London: Carbon recycling company LanzaTech Global, Inc. (NASDAQ: LNZA) has received a £6.4 million grant from the UK government’s Advanced Fuels Fund to support two sustainable aviation fuel (SAF) projects aimed at reducing emissions from air travel. The announcement was made Tuesday via a company press release, reports Investing.com.
The grant will go toward LanzaTech’s DRAGON 1 and DRAGON 2 initiatives. DRAGON 1 will convert recycled carbon ethanol into SAF at a facility in Port Talbot, South Wales, using LanzaJet’s Alcohol-to-Jet technology. DRAGON 2, whose location in the UK is still being finalized, will convert waste carbon dioxide and green hydrogen into ethanol, which will then be used for SAF production.
LanzaTech’s CEO Dr. Jennifer Holmgren said the company is proud to lead innovation in aviation fuel, noting, “Ethanol-to-jet fuel isn’t just an idea—it’s happening, and it’s the way forward.”
The funding comes as LanzaTech continues to invest in commercialization. The company currently operates six commercial sites around the world but is still working toward profitability. According to InvestingPro, LanzaTech has been burning through cash quickly, making the UK government support a timely boost.
This investment is part of the UK’s broader £198 million plan to grow its SAF industry under the recently introduced SAF Mandate. The mandate aims to make cleaner aviation fuels a mainstream part of the country’s net-zero strategy.
In a separate development, LanzaJet’s Project Speedbird, in which LanzaTech owns a 36% stake, also received £10 million from the same government fund. Project Speedbird is focused on scaling up SAF production in the UK.
Meanwhile, in the U.S., LanzaTech has announced a workforce reduction at its headquarters in Skokie, Illinois, which will take effect by August 10, 2025. The move is part of a strategy to shift from a research-heavy model toward more commercial operations.
The company has also extended the maturity date of a loan tied to a Series A Convertible Senior Preferred Stock Purchase Agreement to December 3, 2029. As part of the same agreement, it is extending deadlines for issuing warrants to purchase 780 million shares of common stock, pending shareholder approval.
LanzaTech’s integrated approach—combining its gas fermentation process with LanzaJet’s SAF production technology—continues to position the company as a key player in low-carbon fuel solutions, especially as governments and industries worldwide seek sustainable energy alternatives.
