LanzaTech's Strategic Moves: LanzaX Spin-Out and Interim CFO Appointment

LanzaTech (NASDAQ: LNZA), the carbon recycling company transforming waste carbon into sustainable fuels, chemicals, materials, and protein, has announced two significant strategic moves. The company plans to form LanzaX, a spin-out joint venture with Tharsis Capital, and has appointed Justin Pugh as the new Interim Chief Financial Officer (CFO). These moves aim to accelerate project development, reduce costs, and drive growth in the synthetic biology (synbio) landscape.



LanzaX Spin-Out and Joint Venture with Tharsis Capital

LanzaTech intends to spin out LanzaX, its wholly-owned synthetic biology platform, as a joint venture with Tharsis Capital. This strategic move will enable LanzaX to access necessary capital, accelerating the development of its robust pipeline of existing projects, including initiatives with acetone, isopropanol, and high-value specialty products. LanzaTech will contribute a number of existing synbio contracts and a portfolio of over 100 demonstrated molecules to LanzaX, which will leverage LanzaTech's proven commercial expertise in scaling ethanol production to scale new molecules quickly.

The spin-out is expected to reduce LanzaTech's cost structure by approximately $8 million annually, primarily related to the transfer of over 30 full-time employees to LanzaX. With the spin-out expected to be completed during 2025, LanzaTech anticipates realizing a portion of this benefit during 2025, with the full run-rate benefit being realized during 2026 and beyond.

Dr. Jennifer Holmgren, Chair and Chief Executive Officer of LanzaTech, expressed enthusiasm about the collaboration with Tharsis Capital, stating, "We are thrilled to welcome Tharsis Capital as our newest strategic partner, recognizing their strong belief in our vision and ambitions within the synbio landscape. We expect this collaboration to amplify our progress by leveraging shared goals and resources to foster significant advancements in sustainable chemical production."

Henri Arif, Managing Partner of Tharsis Capital, shared a similar sentiment, "The creation of LanzaX sets the stage for a transformational biomanufacturing platform that will leverage dedicated resources in order to fast track the development of an existing portfolio of near-commercial molecules in biochemicals, biomaterials, and a broad range of chemical specialties. The global footprint of gas fermentation assets deployed by LanzaTech at full commercial scale, combined with its world-leading team of synthetic biology experts joining LanzaX, will create a commercial launchpad that we believe will set a new benchmark in sustainable chemicals."

Appointment of Justin Pugh as Interim CFO

Alongside the LanzaX spin-out, LanzaTech appointed Justin Pugh as its new Interim CFO. Mr. Pugh brings 15 years of experience in finance and holds CFA, CPA, and ABV designations. His primary focus will be on implementing strategic cost reductions and reallocating resources to effectively harness the significant and growing momentum of ethanol as a critical feedstock for sustainable aviation fuel (SAF) production.

With the LanzaX spin-out expected to reduce costs by approximately $8 million annually, Mr. Pugh's appointment aligns with LanzaTech's cost reduction and resource optimization strategies. His expertise in finance will be invaluable in streamlining biorefining platform growth priorities and heightening focus on cost reductions.

In conclusion, LanzaTech's strategic moves, including the LanzaX spin-out and the appointment of Justin Pugh as Interim CFO, demonstrate the company's commitment to driving growth and innovation in the synthetic biology landscape. By leveraging shared goals and resources, LanzaTech and Tharsis Capital aim to foster significant advancements in sustainable chemical production and create a commercial launchpad for biochemistry.