LanzaTech to prioritise projects in EU and UK; slash workforce by 10-15%
Carbon management solutions company LanzaTech said it will focus on growth priorities of the company’s core biorefining operations, including the technology’s inclusion in integrated waste-based ethanol to sustainable aviation fuel and cut workforce to reduce operating expenses.
“Over the last two decades, LanzaTech has been at the forefront of carbon management innovation, pushing the boundaries to establish new products and markets,” said Dr. Jennifer Holmgren, Chair and CEO of LanzaTech.
“As we shift the company’s focus from research and development to globally deploying our proven technology, we are pursuing partnership opportunities for technologies that are ready to stand on their own and sharpening our focus on high-impact commercial projects that align more with a path to profitability.”
The company said the high-priority commercial projects includes one project in the United Kingdom and another in the European Union, each of which will have the capacity to produce 30m gallon per year.
These waste-based ethanol-to-SAF facilities will leverage LanzaTech and LanzaJet solution to deliver economically compelling offering for the aviation industry with a platform to produce waste-based SAF globally.
Additionally, the company also announces plans to implement strategic measures to scale its business globally with greater cost efficiency.
This includes evaluating its global footprint, with anticipated consolidations expected to reduce the workforce by approximately 10 to 15%.
These measures, combined with the LanzaX and LNP strategic opportunities, and other cost savings plans, have the potential to result in approximately $30m of annual cash operating expense reductions.
The company will release its fourth quarter and full-year 2024 earnings results on Monday, March 31, 2025.
To note, the LanzaTech reported revenue of $9.9m in the third quarter of 2024 with a net loss of $57.4m.
At the end of third quarter of 2024 in September 30th, the company’s operating expenses reached $34.8m compared to $27.1m at the end of 2023 whereas the company’s revenues have declined by to $9.9m – an absolute decrease of $10.6m during the last nine months.