Q1 2024 LanzaTech Global Inc Earnings Call

Please standby we're about to begin.

Operator: Please stand by; we're about to begin. Good morning, everyone, and welcome to today's Lanzatech Global First Quarter 2024 Earnings Conference Call.

Speaker Change: Good morning, everyone and welcome to today's Atlanta Tech Global first quarter 2024 earnings Conference call.

Operator: At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing Star 1 on your telephone keypad. You may withdraw yourself from the queue at any time by pressing Star 2. Also, today's call is being recorded, and I will be standing by if anyone should need any assistance. And now, at this time, I'll turn things over to Omar El-Sharkawy, Vice President of Corporate Development. Please go ahead, sir.

Speaker Change: At this time all participants are in a listen only mode. Later, you will have the opportunity to ask questions. During the question and answer session.

Speaker Change: You May register to ask a question at any time by pressing star one on your telephone keypad.

Speaker Change: They withdraw yourself from the queue at any time by pressing star. Two also today's call is being recorded and I will be standing by if anyone should need any assistance and now at this time I'll turn things over to Omar Al Sharq Howie Vice President of corporate development. Please go ahead, Sir good morning, and thank you for joining us for <unk> Global Inc.

Omar El-Sharkawy: Good morning, and thank you for joining us for Lanzatech Global, Inc.'s first quarter 2024 earnings conference call. On the call today, I'm joined by our board chair and CEO, Dr. Jennifer Holmgren, and our CFO, Jeff Truckenberg.

Speaker Change: First quarter 2024 earnings conference call on.

Speaker Change: On the call today I'm joined by our Board Chair and CEO, Dr. Jennifer Holmgren, and our CFO, Jeff <unk>.

Omar El-Sharkawy: Earlier this morning, we issued a press release with our first quarter 2024 financial and operating results, as well as an investor presentation summarizing the company's performance and key operational highlights for the quarter. Please also reference our quarterly report on Form 10-Q for the quarter ending March 31, 2024, filed today. Both our press release and results summary investor presentation can be found in the investor relations section of our website at www.Lanzatech.com.

Speaker Change: Earlier. This morning, we issued a press release with our first quarter 2024 financial and operating results as well as an investor presentation summarizing the company's performance and key operational highlights for the quarter.

Speaker Change: Please also reference our quarterly report on Form 10-Q for the quarter ending March 31, 2024 filed today.

Speaker Change: Both our press release and results summary, investor presentation can be found in the Investor Relations section of our website at Www Dot Lanza Dot com.

Omar El-Sharkawy: Before we begin, I'd like to direct you to the disclaimers in the front of the company's investor presentation and remind you that today's call may include forward-looking statements. Any statements describing our beliefs, goals, plans, strategies, expectations, projections, forecasts, and assumptions are forward-looking statements. Please note that the company's actual results may differ from those anticipated by such forward-looking statements for a variety of reasons, many of which are beyond our control. Please see our recent filings with the Securities and Exchange Commission, which identify the principal risks and uncertainties that could affect our business, prospects, and future results. We assume no obligation to update publicly any forward-looking statements.

Speaker Change: Before we begin I would like to direct you to the disclaimers in the front of the company's Investor presentation and remind you that today's call may include forward looking statements.

Speaker Change: Any statements, describing our beliefs goals plans strategies expectations projections forecast and assumptions are forward looking statements.

Speaker Change: Please note that the company's actual results may differ from those anticipated by such forward looking statements for a variety of reasons many of which are beyond our control.

Speaker Change: Please see our recent filings with the Securities and Exchange Commission, which identify the principal risks and uncertainties that could affect our business prospects and future results.

Speaker Change: We assume no obligation to update publicly any forward looking statements.

Speaker Change: And we will be discussing and providing certain non-GAAP financial measures today, including adjusted EBITDA.

Speaker Change: Please see our earnings release and filings for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measure.

Speaker Change: Today's call will begin with remarks from Jennifer providing an overview of our performance and our recent financial results. Jeff will then review in greater detail, our financial results and Jennifer will conclude with a few closing remarks.

Speaker Change: The conclusion of these prepared remarks, we will open the line for questions with that I'll turn the call over to Jennifer.

Omar El-Sharkawy: In addition, we will be discussing and providing certain non-GAAP financial measures today, including adjusted evit. Please see our earnings release and filings for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measure. Today's call will begin with remarks from Jennifer, providing an overview of our performance and our recent financial results. Jeff will then review in greater detail our financial results, and Jennifer will conclude with a few closing remarks. At the conclusion of these prepared remarks, we will open the line for questions. With that, I'll turn the call over to Jennifer.

Jennifer Holmgren: Thank you, Omar, and thanks to everybody joining us today. We appreciate your ongoing interest in and support of LanzaTech. I'd like to begin by sharing five key things from the past several months that I'd like for you to take away from this call. These are all outlined on slide 5.

Jennifer Holmgren: Thank you Omar and thanks to everybody joining us today, we appreciate your ongoing interest in and support if that's okay.

Jennifer Holmgren: I'd like to begin by sharing five key things from the past several months like Street you take away from this call are outlined on slide five.

Jennifer Holmgren: First, we delivered financial results for the first quarter right in line with our internal forecasts and guidance provided last quarter. Revenue of approximately $10 million, gross margin of 34%, and gross profit of $3.5 million all increased year-on-year as we continue to scale and optimize the business while closely managing costs across the organization. Second, we announced in March that Project Secure, where our partner Technique Energy was selected by the U.S. Department of Energy to receive a $200 million grant.

Jennifer Holmgren: First we delivered financial results this quarter right in line behind internal forecast and guidance provided last quarter.

