LanzaTech to Establish New Joint Venture and Launch Spin-Out LanzaX Business and Appoint Interim CFO of LanzaTech By Investing.com
Announces intent to spin off and form a growth-focused joint venture for LanzaX, the company’s differentiated synthetic biology platform, with Tharsis Capital joining as a new LanzaX strategic partner to accelerate funding for synbio development
LanzaTech names new interim CFO to streamline biorefining platform’s growth priorities and boost focus on cost reduction
CHICAGO, Jan. 21, 2025 (GLOBE NEWSWIRE) — LanzaTech Global, Inc. (NASDAQ: LNZA) (LanzaTech or the Company), a carbon recycling company that converts waste carbon into sustainable fuels, chemicals, materials and proteins, today announced its intention to establish LanzaX, a business unit dedicated to its wholly owned synthetic biology platform. LanzaTech intends to spin off LanzaX from its core biorefining business as a joint venture with Tharsis Capital LLC (Tharsis Capital) in the coming months. The company also announced the appointment of Mr. Justin Pugh as interim chief financial officer of LanzaTech, who will succeed Mr. Geoff Trukenbrod, effective immediately.
LanzaTech Strategic Joint Venture and launch of LanzaX Spin-Out
The establishment and proposed spin-off of LanzaX, which consists of the company’s proprietary synthetic biology and strain engineering (synbio) platform and associated employees, is a strategic move aimed at accelerating project development while enabling a sharper focus on the company’s core biorefining operations growth priorities , including sustainable aviation fuel (SAF) projects.
In connection with its formation of LanzaX, LanzaTech has entered into an agreement with Tharsis Capital, a New York-based venture capital firm focused on sustainability, including bioenergy, biomaterials and chemicals specialization, to assist the Company in the proposed spin-off of LanzaX and assistance in researching potential investment opportunities for this business unit.
The strategic spin-off will better enable LanzaX to access the necessary capital to accelerate the development of its robust portfolio of existing projects, including high-value acetone, isopropanol and specialty product initiatives, with customers that include global companies, leading brands and universities. LanzaTech will contribute a number of existing synbio contracts and a portfolio of over 100 demonstrated molecules to LanzaX, which in turn will leverage LanzaTech’s proven commercial expertise in scaling up ethanol production to rapidly scale up new molecules. By its very nature, the production of new molecules using biology will also enable the use of existing commercially operational facilities, further accelerating the path to scale for these new chemicals.
In addition to increasing LanzaTech’s gas fermentation capabilities with the LanzaX spin-out, the Company expects to reduce its cost structure by approximately $8 million annually, primarily related to the transfer of more than 30 full-time employees to LanzaX. With the expected completion of the spin-out during 2025, LanzaTech expects to realize a portion of this benefit during 2025, with the full rate of realization during 2026 and beyond.
Today’s announcement reflects a strategic step in LanzaTech’s ongoing evolution, said Dr. Jennifer Holmgren, President and Chief Executive Officer. We are delighted to welcome Tharsis Capital as our newest strategic partner, recognizing their strong belief in our vision and ambitions within the synbio landscape. We expect this collaboration to enhance our progress by leveraging shared goals and resources to drive significant progress in sustainable chemical production. By channeling new capital and expertise into our synbio division, we are not only fueling its growth, but also strengthening the financial and operational foundations of our core biorefining operations.
The creation of LanzaX sets the stage for a transformational biomanufacturing platform that will leverage dedicated resources to fast-track the development of an existing portfolio of near-commercial molecules in biochemicals, biomaterials and a wide range of chemical specialties, said Henri Arif, Managing Partner of Tharsis Capital. The global footprint of LanzaTech’s gas fermenters at full commercial scale, combined with its world-leading team of synthetic biology experts joining LanzaX, will create a commercial launch platform that we believe will set new standards in sustainable chemicals. We are thrilled to join forces with LanzaTech to make LanzaX a global leader in biochemistry.
LanzaTech Appoints Interim Chief Financial Officer
In addition to the LanzaX spin-out, LanzaTech also appointed Mr. Justin Pugh as the new Interim Chief Financial Officer. Mr. Pugh’s initial priorities will be focused on implementing strategic cost reductions and reallocating resources to effectively capitalize on ethanol’s significant and growing momentum as a critical feedstock for SAF production.
