Stock Groups

Microsoft, Shell invest in LanzaJet, sustainable jet fuel start-up

[ad_1]

In 2023, the LanzaJet Freedom Pines Fuels Plant in Soperton (Ga.) will begin to produce 10 million gallons per year of sustainable ethanol-based SAF and renewable Diesel.

Photo courtesy LanzaJet

In the fight to lower greenhouse gasses, jet fuel has been a problem.

Chicago-based start-up LanzaJetThe company is working to solve the problem by developing an alternative to conventional petroleum-based jet fuel, which emits less carbon and can be used with existing infrastructure in the airline industry.

Company, formed in 2020It hasn’t yet generated revenue but the organization has received plenty of funding. It was recently received $50 millionIn funding from Microsoft to add to existing investments from Shell, and a few other energy companies, and the U.S. Department of Energy has invested $14 millionIn a subsidiary company, to construct LanzaJet’s first Georgia plant. This plant should be producing millions upon millions of gallons sustainably jet and diesel fuels by 2023.

Non-military aviation represents 11% of United States transportation-related emissions, according to The White House. Almost all these emissions are caused by jet fuel says Dan Rutherford, the aviation director at the International Council on Clean Transportation. Take, for example: UnitedReports indicate that 15.49 million metric tonnes of carbon dioxide equivalent was produced in 2020. Another 15.39 million metric tons were derived from jet fuel.

It is not necessary to purchase new planes and engines.

To clean up the industry, it is important to be compatible with current planes. Airplanes can last between 20-30 years while designing new aircraft takes around a decade.

A global industry, also, is aviation. There must be a solution that works everywhere an airplane goes.

The U.S. might make some progress in the development and deployment of a hydrogen powered aircraft. India will be available to receive and refuel this aircraft. said LanzaJet CEO Jimmy Samartzis.

This leaves us with sustainable aviation fuel (or SAF), which can be blended with regular jet fuel in a 50/50 mix. LanzaJet can mix SAF with regular jet fuel to make a 50/50 mixture.

It’s all about urgency and the need to act today for us. CNBC spoke with Samartzis. SAF will be the most effective solution in the next years, and possibly for two more decades.

LanzaJet Freedom Pines Fuels is located in Soperton (Ga).

Photo courtesy LanzaJet

LanzaJet technology can use all ethanol made from plant materials. However, not all ethanol has the same climate impact.

United States 94% of ethanol is produced from cornAccording to the Department of Energy, it is. Alternative Fuels Data Center.

However, jet fuel made from cornethanol in the U.S. will emit emissions comparable to regular jet fuel once you account for all of the carbon dioxide that was emitted during its production. according to one analysis from the International Council on Clean Transportation. Samartzis refers to an Environmental Protection Agency analysis that estimates that SAF made from corn ethanol today has just 15% less “carbon intensity” that petroleum jet fuel. Rutherford however, says this analysis is “optimistic”. The EPA has also provided a roadmap that could allow corn ethanol to be made. 153% lower carbon intensity than conventional jet fuelRutherford describes this as “speculative,” because every new innovation must be implemented.

LanzaJet will only use ethanol with low carbon emissions.

LanzaJet will produce ethanol using low-carbon, high-intensity sugarcane and corn crop residues. This includes corn kernel fiber and corn stover.

LanzaTech, a sister company to LanzaTech, pioneered the biogas- and waste gas processing.one of CNBC’s Disruptor 50 companies). LanzaTech makes use of a bacteria fermentation process to convert pollutionIt is a similar process as making beer.

LanzaJet might use corn-ethanol in the future if possible, whether it is made through carbon capture, sequestration, or any other means.

Samartzis stated that there is still work in the corn-ethanol industry to increase the corn’s carbon intensity and create better data about the performance of corn with a lower carbon content than the one reported by CNBC. Some corn-ethanol producers have made good efforts to lower the carbon intensity.

Samartzis came to the start-up from United, where he worked for more than a decade to develop the sustainable aviation industry. According to Samartzis, the culture in this space has changed.

Around 2008 saw United’s alternative fuel research fueled by the skyrocketing crude oil price. However, efforts to reduce the impact of climate change are fueling industry momentum.

I believe the pressure to act is definitely there. Samartzis stated that it wasn’t present 13 years ago. That pressure does not come from investors. It comes from the consumers. It also comes from governments that are tightening up and promising better.

September the Biden Administration saidThe company was taking measures to decarbonize airline industry by 2050. SAF will play a major role in that effort.

According to the Biden administration, “In the future electric and hydrogen powered aviation could unlock affordable and convenient local or regional travel.” We need to build bold partnerships that will accelerate the rapid deployment of millions of gallons sustainable aviation fuels.

Race to the market

Samartzis said that LanzaTech’s work in the beginning has allowed LanzaJet move quickly.

The science behind new technology is complex and takes time. Scale-up in our case took almost 10 years,” Samartzis said to CNBC.

For ShellAccording to a spokesperson for LanzaJet, LanzaJet will be able to meet its target of producing around 2,000,000 tonnes per year in SAF by 2025. Shell plans to make 10% of global aviation fuel sales SAF by 2030. Shell will in the future sublicense LanzaJet technology to help achieve this goal.

Microsoft’s $50 Million investment in LanzaJet was part of its Climate Innovation FundSoftware giant Invest $1 Billion over 4 Years in Technology Development.

Microsoft also has access to LanzaJet’s renewable diesel, which it will be able to use power backup generators at its data centers.

While jet fuel is clearly the primary focus of LanzaJet it is also possible for LanzaJet use its own plant to produce renewable diesel. Samartzis claims.

LanzaJet is now able to offer its SAF product at an affordable price.

Samartzis stated that sustainable aviation fuel products have historically been 3x4x5x5x6x more expensive than conventional fossil-based jet fuel. We are trying to create a new industry. It’s our goal to help it gain momentum. We do this by saying “Our product isn’t 3x”

[ad_2]