LanzaTech Shares Surge on $3 Million DOE Grant for Carbon Capture Technology
LanzaTech Global, Inc. (LNZA) shares soared on Wednesday after the company announced it had received a significant boost from the U.S. Department of Energy (DOE). The DOE’s Office of Fossil Energy and Carbon Management (FECM) awarded LanzaTech a $3 million grant as part of a broader $29 million investment program aimed at advancing carbon management priorities.
This grant is a major win for LanzaTech and its groundbreaking Project ADAPT (Accelerating Decarbonization via Advanced Production Technologies). The project has been selected for its alignment with FECM’s mission to transform CO2 from a climate change culprit into a valuable resource. LanzaTech’s existing expertise in using CO2 as a feedstock will be leveraged to produce isopropanol at a pilot scale, with the ambitious goal of scaling up the process and technology.
Project ADAPT is a collaborative effort, with the majority of funding coming from the $3 million DOE grant, complemented by approximately $0.8 million in contributions from LanzaTech. This brings the total estimated project cost to $3.8 million, with the majority of the revenue expected to be realized and impact financial results positively in 2025 and 2026.
The DOE’s investment in Project ADAPT aligns perfectly with the Biden-Harris Administration’s ambitious climate goals. These goals include achieving a carbon-neutral power sector by 2035 and reaching net-zero greenhouse gas emissions by 2050. The administration recognizes the critical role that carbon capture and utilization technologies play in achieving these objectives.
Jennifer Holmgren, CEO of LanzaTech, expressed her enthusiasm about the project and its potential impact. She stated, “CO2 is an essential feedstock of today and the future, and Project ADAPT leverages our expertise and existing operations to accelerate the commercialization of transformational carbon capture and utilization technologies that deliver cleaner and more sustainable energy and products.”
This recent grant is a strong indicator of the growing momentum and investment in clean energy technologies. It also highlights LanzaTech’s position as a leader in the carbon capture and utilization space. The company’s success in securing this grant underscores the significant market opportunity and the potential for its innovative solutions to contribute to a more sustainable future.
Market Reaction:
LNZA shares responded positively to the news, surging 18.4% to $1.995 at the last check on Wednesday.Looking Ahead:
LanzaTech will be reporting third-quarter 2024 financial results on November 8, 2024. Investors will be eager to see the impact of this DOE grant and how it contributes to the company’s overall financial performance.This news highlights the growing importance of clean energy technologies and the role they play in addressing climate change. As investors and policymakers alike increasingly focus on sustainability, companies like LanzaTech are well-positioned to capitalize on this trend and contribute to a cleaner, more sustainable future.