Jennifer Holmgren: Revenue was approximately $10 million gross margin of 34% and gross profit of $3 $5 million all increased year on year as we continue to scale and optimize the business while closely managing costs across the organization.

Jennifer Holmgren: Second we announced in March the frantic secure ramp patented technip energies into electric Thank you Richard.

Speaker Change: G C.

Jennifer Holmgren: <unk> $200 million grant.

Jennifer Holmgren: This commercial project will leverage LAMP attacks and Technique energies transformational technologies to produce sustainable ethylene from captured carbon dioxide emissions, further validating the transformative nature of our carbon recycling technology and laying the groundwork for highly replicable project opportunities for Lancet Tech and more than 370 ethylene steam crackers across the globe. Thirdly, it was an extraordinary quarter for sustainable aviation fuel, our investment in LanzaJet, and our role in the broader sustainable aviation sector, which continues to gain significant momentum globally.

Jennifer Holmgren: Commercial practice leverage lender action Technip energies transformational technologies.

Jennifer Holmgren: Do sustainable accurately captured carbon dioxide emissions.

Jennifer Holmgren: Theyre validating the transformative nature of that I'd be recycling technology and lays the groundwork for highly replicable.

Jennifer Holmgren: The default.

Jennifer Holmgren: Mm 370, <unk> steam crackers across the globe.

Jennifer Holmgren: It was an extraordinary quarter for sustainable aviation fuel our investment in land and now roll into broader SaaS sector.

Jennifer Holmgren: <unk> gained significant momentum globally.

Jennifer Holmgren: In January, LanzaTech, in which we continue to hold an approximate 25% ownership interest, inaugurated the world's first ethanol-to-shaft facility in Silverton, Georgia. The achievement marks a strategic and historic milestone not just for LanzaJet but for the growing SAC economy at large, as this 10 million gallon per year facility brings a new production route to commercial scale, the Alcohol-to-Jet or ATJ pathway. LanzaJet is in the process of completing an approximate $100 million investment round to accelerate its growth from some of the largest and most influential companies and investors in the world, with commitments already from Microsoft's Climate Innovation Fund and Southwest Airlines.

Jennifer Holmgren: In January launch occurred in which we continue to hold an approximate 25% ownership interest in accuray at the worlds most economic SaaS facility.

Jennifer Holmgren: Okay.

Jennifer Holmgren: The achievement marks a strategic and historic milestone not just for lunch again next time.

Jennifer Holmgren: The growing strength economy at large.

Jennifer Holmgren: 10 million gallon per year has confirmed that he brings a new production to.

Jennifer Holmgren: To commercial scale.

Jennifer Holmgren: And Chad or atg.

Jennifer Holmgren: Separately lunch occasion expansion, such completing an approximate $100 million investment brown.

Jennifer Holmgren: Turning to the largest and most influential company.

Jennifer Holmgren: Investors seem to bloom with commitments already from Microsoft climate innovation.

Jennifer Holmgren: And southwest Airlines.

Jennifer Holmgren: Fourth, we continue to advance our growing pipeline of commercial-scale projects while expanding the scale and diversity of the feedstocks and representative geographies. This includes growing the base of projects heading to the top of our development pipeline, as well as advancing projects through the various development stages. And finally, we are reiterating our 2024 financial and operating guidance introduced earlier this year. This includes expected revenue of 90 to 105 million dollars, which at the midpoint reflects top line growth of approximately 55 percent over last year's performance.

Jennifer Holmgren: We continue to advance our growing pipeline of commercial scope projects weren't expanding the scale and diversity of the feedstocks and represented geographies.

Jennifer Holmgren: Encourage scrubbing debate, Brian extending to the thoughtfulness of Goldman pipeline.

Jennifer Holmgren: Wellington benching projects through the various stages.

Jennifer Holmgren: And finally, we are reiterating our 2024 financial and operating guidance introduced earlier this year.

Jennifer Holmgren: Included expected revenue of $90 million to $105 million, which at the midpoint reflects top line growth of approximately 55% over last year.

Jennifer Holmgren: Yes.

Jennifer Holmgren: From dish you can see that we continue to execute our growth plan, while maximizing operational nature flexibility.

Jennifer Holmgren: From this, you can see that we continue to execute on our growth plan while maximizing operational financial flexibility across all parts of our business. As we mentioned in our previous quarterly calls, we are committed to a culture of safety and are proud to report that we completed the quarter without any safety incidents at our facilities in the field or in the laboratory. Regrettably, we did, however, have one recordable loss and injury due to an office-place incident during the quarter.

Jennifer Holmgren: Okay.

Jennifer Holmgren: As we mentioned in our previous quarterly calls we are committed to a culture of safety and are proud to report that we concluded the quarter here without any safety incidents in our fixed charities in field or in the laboratory.

Jennifer Holmgren: Regrettably, we did however have one recordable loss spending due to an office place and Shannon.

Jennifer Holmgren: Okay.

Jennifer Holmgren: I would like to now review the key highlights from the first quarter of 2024, starting with Project Secure, our sustainable ecoline from carbon dioxide project in partnership with Technop Energy. As shown on slide 6, Project Secure is a commercial demonstration of carbon capture and utilization. The grant funding of up to $200 million from the U.S. Department of Energy will support the design, engineering, and construction of Project Secure at a U.S. Eppling-Greco facility. We expect work on this project to commence in the fall when we finalize the contracting details associated with this project.

Jennifer Holmgren: I would like to now review the key highlights from the first quarter of 'twenty 'twenty four starting the project to secure a sustainable ethylene from carbon dioxide project in partnership with Technip energies.

Jennifer Holmgren: As shown on slide six project secured is a commercial demonstration of carbon capture and utilization.

Jennifer Holmgren: Congrats on being with up to $200 million from the U S Department of energy to support the design engineering and construction projects secure.

