Novo Holdings Invests $72 Million in Sustainable Products Leader LanzaTech

(Lanza Tech) Novo Holdings A/S (Novo Holdings) and LanzaTech, a pioneer in the production of next generation fuels and chemicals through the recycling of carbon pollution, announce today that they have formed a partnership to grow LanzaTech’s revolutionary sustainable fuels and chemicals platform. Novo Holdings is making a $72 million investment in the company in a Series E financing, and Senior Director Anders Bendsen Spohr will join LanzaTech’s Board of Directors.

The transaction underlines Novo Holdings’ increasing focus on investing in market-leading bio-industrial companies with the ability to have a long-term sustainable impact on society through innovative technologies. Additionally, the investment in LanzaTech marks Novo Holdings’ fourth investment within the growth equity area this year. Growth equity investments enable Novo Holdings to support companies at the forefront of transformative technologies, fueling transitions that will take companies to the next level of development.

LanzaTech’s platform takes pollution and recycles it, eliminating single-use carbon. Examples of the uses of the technology include taking steel mill emissions in China and unsorted, unrecyclable household waste in Japan and converting these wastes to ethanol, sustainable aviation fuel or polyethylene for consumer goods. When a product has reached the end of its useful life, it can go unsorted and uncleaned to a LanzaTech facility and be recycled repeatedly without losing any of the properties of the original material. This locks carbon into a cycle and supports a transition to a circular economy.

Novo Holdings’ investment will expand LanzaTech’s carbon recycling platform and enable LanzaTech to accelerate the commercialization of Carbon Smart™ products allowing consumers to choose where the carbon in their products comes from, recycled carbon or fossil carbon.

Anders Bendsen Spohr, Senior Director at Novo Holdings, says: “LanzaTech is addressing our collective need for sustainable fuels and materials, enabling industrial players to be part of building a truly circular economy. Novo Holdings’ investment underlines our commitment to supporting the bio-industrials sector and, in particular, companies that are developing cutting-edge technology platforms. We are excited to work with the LanzaTech team and look forward to supporting the company in its next phase of growth.”

Jennifer Holmgren, Chief Executive Officer of LanzaTech, commented:
“We are delighted with the investment from Novo Holdings, a visionary company and team focused on creating long-term value while making a positive impact. This comes at a critical time for the health of our planet. We no longer need to debate whether climate change is real. We need to mobilize all sustainable solutions to create a future free of carbon pollution. Novo Holdings’ investment and experience in the industrial biotechnology space, will allow LanzaTech to continue to create a Carbon Smart world, with clean blue skies and blue oceans for all.” READ MORE

This funding will enable us to expand the company in a number of ways, including:

Novo Holdings (www.novoholdings.dk) is the holding company of the Novo Group, comprising Novo Nordisk A/S and Novozymes A/S, and is responsible for managing the Foundation’s assets. Novo Holdings makes seed, venture and growth equity investments with the goal to be recognized as a world-leading life science investor helping their companies create long-term value.

This funding will help us grow the company at a time when we need all available solutions to help us combat our climate challenges. From arctic wildfires and heatwaves across Europe to the Tour de France being shortened due to extreme weather, this summer has seen climate change take an increasingly dominant part in the news cycle.

LanzaTech has demonstrated we can convert carbon pollution whether from industrial, urban or agricultural waste into useful products, making single use carbon a thing of the past and showing the world that we can turn the growing carbon liability into an opportunity that will grow the economy, create jobs and keep the skies and oceans clean and blue for all! Indeed, the funding from Novo will help us accelerate commercialization and ensure that we leave no carbon behind, showing the world that we can go beyond ethanol and that there are technologies available today that enable a circular economy that can displace fossils in fuels and chemicals production.

We have long spoken of the need to be Carbon Smart, and this investment and backing from Novo Holdings will help us realize this vision. Consumers can now be given the choice of what sort of carbon footprint they are leaving on the planet by choosing where the carbon in their products comes from, much like choosing recycled paper or Fairtrade coffee.

LanzaTech has one commercial site operating in China, producing ethanol, compressed natural gas from the waste water treatment plant at site and protein rich-biomass waste that can be used as a nutritional animal feed. This first commercial plant has compelling project economics with production levels that enable profitability and a payback period of ~3-5 years.

Four (4) more commercial sites are in development and construction globally, using a variety of waste feedstocks. Following last year’s flight with Virgin Atlantic, a second flight using LanzaTech’s sustainable aviation fuel derived from waste steel mill emissions is due to take place this autumn with All Nippon Airways. The National Research Council (NRC) Canada undertook test flights using LanzaTech jet fuel which showed the sustainable aviation fuel reduced contrails, particulate number and emissions compared to fossil jet.

• Carbon Recycling technology with compelling economics (payback in 3-5 year for commercial facility)
• Wide range of waste carbon as feedstock increases reach globally
• Diverse product portfolio, including jet fuel and chemicals that can’t be replaced by renewable electricity!
• Enables Circular Economy by locking carbon into new consumer goods
• Jet fuel produced by LanzaTech shows significant carbon reductions (70%) compared to fossil jet and shows reduced pollutants, particulates and contrail formations (fewer soot filled white lines from flights that use LanzaTech’s jet fuel!)
• Gives consumers choice as to where the carbon in their products comes from
• Innovative Industrial biotech to solve carbon and climate crisis. READ MORE