I’ve been covering LanzaTech’s story for (I think) almost a decade now and it is great to hear that LanzaTech’s carbon capture technology (CCT) is already being commercialised successfully in large-scale capacities. In order to proceed with several other projects in their portfolio and a burgeoning sustainable aviation fuels (SAF) company called LanzaJet, which was spun out in 2020, LanzaTech recently announced its planned initial public offering (IPO) via a merger with special purpose acquisition company (SPAC) AMCI Acquisition Corp. II.
The IPO is expected to raise gross proceeds of approximately $275 million, comprised of AMCI’s $150 million of cash held in trust (assuming no redemptions by AMCI’s public stockholders) and a committed common equity PIPE of approximately $125 million, at $10.00 per share, by investors AMCI, ArcelorMittal, BASF, K1W1, Khosla Ventures, Mitsui & Co., LTD., New Zealand Superannuation Fund, Oxy Low Carbon Ventures LLC, Primetals Technologies, SHV Energy and Trafigura.
The transaction implies a combined pro forma enterprise value of approximately $1.8 billion and a pro forma equity value of approximately $2.2 billion and is expected to close in the third quarter of 2022. Upon closing of the transaction, the combined company will be renamed LanzaTech Global, Inc. and its common stock is expected to be listed on Nasdaq under the ticker symbol “LNZA.”
LanzaTech is expected to be the first CCT company to access the public capital markets. The company says its extensive network of customers and partners have committed approximately $800 million in the development of new facilities using LanzaTech’s technology, including two commercially operating plants and seven plants under construction.
Here are some of the interesting downstream LanzaTech partnerships that I’ve been tracking recently:
LanzaTech Downstream Partnerships Partners Products BASF N-Octanol Coty Ethanol (fragrances) India Glycols/FENC EO/MEG Lululemon/InEnTec PET fibre PNNL N-Butene Migros/Mibelle Group Ethanol (cleaning products) On/Borealis EVA foam Sumitomo Chemical Ethylene Total/L'Oreal Polyethylene Twelve/TotalEnergies Polypropylene Unilever EO Surfactant Source: Tecnon OrbiChem
Proceeds from the transaction are expected to fund acceleration in LanzaTech’s commercial operations, capital requirements associated with development projects in which LanzaTech has chosen to participate with partners, and continued technological innovation. LanzaTech will continue to be based in Chicago, Illinois, and led by Dr. Jennifer Holmgren, Chief Executive Officer of LanzaTech, and other key members of LanzaTech’s executive leadership.
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