With extensive skills in public company finance, strategy, accounting, treasury and risk management, Mr. Pugh has more than 15 years of experience in providing strategic, operational and financial solutions to companies and their related stakeholders. He served as interim CFO and was part of the CFO transition team for three different renewable energy companies. Most recently, Justin worked with the Energy, Renewables and Energy Transition team at FTI Capital Advisors. Mr. Pugh holds the designation of Chartered Financial Analyst (CFA), Certified Public Accountant (CPA) in the State of Illinois, and Chartered Business Valuation (ABV) from the American Institute of Certified Public Accountants (AICPA).
dr. Holmgren added, We believe Justin will play a key role in supporting the execution and refinement of our strategy as we intensify our focus on right-sizing our cost structure, deploying our commercialized technology globally and ultimately accelerating our path to profitable operations with a sharper focus. We look forward to working together as we execute our long-term growth strategy and build a strong financial foundation to support the significant growth ahead.
Dr. Holmgren concluded, I would like to sincerely thank Geoff for his valued service over the past four years and wish him well in his future endeavors.
LanzaTech has launched a search for a permanent financial director of the company.
About LanzaTech
LanzaTech Global, Inc. (NASDAQ: LNZA) is a carbon recycling company that turns waste carbon into sustainable fuels, chemicals, materials and proteins for everyday products. Using its biorecycling technology, LanzaTech captures the carbon generated by energy-intensive industries at the source, preventing it from being released into the air. LanzaTech then gives that captured carbon new life as a clean substitute for pristine fossil carbon in everything from household cleaners and clothing fibers to packaging and fuel. By partnering with companies across the global supply chain such as ArcelorMittal (NYSE: ), Coty (NYSE: ), Craghoppers, REI and LanzaJet, LanzaTech is paving the way for a circular carbon economy. For more information about LanzaTech, visit https://lanzatech.com.
About the capital of Tharsis
Tharsis Capital LLC is a venture capital and advisory firm specializing in sustainable impact investing. Since its inception in 2014, Tharsis Capital has helped raise a total of close to $500 million. Henri Arif, founder and managing partner of Tharsis Capital, and advised on significant transactions in biomaterials companies. Henri’s expertise in finding, executing and leading innovative deals has made him a trusted partner to institutional investors, family offices and management teams within the biomaterials industry.
Forward-looking statements
This press release includes forward-looking statements regarding, among other things, the plans, strategies and prospects, both business and financial, of LanzaTech. These statements are based on the beliefs, assumptions, projections and conclusions of LanzaTech’s management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions, many of which are beyond LanzaTech’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. LanzaTech cannot assure you that it will achieve or realize these plans, intentions or expectations. Forward-looking statements are not guarantees of future performance, conditions or results, and you should not rely on forward-looking statements.
In general, statements that are not historical facts, including those regarding possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded, followed by or include the words believes, estimates, expects, projects, anticipates, may, will, should, seeks, plans, plans, anticipates, intends or similar expressions. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: time delays in progressing projects to the final investment decision stage or under construction; failure of customers to adopt new technologies and platforms; fluctuations in the availability and price of raw materials and other process inputs; availability and continuation of state funding and support; broader economic conditions, including inflation, interest rates, supply chain disruptions, employment conditions and competitive pressures; unforeseen technical, regulatory or commercial challenges in scaling proprietary technologies, business functions or operational disruptions; and other economic, business or competitive factors and other risks and uncertainties, including the risk factors and other information contained in LanzaTech’s most recent annual report on Form 10-K and all subsequent quarterly reports on Form 10-Q, as well as other existing and future filings with the Commission for US Securities and Exchange.
All forward-looking statements are based only on information currently available to LanzaTech and speak only as of the date they are made. LanzaTech undertakes no obligation to update or publicly revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
LanzaTech Global, Inc.
Investor relations
Kate Walsh
Vice President, Investor Relations and Taxes
Investor.Relations@lanzatech.com
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Director of Communications
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Source: LanzaTech Inc.