Jennifer Holmgren: Operating accomplishments Germany.

Jennifer Holmgren: We expect to work on this project to commence in the fall when we finalized the contract.

Jennifer Holmgren: Associated with this policy.

Jennifer Holmgren: By combining the LanzaTech gas fermentation technology with Technipa Energy's ethanol-to-ethylene technology, this transformational project is expected to produce 30,000 tons of sustainable ethylene from captured carbon dioxide emissions at an ethylene cracker operating at a military petrochemical facility in the U.S. In turn, this sustainable production will reduce the carbon intensity of the existing ethylene production at the facility. Ethylene has a massive global market projected to reach 200 billion annually by 2030 and is often referred to as the world's most important chemical given its use as a key building block in countless products we use every day, from clothing to packaging to phones to jet fuel.

Jennifer Holmgren: Combining the lunch guests fermentation technology.

Jennifer Holmgren: Teach ethanol ethylene technology.

Jennifer Holmgren: Transformational project is expected to produce 30000 tons per year of sustainable ethylene to capture carbon dioxide emissions at an ethylene cracker operating adamantium petrochemical concern within the U S.

Jennifer Holmgren: This sustainable production will reduce the carbon I'm sitting at the existing bunker production Shelby.

Jennifer Holmgren: Ethylene has a massive global market projected to reach 200 billion annually.

Jennifer Holmgren: Already and.

Jennifer Holmgren: Austin, we tend to drink Kurt.

Jennifer Holmgren: What's most important chemical.

Jennifer Holmgren: Building block.

Jennifer Holmgren: This product can be see some clothing to packaging.

Jennifer Holmgren: Jet fuel.

Jennifer Holmgren: However, ethylene production is also a major source of emissions globally responsible for the release of over 500 million tons of carbon dioxide into the atmosphere per year and is in need of carbon abatement solutions like LanzaTech. Project Secure offers an immediate and highly replicable solution to decarbonize ethylene production using existing infrastructure. Technique Energies is the global leader in providing steam cracker technology to the chemical industry, with 40-50% of the global licensing market share for ethylene production. The modular design of Project Secure is intended to be easily deployable at ethylene crackers around the world, for which there are more than 370.

Jennifer Holmgren: Hello is it ethylene production is also meet yours Joseph emissions globally.

Jennifer Holmgren: <unk> solution can be simple the 500 million tons of carbon dioxide into that mix shift there, yet and you need a carbon abatement solutions.

Jennifer Holmgren: Thanks.

Jennifer Holmgren: Plastic secure attrition immediate and highly replicable solution can be carbonite.

Jennifer Holmgren: The lean production using existing infrastructure.

Jennifer Holmgren: And <unk>, the global leader in providing steam cracker technology to the chemical industry with 40% to 50% of the global licensing market share by ethylene production.

Jennifer Holmgren: Modular design of passive securities intended to be easily the valuable like ethylene crackers around the globe.

Jennifer Holmgren: More than 370.

Jennifer Holmgren: This provides an enormous commercial opportunity for LanzaTech and Technique to rapidly penetrate the ethylene value chain with its joint technology offering and capture a significant portion of this market given our established licensing models. Looking now at sustainable aviation fuel on slide 7, we remain bullish on the shaft market. As I noted earlier, it has been an increasingly exciting few months for LanzaJet and the SAF market more broadly, and we believe we are well positioned to play a significant role in the proliferation of SAF production through the alcohol-to-jet pathway.

Speaker Change: This provides an enormous commercial opportunity tremendous you've taken thank you.

Jennifer Holmgren: As we penetrate the ethylene value chain.

Jennifer Holmgren: <unk> technology, offering and capture a significant portion of this market given our established licensing models.

Jennifer Holmgren: Looking now at sustainable Aviation Pier, one snipe Shannon.

Jennifer Holmgren: Bullish on this market.

Jennifer Holmgren: As I noted earlier it was increasingly exciting few months along with Jack in the SaaS market more broadly and we believe we are well inflation deflation yet to kind of roll into kind of iteration of staff reduction.

Jennifer Holmgren: The alcohol to jet badly.

Jennifer Holmgren: LanzaTech's ethanol will be a critical feedstock for SACs, and when coupled with LanzaTech's technology, enables the production of SACs from a variety of waste inputs and residues, including municipal solid waste and e-fuel. The inauguration and start-up of LanzaTech's Freedom Pines Fuels Facility, the world's first biorefinery that transforms ethanol into sustainable radiation fuel, is

Jennifer Holmgren: Landfill ethanol critical feedstock for SaaS and when coupled with landscape technology enables production of SaaS and that variety of breaching the gym, Betsy is including municipal solid waste and each field.

Jennifer Holmgren: And aggravation and startup of man to catch freedom minefields facility, the world's first bio refinery get Tom Swanson ethanol.

Jennifer Holmgren: Sustainable aviation fuel.

Jennifer Holmgren: Game changer, we expect a difference for reading will begin producing SaaS by the end of the second quarter and ramp up to full production of it of course with UBS.

Jennifer Holmgren: We expect that the facility will begin producing SAF by the end of the second quarter and ramp up to full production over the course of the year. This facility will focus on maximum production of SAF at 90% of the product output with the remainder 10% as renewable diesel, which is a unique capability of the LanzaTech technology and unmatched by other pathways. We've made good progress on the opportunities in our commercial pipeline that focus on integrated solutions to convert waste gas and residues through the shaft by pairing LanzaTech's gas fermentation technology with the LanzaJet alcohol-to-jet process.

Jennifer Holmgren: This facility will focus on Matthew on production of Shack at 90% of the product.

Jennifer Holmgren: Remainder, 10% as renewable diesel.

