LanzaJet Raises $47 Million In New Funding

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LanzaJet recently secured $47 million in new capital through the first close of a targeted $135 million equity investment round. The round was co-led by International Airlines Group (IAG) and Shell.

LanzaJet, a Chicago-based sustainable fuels technology company, announced the first close of its equity investment round, securing approximately $34 million in equity alongside a $13 million grant from the UK Department for Transport’s Advanced Fuels Fund (AFF). This brings the immediate influx to $47 million, part of a larger $135 million target equity raise valued at $650 million pre money. The equity portion is classified as a Series B round in some analyses, building on prior investments to fuel expansion in SAF production.

The round is co-led by IAG, the parent of British Airways and other airlines, and energy giant Shell, both of whom are increasing their stakes to support LanzaJet’s growth. Participation from Groupe ADP (airport operator), LanzaTech (parent technology provider), and Mitsui (Japanese conglomerate) underscores a collaborative ecosystem spanning aviation, energy, and infrastructure. These investors highlight the strategic alignment with global decarbonization goals, as SAF can reduce lifecycle emissions by up to 80% compared to conventional jet fuel.

Proceeds will bolster operations at the Freedom Pines Fuels plant in Soperton, Georgia (the world’s first commercial scale ethanol-to-jet fuel facility) and fund future deployments, including the UK’s Project Speedbird biorefinery. This includes implementing a multi year tolling structure for low carbon feedstocks, ensuring supply chain stability and offtake agreements.While this funding strengthens LanzaJet’s position in the emerging SAF market, projected to grow significantly by 2030, challenges like feedstock availability and policy support remain. The investment signals optimism but emphasizes the need for continued innovation to meet aviation’s net-zero ambitions.

What is LanzaJet?

LanzaJet, established in 2020 as a spin-off from LanzaTech, specializes in Alcohol-to-Jet (ATJ) technology that converts sustainable ethanol sources (such as agricultural wastes, energy crops, and organic residues) into low carbon sustainable aviation fuel (SAF) and renewable diesel. This process addresses a critical gap in aviation decarbonization, where SAF represents one of the few scalable alternatives to fossil based jet fuel, potentially cutting greenhouse gas emissions by 80% on a lifecycle basis. The company’s latest funding round marks a significant milestone in its trajectory, reflecting both technological validation and investor commitment amid rising global demand for cleaner transportation fuels.

The funding comprises the first close of a $135 million equity target, valued at a $650 million pre-money enterprise level, co-led by International Airlines Group (IAG) and Shell. Additional contributions come from Groupe ADP, LanzaTech, and Mitsui, all of whom are existing stakeholders expanding their involvement. This equity infusion, approximately $34 million, is supplemented by a $13 million grant from the UK Department for Transport’s Advanced Fuels Fund (AFF), totaling $47 million in new capital. The grant specifically supports Project Speedbird, a planned SAF biorefinery in Teesside, UK, highlighting international policy backing for SAF initiatives.

This round builds on LanzaJet’s operational achievements, including the full commissioning of its Freedom Pines Fuels facility in Soperton, Georgia, in late 2025. As the first commercial scale plant to produce jet fuel from ethanol, it has a capacity of up to 10 million gallons annually of SAF and renewable diesel, with offtake agreements secured for the next decade. The facility employs a novel tolling model, utilizing U.S.-sourced low carbon ethanol and renewable natural gas to ensure feedstock security and production guarantees. This approach not only mitigates supply risks but also aligns with U.S. and EU regulatory frameworks promoting biofuels.

LanzaJet’s funding history demonstrates a pattern of strategic partnerships across energy, aviation, and finance sectors, amassing over $197 million across multiple rounds since inception. Early investments focused on technology development and initial commercialization, while recent ones emphasize scaling and global expansion. For instance, in 2020, founding investors LanzaTech, Suncor Energy, and Mitsui provided seed capital, with Mitsui contributing $10 million and Suncor $15 million to establish the company. This was followed by corporate investments from Shell and British Airways (via IAG) in 2021, and a substantial $100 million combined from Microsoft’s Climate Innovation Fund and Breakthrough Energy in 2022.

Subsequent rounds in 2024 included $30 million from Southwest Airlines in February, an undisclosed amount from Microsoft in April, $20 million from Groupe ADP in May, strategic investments from MUFG in June, and Airbus in July. These infusions supported key milestones, such as the Freedom Pines plant’s construction, which involved over $300 million in total investment. In 2025, a $13 million UK grant and non cash equity adjustments increased LanzaTech’s ownership to 53%, reinforcing technological synergies without additional capital outlay.

The following table summarizes LanzaJet’s known funding rounds, drawing from aggregated data across sources:

Note: Total raised estimates vary slightly between $177M (Tracxn) and $197M (CB Insights), with some rounds undisclosed or grant based. Discrepancies may arise from inclusion of grants or non cash equity.

LanzaJet’s investor roster, now totaling 16 entities, illustrates a diversified support network. Core backers include energy firms (Shell, Suncor), aviation players (IAG, Southwest, Airbus, ANA), financial institutions (MUFG, Microsoft), and infrastructure operators (Groupe ADP). This mix provides not just capital but also strategic offtake, supply chain, and regulatory advantages. For example, IAG’s involvement ensures demand from major airlines, while Shell’s expertise aids in fuel distribution.

The implications of this funding extend beyond LanzaJet to the broader SAF ecosystem. Aviation contributes about 2-3% of global CO2 emissions, and SAF is pivotal for achieving net-zero by 2050 under frameworks like the International Civil Aviation Organization’s goals. However, current SAF production meets less than 1% of jet fuel demand, constrained by high costs (2-8 times conventional fuel) and limited feedstocks. LanzaJet’s ATJ pathway leverages abundant ethanol, potentially lowering barriers, but requires policy incentives like U.S. Inflation Reduction Act credits or EU ReFuelEU mandates.

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Economically, the funding supports job creation and rural development, as seen with Freedom Pines’ impact in Georgia. Globally, projects in Japan (with Mitsui and Cosmo Oil), Australia (with Wagner Sustainable Fuels), and the UK position LanzaJet as a leader in international SAF supply chains. Challenges include competition from other pathways (e.g., HEFA from used cooking oil) and volatility in ethanol markets, but LanzaJet’s waste based focus enhances sustainability credentials.

Quotes from stakeholders emphasize optimism: CEO Jimmy Samartzis noted, “The decision by our existing investors to lead this fundraising round reaffirms their conviction in our technology and sends a strong signal to the entire industry.” This round not only validates LanzaJet’s progress but also accelerates the transition to a low carbon aviation future, with potential for further closes to reach the $135 million target.

The following table outlines key investors and their contributions across rounds:

This latest funding positions LanzaJet to capitalize on a burgeoning SAF market, projected to exceed $10 billion by 2030, while navigating complexities in supply, regulation, and economics. Continued success will hinge on executing global deployments and maintaining investor momentum.

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