit being realized during 2026 and beyond.
Today's announcement reflects a strategic step in the continued evolution of LanzaTech, said Dr. Jennifer Holmgren, Chairman and CEO. We are delighted to welcome Tharsis Capital as our newest strategic partner, recognizing their strong belief in our vision and ambitions for the Synbio space. We expect this collaboration to amplify our progress by leveraging shared goals and resources to advance 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 paves the way for a transformative biomanufacturing platform that will leverage dedicated resources in order to accelerate the development of the existing portfolio of semi-commercial molecules in biochemistry, biomaterials and a wide range of chemical disciplines,” said Henry 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 pad that we believe will set a new standard for sustainable chemicals. We are pleased to join forces with LanzaTech in making LanzaX a global leader in biochemistry.
LanzaTech appoints interim CFO
Alongside the LanzaX offering, LanzaTech has also appointed Mr. Justin Pugh as its new interim CFO. Mr. Pugh's initial priorities will focus on implementing strategic cost reductions and reallocating resources to effectively harness the significant and growing momentum of ethanol as a critical feedstock for SAF production.
With extensive skills in general corporate finance, strategy, accounting, treasury and risk management, Mr. Pugh has more than 15 years of experience providing strategic, operational and financial solutions to organizations and their relevant stakeholders. He served as interim CFO and was part of a CFO transition team for three separate renewable energy companies. Most recently, Justin worked with 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 Illinois, and a Certified 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 improvement of our strategy as we increase our focus on right sizing our cost structure, deploying our commercial technology globally, and ultimately accelerating our path to profitable operations with a sharper focus. We look forward to To work together as we execute our long-term growth strategy and build a strong financial foundation to support the significant growth that lies ahead.
Dr. Holmgren concluded: I would like to deeply thank Jeff for his invaluable service over the past four years and wish him much success in his future endeavors.
LanzaTech has begun a search for a permanent CFO for the company.
About Lanza Tech
LanzaTech Global, Inc. (NASDAQ: LNZA) is a carbon recycling company that converts carbon waste into sustainable fuels, chemicals, materials and protein for everyday products. Using its proprietary bio-recycling technology, LanzaTech captures carbon generated by energy-intensive industries at the source, preventing it from being emitted into the air. LanzaTech then gives the captured carbon a new life as a clean alternative to virgin fossil carbon in everything from household detergents and clothing fibers to packaging and fuel. 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 greenfield and sustainable investments. Since its inception in 2014, Tharsis Capital has helped raise nearly $500 million. Henry Arif is founder and managing partner of Tharsis Capital and has advised on high-profile transactions in biomaterials companies. Henry's experience sourcing, executing, and mentoring innovative companies has made him a trusted partner to institutional investors, family offices, and management teams in the biomaterials industry.
Forward-looking statements
This press release contains forward-looking statements relating to, among other things, the plans, strategies and prospects, both business and financial, of LanzaTech. These statements are based on the beliefs, assumptions, expectations 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 outcomes or results to differ materially from those discussed in the forward-looking statements. LanzaTech cannot assure you that it will achieve or achieve these plans, intentions or expectations. Forward-looking statements are not guarantees of future performance, conditions or results, and you should not place undue reliance on forward-looking statements.
In general, statements that are not historical facts, including those regarding possible or hypothesized future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded or followed by or include the words believes, estimates, expects, projects, forecasts, may, will, should, seeks, plans, plans, expects, intends or similar expressions. Important factors that could cause our actual results and financial condition to differ materially from those indicated in forward-looking statements include, among others, the following: the timing of delays in projects progressing to the final investment decision stage or into the construction stage; failure of customers to adopt new technologies and platforms; fluctuations in the availability and cost of raw materials and other process inputs; Availability and continuity of government funding and support; broader economic conditions, including inflation, interest rates, supply chain disruptions, business conditions, and competitive pressures; unexpected technical, regulatory or business challenges in scaling proprietary technologies or business functions or operational disruptions; and other economic, business or competitive factors, and other risks and uncertainties, including risk factors and other information contained in LanzaTech's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q, as well as other factors Current Filings and futures filings with the US Securities and Exchange Commission.
Any forward-looking statement herein is based only 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.
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