Jennifer Holmgren: Which is a unique capability of the landscape of technology and unmatched by our athletes.

Jennifer Holmgren: We've made good progress on the opportunities in our commercial pipeline get focused and integrated solutions to convert waste gas and Chris. It is it'll be shaft, Mike Barry Landa, Thanks, Ghansham mutation technology with an alcohol to jet crashes.

Jennifer Holmgren: Our project with Aguirre in Abu Dhabi to take gattified solids through the SAF and our project in New Zealand, which would earn New Zealand more than the New Zealand government to take predominantly gassified forestry residences through the SAF, both contributed to engineering services revenue during the first quarter. Our project Dragon in the UK, taking industrial afgas through the SAF, is in advanced engineering, with the front-end engineering and design completed, and planning permission granted for the SAF unit.

Jennifer Holmgren: Our policy could mirror in Abu Dhabi.

Jennifer Holmgren: Despite solid through the shaft and a project in New Zealand with entertainment that didn't get on government to date predominantly dancers like Boris to get reduced through the shaft.

Jennifer Holmgren: Tribute to engineering services revenue during the first quarter.

Jennifer Holmgren: Drastic dragging in the UK, taking industrial scan through the shaft is in advanced intermediary, but the front end engineering and design completed and planning permission granted for the sake of it.

Jennifer Holmgren: We continue to utilize the grant funding received by the UK Department of Transport to bring that project to FID. It recently announced that the UK SaaS mandate is positive for the overall UK shaft market and specifically supportive of our process and Project Dragon. The mandate stipulates that shafts must account for 2% of all fuel in the aviation sector with the threshold increasing to 10% in 2030 and 22% in 2040. Importantly, the mandate provides a cap on shaft production via the hydro process S3.

Jennifer Holmgren: We continue to utilize the grant funding received by the U K Department for transport.

Jennifer Holmgren: Brian.

Jennifer Holmgren: Thanks.

Speaker Change: The recently announced <unk> mandate is positive.

Speaker Change: UK market physically supported by process and Patrick Dragon.

Speaker Change: We can mandate stipulates that Chad, Michigan for 2%.

Speaker Change: All feeling deviation checking with the threshold increasing to 10% in 2030 and 22% in 2040.

Speaker Change: Importantly, the mandate the cab and chassis production via the hydro conscious editors and fatty acids or Hesse production pathway that becomes more stringent over time, which means that we shouldn't forget that in markets like Dan shop in the U K.

Jennifer Holmgren: and fatty acids or HEPA production pathway that becomes more stringent over time, which means there's a protected market for advanced staff in the UK, such as staff produced from waste-based ethanol. Additionally, the SAF buyout price, or the price above which airlines can pay to opt out of their obligations, has been significantly increased as a result of the mandate further supporting staff processes in this market.

Speaker Change: And staff produced from waste based ethanol.

Speaker Change: Recently, the SaaS buyout price or the price that goes with the airlines can be to opt out of their obligations has been significantly increased in each of the mandate.

Speaker Change: Supporting cash gross receipts English market.

Jennifer Holmgren: In addition to a role as feedstock provider of waste-based ethanol to alcohol for jet shaft production, we are extremely proud of our strategic ownership stake in LanzaJet and welcome new world-class co-investors into LanzaJet. We continue to hold our approximate 25% ownership in LanzaJet today. The recent equity raised by LanzaJet has been done in an unpriced round and is therefore non-diluted to LanzaTech at this

Speaker Change: In addition to a growing lets feedstock provider wastepaper ethanol alcohol to jet SaaS production.

Speaker Change: Extremely proud of our strategic ownership stake and answered yet.

Speaker Change: Welcome New broke glass co investors in design as you said, we continue to hold an approximate 25% ownership in lancet yesterday.

Speaker Change: The equity rates by land that has been done and then price Ram and his staff for men can be the dementia. Thank at this time.

Jennifer Holmgren: Additionally, LanzaJet's recent capital raise does not impact the mechanism by which LanzaTech has issued additional LanzaJet shares to increase their ownership percentage as the original co-investors and others build their own plants using LanzaJet shaft technology. Moving to slide 8 in our commercial project pipeline, our total operating project count stands at 8, which includes both commercial-scale and demonstration-scale projects. Please note that for the purposes of the project funnel, we have now separated out the LanzaTech pre-combined fuels facility from this illustration.

Speaker Change: Recently, we ran to just recent capital raise does not impact <unk>.

Speaker Change: You mentioned that we plan to attack it.

Speaker Change: Should additional.

Speaker Change: Shares to increase your ownership percentage I see your original core investors and others.

Speaker Change: Ooh tranche seasoned land with jet shaft technology.

Speaker Change: Moving to slide eight and our commercial project pipeline I've told them upgrading project count stands at eight which includes both commercial scale demonstration scope classics.

Speaker Change: Note that for the purpose you sort of bracket funnel, we have now separated out the landscape.

Speaker Change: <unk> got some relief from dish illustration.

Jennifer Holmgren: This LanzaTech project was previously in the construction category, and going forward, we will provide updates on the project separate from the LanzaTech biorefining project pipeline. The LanzaTech Freedom Pines Fuels project is currently in commissioning and startup and is on track for production of fuel in the second quarter of this year. The total and self-maintenance production capacity of Grosser Light Machines operating through the six commercial biorefining projects is approximately 310,000 tons of ethanol per year, with the ability to abate more than half a million tons of carbon per year that would otherwise enter our atmosphere.

Speaker Change: This landscape project was previously in the construction category and going forward, we will provide updates into Bryan except that from the launch of pig iron refining project pipeline.

Speaker Change: And you can't treat and nine huge Brian. Please go ahead, ma'am commissioning and startup.

