LanzaJet has secured $47 million through the first close of a new equity financing round and a UK government grant, as the company moves to expand commercial deployment of its sustainable aviation fuel technology.

The equity round, which places LanzaJet at a pre-money enterprise valuation of $650 million, is co-led by International Airlines Group and Shell. The company is targeting a total of $135 million for the round.

Scaling Alcohol-to-Jet Technology

Founded in 2020 by carbon recycling company LanzaTech, LanzaJet has developed an Alcohol-to-Jet process that converts waste-based and sustainable ethanol into sustainable aviation fuel and renewable diesel. Feedstocks include low-carbon sugarcane, energy crops, forest residues, agricultural waste and other organic materials.

The funding will support expansion of its commercial footprint as aviation regulators tighten SAF blending mandates and airlines seek secure long-term supply.

In November 2025, the company confirmed full operations at its Freedom Pines Fuels facility in Soperton, Georgia. The site, developed with more than $300 million in investment, has the capacity to produce up to 10 million gallons annually of SAF and renewable diesel. Offtake agreements covering the next decade are already in place, providing revenue visibility as production scales.

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Securing Feedstock and Offtake

LanzaJet recently introduced a tolling structure at the Freedom Pines facility, incorporating domestically produced low-carbon ethanol and renewable natural gas sourced regionally. The structure is designed to secure consistent feedstock supply while guaranteeing offtake for all plant output.

This integrated approach reduces supply chain risk, a recurring challenge in SAF markets where feedstock availability and price volatility can constrain production.

UK Expansion Through Project Speedbird

Alongside the equity raise, LanzaJet announced it has received a grant from the UK Department for Transport’s Advanced Fuels Fund to advance Project Speedbird, a planned SAF biorefinery in Teesside.

The UK facility represents a significant step toward scaling production in Europe, where SAF mandates under regulatory frameworks such as ReFuelEU Aviation are expected to increase demand substantially over the coming decade.

Explore OneStop ESG Marketplace: Sustainable fuels

Strategic Backing from Aviation and Energy Leaders

In addition to IAG and Shell, the financing round includes participation from Groupe ADP, LanzaTech and Mitsui, all of which have previously invested in the company. The involvement of major airline and energy players signals industry alignment behind commercial-scale SAF deployment.

As aviation faces intensifying decarbonisation pressure, scalable production pathways such as Alcohol-to-Jet are gaining investor attention. LanzaJet’s expansion plans reflect a broader effort to move SAF from demonstration volumes toward sustained industrial output, supported by long-term supply agreements and strategic capital partnerships.

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