LanzaTech Awarded Significant Grant by UK Government to Propel Sustainable Aviation Fuel Production

Rhea-AI Summary

LanzaTech (NASDAQ: LNZA) has secured a £6.4 million grant from the UK government's Advanced Fuels Fund to advance two commercial-scale sustainable aviation fuel (SAF) plants. The funding will support the DRAGON (Decarbonizing and Reimagining Aviation for the Goal Of Netzero) projects in the UK.

DRAGON 1, located in Port Talbot, South Wales, will convert recycled carbon fuel ethanol into Advanced SAF using LanzaJet's Alcohol-to-Jet process. DRAGON 2, a Power-to-Liquid facility at a location to be determined, will transform waste carbon dioxide and green hydrogen into ethanol for SAF production.

Additionally, Project Speedbird by LanzaJet, in which LanzaTech holds a 36% stake, received £10 million in funding. The company's CirculAir™ technology, launched in 2024, enables SAF production from various waste carbon sources.

Positive

• Secured significant £6.4 million government grant for SAF production
• Strategic expansion with two commercial-scale plants in the UK
• Additional £10 million funding for Project Speedbird through 36% ownership in LanzaJet
• Innovative technology combining gas fermentation with Alcohol-to-Jet process
• Strong government backing validates technology and market position

Negative

• DRAGON 2 location still undetermined, indicating project uncertainty
• Heavy dependence on government funding for project development

Funding from Department for Transport to advance two commercial-scale plants in the UK

LONDON, July 22, 2025 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA) (“LanzaTech” or the “Company”) a leader in carbon management solutions, announced it has received a grant of £6.4 million from the UK government's Advanced Fuels Fund (AFF), operated by the Department for Transport (DfT).

The grant will accelerate the development of LanzaTech’s innovative DRAGON 1 & 2 projects, each playing a crucial role in the production of sustainable aviation fuel (SAF) in the UK. Project DRAGON stands for Decarbonizing and Reimagining Aviation for the Goal Of Netzero.

The DRAGON 1 project is LanzaTech’s existing UK SAF project that will convert recycled carbon fuel ethanol (including ethanol from LanzaTech’s gas fermentation process) into Advanced SAF in Port Talbot, South Wales, using the LanzaJet® Alcohol-to-Jet (AtJ) process.

The DRAGON 2 project is a Power-to-Liquid (PtL) facility that will convert waste carbon dioxide and green hydrogen into ethanol for subsequent conversion into PtL SAF at an adjacent facility using the LanzaJet® Alcohol-to-Jet (AtJ) process. The location for DRAGON 2 in the UK will be determined during this grant-funded project.

Integrating LanzaTech’s gas fermentation process with LanzaJet’s AtJ technology gives this approach a distinctive edge. By turning regional waste resources into valuable SAF, LanzaTech facilitates the production of low Carbon Intensity (CI) fuels, contributing positively to the UK’s SAF Mandate and supporting economic growth and job creation in industrial zones in the UK.

"The future of aviation fuel is ethanol-to-SAF and LanzaTech is at the forefront,” said Dr. Jennifer Holmgren, CEO of LanzaTech. “Our commitment to enabling cleaner jet fuel is bolstered by the UK government’s continued support and confidence in LanzaTech as a leader in the sector. This funding not only affirms the value of our unique technology and feedstock approach but also propels our mission to integrate air travel into a circular carbon economy. DRAGON 1 & 2 are set to drive the global SAF market forward and exemplify the UK's commitment to leading SAF innovation on the global stage.”

The UK government's significant investment in these projects underscores their confidence in LanzaTech's proven, commercial-scale technology and its potential to substantially boost the UK's SAF production. This endorsement not only solidifies LanzaTech's reputation as a leader in advancing global clean energy initiatives but also emphasizes the crucial role of feedstock providers. By leveraging low-cost, sustainable inputs for SAF production, LanzaTech is poised to play a key role in aiding the aviation sector's pursuit of its net-zero commitments.

Separately, Project Speedbird by LanzaJet, in which LanzaTech holds a 36% ownership stake, also received recognition and £10 million in funding from the Advanced Fuels Fund, further testament to the government's trust in the Lanza technology portfolio. In 2024, LanzaTech and LanzaJet partnered to create CirculAir™, that transforms nearly any form of waste carbon (including CO₂, MSW, agri residues) into SAF, combining the groundbreaking technologies of both companies to provide the aviation industry with a solution to produce waste-based SAF on a global scale.

Today's allocation boosts total government contributions through the Advanced Fuels Fund (AFF) to £198 million, aimed at expanding cleaner aviation technologies. This strategic investment is a testament to the UK government’s comprehensive approach to environmental strategies, aligning with initiatives like the recently enacted SAF Mandate. This funding round notably supports a broad spectrum of pathways and feedstocks for SAF production—an inclusive move by the UK government that recognizes the need for varied solutions in the pursuit of net-zero aviation.

LanzaTech is committed to continuing its collaborative efforts with the UK government, industry partners, and the global community to scale solutions that can transform waste carbon into an opportunity for sustainable growth. We are proud to be recognized as part of the diverse array of solutions required to achieve a sustainable future for aviation.

About LanzaTech

LanzaTech Global, Inc. (NASDAQ: LNZA) is a carbon management solutions company that transforms industrial emissions, gasified solid waste and carbon dioxide into recycled carbon ethanol via proprietary bio-fermentation technology. Ethanol is a crucial building block in the world – a key feedstock for Sustainable Aviation Fuel (SAF) and other downstream chemical derivatives. Operating commercially at six assets today, the expanding project pipeline is set to meet growing SAF demand on a global scale in the coming years. LanzaTech’s technology unlocks value across the supply chain, reducing the carbon footprint of hard-to-abate sectors while shepherding recycled carbon fuels and products to the world, building a circular carbon economy.

Investor Relations
John Ragozzino
Lanzatech@icrinc.com

Public Relations
Matt Dallas
Lanzatech@icrinc.com 

FAQ

What is the size of the grant LanzaTech (LNZA) received from the UK government in 2025?

LanzaTech received a £6.4 million grant from the UK government's Advanced Fuels Fund (AFF) for sustainable aviation fuel production.

Where will LanzaTech's DRAGON 1 SAF facility be located?

The DRAGON 1 facility will be located in Port Talbot, South Wales, where it will convert recycled carbon fuel ethanol into sustainable aviation fuel.

What is LanzaTech's CirculAir technology?

CirculAir™, launched in 2024, is a technology that combines LanzaTech and LanzaJet capabilities to transform various forms of waste carbon (CO2, MSW, agri residues) into sustainable aviation fuel.

How much ownership does LanzaTech have in Project Speedbird?

LanzaTech holds a 36% ownership stake in LanzaJet's Project Speedbird, which received £10 million in funding from the Advanced Fuels Fund.

What is the DRAGON project by LanzaTech?

DRAGON (Decarbonizing and Reimagining Aviation for the Goal Of Netzero) consists of two projects: DRAGON 1 converting recycled carbon fuel ethanol to SAF, and DRAGON 2, a Power-to-Liquid facility converting waste CO2 and green hydrogen into ethanol for SAF production.