Speaker Change: It's on track for production of steel in the second quarter of this year.

Speaker Change: The total installed production capacity crunch or license your chocolate each food or six commercial final refining projects is approximately 310000 tons broken up the year with the ability to abate more than a million tons of carbon per year that would otherwise endure.

Speaker Change: Yeah.

Jennifer Holmgren: The four commercial plants in China continue to perform and will continue to make progress on the ramp-up to full production capacity at Indian Oil's facility in India and our solar middle facility in Belgium. Our global services engineers are diligently working hand in hand with our customers to ramp up production, and we expect that successful full-scale operations will be achieved within 2024. Looking at the top of the funnel, we had nine net additions of qualified project opportunities into the first phase of the pipeline in the first quarter, and one net project addition into advanced engineering from early stage engineering.

Speaker Change: The full commercial plants in China continue to perform and we will continue to make progress on the ramp up to full production capacity.

Speaker Change: Facility in India, and our sugar mill facility in Belgium.

Speaker Change: Our global service, you're seeing didn't understand diligently working have been handling our customers to ramp up production and we expect that successful full scale operations will be achieved within 2024.

Speaker Change: Looking at the top of the funnel, we had nine net additions of qualified project opportunities into the first phase of the pipeline.

Speaker Change: In the first quarter and one net addition into advanced engineering early stage engineering.

Jennifer Holmgren: As mentioned during our last update, we continue to expect that several projects in advanced engineering will achieve final investment decisions and move into the construction phase in the second half of this year. As a result, we expect revenues from the sale of equipment packages to materialize with respect to those projects along the same timeline. In addition to the significant depth of our commercial licensing pipeline, we're working with our infrastructure capital partner, Brookfield, to transfer the first project under our partnership to them this year, while ramping up the development of additional project opportunities.

Speaker Change: As mentioned during our last update we continue to expect several projects in advancing Jimmy and will achieve final investment decision and move into the construction phase in the second half for this year.

Speaker Change: As a result, we expect revenues from the sort of equipment packages to materialize with respect to those projects along the same guideline.

Speaker Change: In addition to the significant step of our commercial licensing pipeline group working with infrastructure capital partner Brookfield to trend through the first project under our partnership to them this year.

Speaker Change: While ramping up development of additional project opportunities.

Jennifer Holmgren: Additionally, we're working closely with our joint venture partner, Olajan, on developing and financing a pipeline of project opportunities in Saudi Arabia and the broader Middle East. In our Carbon Smart business, we continue to negotiate off-take supply agreements with our partners in China and Europe to satisfy the growing Carbon Smart demand in 2024 and 2025. We're focused on sales into the global chemicals market with revenue in the first quarter from several of these customers.

Speaker Change: Additionally, we are working closely with our joint venture partner.

Speaker Change: Developing in finance unit pipeline of project opportunities in Saudi Arabia, and the private level.

Speaker Change: In our carbon pitch mix, we continue to negotiate offtake supply agreements with our partners from China.

Speaker Change: <unk> filed a growing fiber cement demand in 2024 and 2025.

Jennifer Holmgren: We're focused on sales into the global chemicals market with revenue in the first quarter from several of these customers.

Jennifer Holmgren: We also remain optimistic about revenue upside for carbon smart ethanol in the low carbon fuels markets, specifically in the EU, once regulations are settled by the European Commission on how these first of their fine fuels are treated.

Speaker Change: We also remain optimistic about revenue upside for coffee and snack ethanol and the low carbon fuel markets specifically in the new one short durations have shoveled, the European Commission and how each first of their kind fields.

Speaker Change: Good.

Jennifer Holmgren: Positive technical guidance continues to be provided by the Commission, but it is not yet final, with the latest expectations suggesting that the European Commission will approve the certifying body this summer. Lastly, before turning it over to Jeff, I wanted to share a brief update on the reorganization initiatives announced last quarter. We've already begun to see operational transparency and efficiencies bear fruit, with a more streamlined executive team driving greater accountability and enhanced execution throughout the company.

Speaker Change: Patrick just technical guidance continues to be provided by the commission, but it is not yet the time with the latest expectations you can think of the European Commission.

Speaker Change: Proof certifying bodies this summer.

Jennifer Holmgren: Lastly, before turning it over to Jeff I wanted to share a brief update on the organization initiatives. This time last quarter.

Jennifer Holmgren: We've already begun to see the operation and Spanish inefficiencies being true with a more streamlined executive team driving greater accountability and enhanced execution throughout the company.

Jennifer Holmgren: The reorganization and workgroup prioritizations announced earlier this year are now fully underway, with the estimated cost savings associated with them now beginning to materialize. We continue to expect the annualized operating expense savings of $5.3 million to be realized over the course of this year. Additionally, we continue to expect to end the year with a global headcount at or below 400 people, which is below the total headcount at year-end 2023. I'll turn the call over to Jeff to provide details on our financial performance.

Jennifer Holmgren: The reorganization and work with payer organizations announced earlier. This year are now fully underway with the estimated cost savings associated now beginning to materialize.

We continue to expect annualized operating expense savings of $5 $3 million to be realized over the course of this year.

Jeff: Additionally, we continue to expect during the year with our global head Count added 400 people, which is below the total head count at year end 2023.

Jeff: As a global team who are focused on commercial growth in our core businesses and delivering on the financial results, we've committed to the market with.

Jennifer Holmgren: That I will turn the call over to Josh to provide details on our financial performance and Jeff. Please go ahead.

