LanzaJet Secures $47M in SAF Funding Round Led by Shell and IAG

Sustainable Aviation Fuel (SAF) producer LanzaJet has secured $47 million in a new funding round co-led by energy giant Shell and International Airlines Group (IAG), the parent company of British Airways. The investment is intended to accelerate the commercial deployment of LanzaJet's proprietary Alcohol-to-Jet (ATJ) technology, a critical pathway for decarbonizing the aviation sector.

This capital infusion represents the first close of a targeted $135 million equity round and establishes a pre-money enterprise valuation of $650 million for LanzaJet, according to a company press release. The funding underscores growing confidence from major industry players in emerging SAF production methods as airlines work toward ambitious net-zero emissions goals. The investment by IAG and Shell signals a strategic move to secure future low-carbon fuel supplies and support the scaling of technologies essential for the industry's energy transition.

Funding Details and Investor Confidence

The $47 million round saw participation from other existing investors, including Groupe ADP, LanzaTech, and Mitsui. The capital structure also includes a grant from the UK Department for Transport's Advanced Fuels Fund, highlighting government support for developing a domestic SAF industry. The decision by established partners to lead the round demonstrates a strong belief in the viability and potential of LanzaJet's technology.

Jimmy Samartzis, Chief Executive Officer of LanzaJet, commented on the investment. "The decision by our existing investors to lead this fundraising round reaffirms their conviction in our technology and sends a strong signal to the entire industry that LanzaJet is committed to unlocking new value for ethanol, creating opportunity for economic development, and defining the future of fuels for transportation," he stated.

The Role of Alcohol-to-Jet Technology

LanzaJet's Alcohol-to-Jet (ATJ) process is an innovative pathway for producing Sustainable Aviation Fuel, a non-conventional, low-carbon jet fuel made from renewable sources. The technology converts alcohols, such as ethanol derived from agricultural waste or captured industrial carbon, into a synthetic kerosene that is chemically identical to conventional jet fuel. This allows it to be used in existing aircraft and fueling infrastructure as a 'drop-in' fuel.

The ATJ pathway is significant because it can utilize a diverse range of feedstocks, avoiding competition with food crops and offering a route to a more circular carbon economy. LanzaJet's process represents the first commercial-scale application of this ethanol-to-jet conversion, positioning the company as a key player in the next generation of SAF production.

Broader Industry Context

SAF is widely regarded as the most viable solution for significantly reducing aviation emissions in the short-to-medium term. The global SAF market is projected to expand dramatically, growing from an estimated $2.72 billion in 2025 to over $40 billion by 2034. However, significant challenges remain. Currently, SAF accounts for approximately 0.1% of the total jet fuel market, with high production costs and feedstock availability acting as major constraints to wider adoption.

Direct investments from airlines and energy companies, such as the LanzaJet deal, are becoming an increasingly common strategy to de-risk new technologies and secure offtake agreements. For an airline group like IAG, which also owns Iberia, Aer Lingus, and Vueling, securing a reliable supply of SAF is crucial for meeting regulatory mandates and corporate sustainability targets. For Shell, the investment aligns with its strategy to expand its portfolio of low-carbon energy solutions.

Why This Matters

This funding round is a critical milestone for LanzaJet and the broader SAF industry. It provides the necessary capital to scale a promising technology and validates the ATJ production pathway with backing from two of the most influential entities in aviation and energy. The investment accelerates the transition from pilot projects to commercial-scale facilities, a necessary step to increase SAF availability and drive down costs. For the aviation industry, the success of companies like LanzaJet is fundamental to achieving its long-term decarbonization commitments.

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