LanzaTech Secures €40 Million EU Innovation Fund Grant for first-of-its-kind integrated CCUS project in Norway

Rhea-AI Summary

LanzaTech (NASDAQ: LNZA) secured a €40 million EU Innovation Fund grant (subject to finalizing the grant agreement) to deploy a first commercial second-generation bioreactor at Eramet Norway's Porsgrunn manganese smelter.

The project aims to produce 23.5 kt (~8M US gallons) ethanol per year from CO-rich furnace gas and, if fully implemented with carbon capture and storage, target up to a 97% emissions reduction with an annual GHG avoidance of 1,698,175 tons CO2e. A concentrated CO2 co-product will be purified, liquefied and transported for permanent geological storage in the North Sea. Enova provided funding and technical support as Norway's National Contact Point.

Positive

• €40M EU Innovation Fund grant awarded
• Ethanol production target 23.5 kt/yr (~8M US gallons)
• Targeted GHG avoidance of 1,698,175 tons CO2e/yr
• Potential 97% emissions reduction if CCS fully implemented
• Integrates CCU with CCS to serve chemicals and aviation sectors

Negative

• Grant is subject to finalization of the grant agreement
• 97% emissions reduction is conditional on full CCS implementation

Insights

Carbon project analyst

LanzaTech won a conditional €40 million EU Innovation Fund grant to demonstrate an integrated CCUS ethanol project in Norway.

The project plans commercial deployment of LanzaTech's second-generation bioreactor to produce 23.5 kt of ethanol per year (~8M U.S. gallons) by consuming CO‑rich furnace gas from the Porsgrunn Manganese Smelter operated by Eramet Norway AS. The grant is subject to finalizing the agreement and will support demonstration and optimization under real industrial conditions.

The developers target up to a 97% emissions reduction and an annual GHG avoidance of 1,698,175 tons CO2e if CCS is fully implemented; a concentrated CO2 co-product will be liquefied and stored geologically in the North Sea. Watch for final grant agreement signatures and demonstration milestones over the coming implementation phase and any disclosures on timelines, CAPEX allocation, and verification of the claimed emission avoidance.

SKOKIE, Ill., Nov. 05, 2025 (GLOBE NEWSWIRE) -- LanzaTech Global, Inc. (NASDAQ: LNZA), a leader in industrial carbon recycling, is thrilled to announce the awarding of a €40 million grant from the European Union’s Innovation Fund, subject to the finalization of the grant agreement. The project, featuring the first commercial deployment of LanzaTech’s second-generation bioreactor, aims to produce 23.5 kt (~8M U.S. gallons) of ethanol per year by consuming smelter furnace greenhouse gases (GHG) from the Porsgrunn Manganese Smelter operated by Eramet Norway AS, a world leading ferroalloy producer.

If fully implemented to include carbon capture and storage LanzaTech and Eramet Norway AS seek to achieve up to a 97% reduction in emissions, targeting an annual GHG avoidance of 1,698,175 tons CO₂e. A co-product of the process, highly concentrated CO₂, will be purified, liquefied and transported for permanent geological storage in the North Sea, ensuring robust and sustainable disposal of carbon emissions.

This project highlights a pivotal advancement in sustainable industrial practices and demonstrates the innovative integration of carbon management technologies. By utilizing CO rich furnace gas from the ferroalloy production process, this project strategically links carbon capture and utilization (CCU) with carbon capture and storage (CCS) to service the needs of the chemicals and aviation sectors.

Jennifer Holmgren, CEO of LanzaTech, expressed her satisfaction with the project's success in the EU Innovation Fund’s evaluation: “The strength of our application underscores our commitment to innovation and robust technology. The project furthers our role in transforming the carbon recycling sector, demonstrating the significant environmental impact achievable through technology integration. This recognition reaffirms our position at the forefront of biotech and carbon management, aligned with the EU's environmental objectives. It also highlights the economic potential of our sustainable solutions, marking a crucial step in our mission to reduce industrial carbon emissions and advance sustainable aviation fuels.”

Enova SF, a Norwegian government enterprise focused on environmental protection and energy efficiency, has been instrumental in supporting the project through funding and technical assistance. Enova, acting as the National Contact Point for Norway in the EU Innovation Fund, recognizes the strategic importance of this project in advancing Norway's climate goals.

“The Innovation Fund is a key instrument for advancing technologies that deliver major emission reductions. The success of Norwegian projects shows that we have companies who dare to take risks and can deliver world-class solutions,” said Nils Kristian Nakstad, CEO of Enova.

The EU grant will focus on demonstrating and optimizing the technology under real-world industrial conditions and will serve as a critical steppingstone towards the broader application of this technology across other sectors and geographies, potentially transforming the global approach to industrial carbon emissions.

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), marine fuel and other downstream chemical derivatives. Operating commercially at six assets today, 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. www.lanzatech.com

Contact: freya@lanzatech.com

FAQ

What did LanzaTech announce on November 6, 2025 regarding LNZA?

LanzaTech announced a €40 million EU Innovation Fund grant for a commercial bioreactor project at the Porsgrunn smelter.

How much ethanol will the LNZA project produce per year?

The project aims to produce 23.5 kt per year, about 8 million US gallons annually.

What emissions reduction does the LNZA Porsgrunn project target?

If fully implemented with CCS, the project targets up to a 97% emissions reduction and 1,698,175 tons CO2e avoided annually.

Is the €40M EU Innovation Fund grant for LNZA final?

No, the grant is reported as subject to finalization of the grant agreement.

How will CO2 be handled in the LNZA project at Porsgrunn?

Highly concentrated CO2 will be purified, liquefied and transported for permanent geological storage in the North Sea.

What role did Enova play in the LNZA EU Innovation Fund award?

Enova provided funding and technical assistance and acted as Norway's National Contact Point for the Innovation Fund.