Jeff Truckenberg: Thank you, Jennifer. Good morning, and thank you to everyone for joining us on the call. As seen on slide 10, total revenue for the first quarter of 2024 of $10.2 million grew by 6% year-over-year and was right in line with our forecasts and the guidance we laid out last quarter. Carbon Smart revenue of approximately $1 million, and JDA and Contract Research revenue of $4.3 million, both increased year-on-year in the first quarter. On the carbon smart side, sales from our recurring chemicals customers supported this growth. And on the JDA and contract research side, the performance was driven by several customers and government grants, which are typically multi-year in duration.

Jeff: Thank you Jennifer good morning, and thank you to everyone for joining us on the call.

Jeff Truckenberg: As seen on slide 10 total revenue for the first quarter 2024 and 14.

Jeff Truckenberg: $2 million grew by 6% year over year. It was right in line with our forecast and the guidance, we laid out last quarter.

Jeff Truckenberg: Carbon start revenue of approximately $1 billion in JDM and contract research revenue of $4 3 million both grew year on year in the first quarter.

Jeff Truckenberg: Carbon spot side.

Jeff Truckenberg: <unk> coal chemical Costello supported this growth another J D. H contract research side performance was driven by several customers, which are typically multiyear in duration.

Jeff Truckenberg: Biorefining revenue declined year-over-year in the first quarter to $5 million, but it saw strong contributions from engineering services revenue across projects in both early and advanced stage engineering, as well as startup services associated with the ArcelorMittal facility in Belgium. Importantly, the decline in biorefining revenue was anticipated and is attributed to the uneven nature of revenues earned in the early development stages of each project, which currently dominates our biorefining Notably, we expect the composition of our revenue mix to become increasingly smooth and consistent as we continue to add project opportunities and more projects come online, building recurring revenue as a larger percentage of our overall revenue mix.

Jeff Truckenberg: By refining revenue declined year over year in the first quarter to $5 million, but saw strong contributions from engineering services revenue across projects sulfur released an advanced stage engineering as well as some startup services associated with the Arcelormittal facility in Belgium is.

Jeff Truckenberg: Importantly.

Jeff Truckenberg: Higher year on year and by our oil revenue was anticipated and is attributed to the uneven nature of revenues earned in the early development stages. Each project is currently dominated by refining Rodriguez.

Jeff Truckenberg: Notably we expect the composition of our revenue mix will become increasingly smooth and consistent as we can.

Jeff Truckenberg: Continued at project opportunities and more projects come online building recurring revenue is a large percentage of our overall revenue mix.

Jeff Truckenberg: With respect to margins during the quarter, our focus on revenue quality continued during the first quarter, driving gross profit improvement of 87% year-on-year to $3.5 million. This improvement reflects a higher mix of high-margin engineering services work and JDA contracts, resulting in first quarter gross margins of 34%, up approximately 570 basis points over the full year 2023 gross margin. As mentioned previously, we continue to expect gross margin to be in the mid to high 20s for the full year 2024.

Jeff Truckenberg: With respect to margins during the quarter our focus on revenue quality continued during the first quarter driving gross profit improvement of 87% year on year to $3 5 million.

Jeff Truckenberg: This improvement reflects a higher mix of high margin engineering services work and JJ contracts, resulting in first quarter gross margins of 34% up approximately 570 basis points over the full year 2023 gross margin.

Jeff Truckenberg: As mentioned previously we continue to expect gross margin to be in the mid to high <unk> for the full year 2024.

Jeff Truckenberg: On the expense side, operating expenses declined 14% year-on-year in the first quarter, coming in at $29.6 million, largely reflective of the one-time expenses in the first quarter of 2023 associated with our GoPublic transaction. However, sequentially, operating expenses increased due to slightly higher personnel expenses in research and development in SG&A from reduced bonuses in Q4 2023 and Q1 2024 severance costs associated with the previously announced reorganiz As Jennifer noted, the Executive Reorganization that we announced last quarter is complete, and the newly reorganized functions are exploring and implementing efficiency and accountability improvements throughout the organization.

Jeff Truckenberg: On the expense side operating expenses declined 14% year on year in the first quarter coming in at $29 $6 million largely reflective of the one time expenses in the first quarter 2023 associated with our go public transaction.

Jeff Truckenberg: Sequentially operating expenses increased due to slightly higher personnel expense and research and development and SG&A.

Jeff Truckenberg: Joost bonuses in Q4 2012 free in Q1 2020 for severance costs associated with the previously announced reorganization.

Jeff Truckenberg: As Jennifer noted the executive reorganization that we announced last quarter or so.

Jeff Truckenberg: Our newly reorganized functions are exploring and implementing efficiency and accountability improvements throughout the organization.

Jeff Truckenberg: The associated cost savings initiatives are also well underway and on track to deliver the previously estimated full year cost reductions. CapEx spent during the first quarter 2024 totaled 1.3 million, and we continue to project CapEx for the full year 2024 to be consistent with or below our CapEx for the prior couple of years. Turning to Adjusted EBITDA and cash burn for the quarter, as expected, our Adjusted EBITDA loss increased quarter-on-quarter in the first quarter to $22.1 million, largely as a result of lower Q1 revenue and gross profit as compared to the fourth quarter of 2023.

Jeff Truckenberg: So the cost savings initiatives are also well underway and on track to deliver the previously estimated full year cost reductions.

Jeff Truckenberg: Capex spending during the first quarter 2024 totaled $1 3 million.

Jeff Truckenberg: Can you project Capex for full year 2024 to be consistent with or below our capex for the prior couple of years.

Jeff Truckenberg: Turning to adjusted EBITDA and cash flow for the quarter as expected our adjusted EBITDA loss increased quarter on quarter in the first quarter to $22 $1 million.

Jeff Truckenberg: Largely as a result of the lower Q1 revenue and gross profit as compared to the fourth quarter 2023.

