Airbus has announced a strategic investment in LanzaJet, a company specializing in sustainable aviation fuel (SAF) technology and production. This move is part of LanzaJet’s ongoing $100 million funding round, aimed at scaling its ethanol-to-SAF technology. The investment reflects a growing trend in the aviation industry to seek sustainable alternatives to traditional jet fuels, aiming to reduce carbon emissions and environmental impact.
LanzaJet’s recent investments have included major players like Tokyo-based MUFG, Groupe ADP, Microsoft (NASDAQ:MSFT), and Southwest Airlines. These investments have come alongside support from other significant entities such as All Nippon Airways, Breakthrough Energy, British Airways, Mitsui & Co., Shell, and Suncor Energy. Historically, the aviation industry has been slow to adopt sustainable fuels, but recent years have seen a surge in interest and investment, as companies strive to meet stringent decarbonization goals. This shift represents a significant change in the industry’s approach to sustainability.
Ecosystem for Scaling SAF Industry
Jimmy Samartzis, CEO of LanzaJet, emphasized the importance of having a diverse range of strategic investors.
“LanzaJet intentionally developed a diverse portfolio of strategic investors comprised of leading, global companies to ensure we have the ecosystem to scale the SAF industry. This important investment from Airbus supports the growth of our company, enabling LanzaJet to scale the production and deployment of SAF to continue working towards meeting aviation’s decarbonization goals and developing a more sustainable industry.”
LanzaJet’s technology, known as “Alcohol-to-Jet,” converts waste-based and sustainable ethanol sources into SAF and renewable diesel. The company is on the verge of launching its first commercial-scale plant, LanzaJet Freedom Pines Fuels in Georgia, which will produce 10 million gallons of SAF and renewable diesel annually.
Airbus’s Commitment to SAF
Airbus’s investment aligns with its broader ambition to advance global SAF development. The company has set ambitious targets for SAF use, aiming to achieve 15% of its global fuel mix by 2024 and 30% by 2030. In 2023, Airbus used 11 million liters of SAF, surpassing its initial target. Currently, Airbus aircraft can operate on up to 50% SAF blends, with future capabilities expected to reach 100%. Julie Kitcher, Chief Sustainability Officer at Airbus, highlighted the significance of this partnership.
“Sustainable aviation fuels are one of the most important levers available to decarbonize aviation, but their production is still limited. Our partnership with LanzaJet demonstrates Airbus’ commitment to work with leading energy technology suppliers to explore innovative production pathways and scale SAF. This important partnership with LanzaJet underlines the importance of new technologies and cross-sector collaboration to achieve net-zero CO2 emissions by 2050.”
LanzaJet’s establishment in 2020 by LanzaTech marked a pivotal step in the advancement of SAF technology, focusing on renewable sources like low-carbon sugarcane, energy crops, forest residuals, agricultural wastes, and organic waste. The collaboration between Airbus and LanzaJet signifies a critical intersection of aerospace innovation and environmental sustainability. The ongoing progress in SAF technology indicates a robust future for the aviation industry’s efforts in minimizing carbon footprints.
Airbus’s strategic investment in LanzaJet represents a significant milestone in the advancement of sustainable aviation. This partnership not only aids LanzaJet in scaling its ethanol-to-SAF technology but also underscores Airbus’s commitment to achieving its environmental targets. The increasing focus on SAF illustrates a broader industry trend towards achieving net-zero CO2 emissions by 2050. Stakeholders in the aviation sector are likely to benefit from these advancements, which promise to bring more sustainable practices into the mainstream.