Jeff Truckenberg: Our total cash burn in the quarter was $29.2 million, which was up quarter over quarter as a result of the lower revenue and larger adjusted EBITDA loss. It was also materially impacted by a number of large annual payments, including 2023 incentive compensation, 2024 insurance premiums, and others that are expensed throughout the year but are paid in Q1. Importantly, we also expected to invoice and receive a multi-million dollar payment in the quarter associated with one of our government contracts, but some administrative contracting issues spanned the end of the quarter, resulting in a simple delay in this payment.

Jeff Truckenberg: Our total cash burn in the quarter was $29 2 million, which was up quarter over quarter. As a result of the lower revenue and larger adjusted EBITDA loss was also materially impacted by a number of large annual payments, including 2023 incentive compensation 2020 for insurance premiums and others that are expense throughout the year for paid in Q1.

Jeff Truckenberg: Importantly, we also expect to invoice and receive a multimillion dollar payment in the quarter associated with one of our MRO contracts. Some administrative contracting issues span the end of the quarter, resulting in a simple delay the statement.

Jeff Truckenberg: As a result, we do not believe that this burn rate is indicative of our average quarterly burn rate for the full year 2024. Turning to the balance sheet, as of March 31st, 2024, we had $92.3 million of cash on hand, including cash, restricted cash, and investments. And any quarter with more than $92 million of cash on hand, we remain confident that we have the financial flexibility to execute our plan and deliver on our primary objectives outlined for the full year 2024.

Jeff Truckenberg: As a result, we do not believe that this run rate is indicative of our average quarterly burn rate for the full year 'twenty four.

Jeff Truckenberg: Turning to the balance sheet as of March 31, 2024.

Jeff Truckenberg: The $2 $3 million of cash on hand, including cash restricted cash and vessels.

Jeff Truckenberg: And any quarter with more than $92 million of cash on hand.

Jeff Truckenberg: Do we have the financial flexibility to execute our plan and deliver on our primary objectives outlined for the full year 2024.

Jeff Truckenberg: With that said, we're also announcing today the filing with the SEC of a registration statement on Form S3 that includes a prospectus offering for an at-the-market or ATM issuance of up to $100 million of the company's common shares. As we recently passed the one-year anniversary of the completion of our business combination and became eligible to do so, we believe that having a universal shelf S3 on file is good corporate housekeeping, and the ATM provides us with a tool to opportunistically access additional capital, even though we have no plans at present to utilize it.

Jeff Truckenberg: With that said, we're also announcing today the filing with the SEC a registration statement on form S. Three and includes a prospectus offering for an aftermarket or ATM issuance to $100 million of the company's common shares.

Jeff Truckenberg: We recently passed the one year anniversary of the completion of a business combination.

Jeff Truckenberg: And became eligible to do so we believe that having a universal shelf S. Three filed as good corporate housekeeping and the ATM provides us the tool to Opportunistically access additional capital, even though we have no plans at present to utilize it.

Jeff Truckenberg: While we believe we have sufficient liquidity to execute on our near-term objectives and obligations, we will also continue to opportunistically and patiently explore other strategic financing alternatives to ensure we are best positioned to achieve our longer-term growth objectives. Pursuing these additional financing options enables us to maximize potential opportunities that could further supplement our financial flexibility as we continue to explore strategic opportunities to accelerate our growth and path to profitability. Looking ahead to the second quarter and the rest of the year, we continue to anticipate a strong quarter-over-quarter revenue ramp, with an expected 20 to 40 percent quarter-over-quarter growth in Q2 and a very strong back half of the year, underscored by the expectation of moving multiple projects into later stages of development and into construction.

Jeff Truckenberg: While we believe we have sufficient liquidity to execute on our near term objectives obligations. We will also continue to opportunistically and patiently explore other strategic financing alternatives to ensure we are best positioned to achieve our longer term growth objectives pursuing additional financing options enables us to maximize potential opportunities to further supplement our finance.

Jeff Truckenberg: Our flexibility as we continue to explore strategic opportunities to accelerate our growth and profitability.

Jeff Truckenberg: Looking ahead to the second quarter and the rest of the year. We can see do you anticipate a strong quarter over quarter revenue ramp.

Jeff Truckenberg: Expected, 20% to 40% quarter over quarter growth in Q2.

Jeff Truckenberg: Very strong back half of the year underscored by the expectation of moving multiple projects in the later stages of development and construction.

Jeff Truckenberg: As Jennifer mentioned earlier, as outlined on slide 11, we are reiterating our full year 2024 guidance of $90 to $105 million in total revenue, with full year growth across all components of the business, and an obviously significant back-end weighted shift to the year, as well as negative 65 to negative 55 million in adjusted EBITDA. We anticipate the biorefining revenue growth will come from ongoing and new engineering services revenue as well as the sale of equipment packages related to several projects that we expect to achieve final investment decisions on and proceed to the construction phase in 2024.

Jeff Truckenberg: As Jennifer mentioned earlier and as outlined on slide 11, we are reiterating our full year 2024 guidance of $90 million to $105 million total revenue full year growth across all components of the business and obviously significant back end weighted shape for the year as.

Jeff Truckenberg: Fire refining will also be bolstered in 2024 by the anticipated kickoff of Project Secure, our DOE-funded project with Technique for the decarbonization of ethylene production, and the multiple opportunities that we are working on to address the growing demand for SAF, including the projects that we are co-developing with LanzaJet and the broader need for waste-based ethanol as an enabler of alcohol-to-jet growth globally. Finally, we continue to anticipate moderate year-on-year growth in our carbon spark business and our JDA and contract research business. With that, I'll turn the call back over to Jennifer for some closing remarks before we open the call for Q&A. Jennifer?

Jennifer Holmgren: As well as negative 65 days to 55 million of adjusted EBITDA.

Jennifer Holmgren: Thank you, Jeff. Our performance is not just a set of numbers. It's a tangible manifestation of progress in a field where every small victory has a significant impact. We are at the vanguard of an industry that is as challenging as it is essential. The opportunities before us are not only progressing but are the cornerstone of creating a new carbon economy.

Jennifer Holmgren: You shouldn't accomplishing a field, where every small victory has a significant impact.

Jennifer Holmgren: We are at the Vanguard of an industry that is as challenging as it is essentially the opportunities before us are modestly progressing but are the cornerstone and creating a new carbon economy.

Operator: This quarter was a good quarter, and I want to close by coming back to the five key takeaways I outlined at the outset of the call. First, we delivered financial results for the first quarter right in line with our guidance provided last quarter. Second, Project Secure was a huge win, and we're excited about the project and the replicability of this technology integration. Third, SAF continues to be an enormous demand pool for waste-based ethanol, and we are well positioned in this massive sector.

Operator: Quarter was a good quarter and I want to close with coming back to the five key takeaways that I outlined at the outset of the call.

Operator: First we delivered financial results for the first quarter right in line with our guidance provided last quarter.

Operator: Patrick secure was a huge win and we're excited about the project on the Replicability of this technology integration.

Operator: <unk> continues to be an enormous demand pull through rates based ethanol and we are well positioned to dismiss acceptance for.

Operator: Fourth, our commercial project pipeline is growing and progressing. And finally, a reiteration of our full-year 2024 Financial and Operating Guidance. Thank you for your continued trust and support. Together, we're not simply participants in this economy. We are the architects and builders laying down the foundations for a sustainable future. Operator, we can now open the lines for Q&A, please.

Operator: Our commercial project pipeline is growing and progressing and finally, a reiteration of our full year 2024 financial and operating guidance.

Operator: Thank you for your continued trust and support.

Operator: Get it we're not shouldn't protecting she'd been condition economy.

Operator: Nixon builders laying down the foundations for sustainable future.

Speaker Change: Operator, we can now open the lines for Q&A. Please.

Operator: Certainly, Dr. Holmgren. Ladies and gentlemen, at this time, if you would like to ask a question, please press Star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing Star 2. Once again, that is Star 1 to ask a question. We go first this morning to Leo Mariani at Roth MKM.

Speaker Change: Certainly Dr Homegrown, ladies and gentlemen at this time, if you would like to ask a question. Please press star one on your telephone keypad, you may remove yourself from the queue at any time by pressing star to once again that is star one to ask a question. We go first this morning to Leo Mariani at Roth MTM.

Operator: Okay.

Leo Mariani: Hi guys, I wanted to just start off on the revenue side here. So if I heard you guys right, you're expecting roughly 20% revenue growth in 2Q versus 1Q here. If I kind of do the math, that gives me about 23% of your revenues in the first half, kind of relative to your midpoint of your full-year revenue guidance. Given that, can you just kind of elaborate a little bit on kind of what you expect to hit in the second half of 24, which obviously has to be a pretty big, significant ramp to hit?

Leo Mariani: Hi, guys wanted to just.

Leo Mariani: Start off on the revenue side here. So if I heard you guys right youre expecting roughly 20% revenue growth in <unk>.

Speaker Change: <unk> here.

Leo Mariani: Do the math that gives you about 23% of your revenues in the first half kind of relative to your midpoint of your full year revenue guidance.

Leo Mariani: Given that can you just kind of elaborate a little bit on kind of what you expect to hit in the second half of 'twenty, four which obviously have to be a big pretty big significant ramp to hit that guidance. This year.

Jeff Truckenberg: Yeah, good morning, Leo. And thanks for being on, as always.

Speaker Change: Yeah, Good morning, Leo and thanks for being on as always.

Jeff Truckenberg: So yeah, we quoted a little bit of a range for Q2, so 20% to 40% growth over the first quarter, just to reiterate that. So there is a little bit of variability there in Q2 as well as the timing of projects as well. But yeah, that does certainly suggest that we expect a large ramp-up in the back half of the year. We did reiterate our guidance, so we do expect to be earning those revenues in the back half. It's a function of a combination of things, including, you know, a variety of projects moving kind of into the FY, instruction stage as well as ongoing, as well as the other components of our revenues.

Speaker Change: So, yes, we put it a little bit of a range for Q2, so 20% to 40% growth over the first quarter just to reiterate that so there was a little bit of variability there too is.

Jeff Truckenberg: Timing of projects as well.

Jeff Truckenberg: But yes that does certainly suggests that we expect a large ramp in the back half of the year. We did reiterate our guidance that we do expect to mirror those revenues in the back half is a function of a combination of things including.

Jeff Truckenberg: The projects moving kind of into the year.

Jeff Truckenberg: Construction stage as well as ongoing Brian.

Jeff Truckenberg: Already moved into it.

Jeff Truckenberg: As well as the other components of our revenue.

Leo Mariani: Okay, and just on the cost side, I'm hoping you could help me out a little bit here. So, I'm looking at it just on kind of the key cash costs. If I take R&D plus cash G&A, it looks like that was up about 3.2 million in the first quarter versus the fourth quarter. I got the sense that there maybe were some one-time costs in there, some severance, and maybe some others. Could you quantify what the one-time costs are? And then is your expectation for those kinds of key costs to start dropping here in the second quarter?

Speaker Change: Okay and.

Speaker Change: And just on the cost side.

Leo Mariani: Hoping you could help me out a little bit here. So I'm looking at it just on kind of the key cash costs, if I take R&D plus cash G&A. It looks like that was up about $3 2 million in the first quarter versus the fourth quarter I got the sense that the revenues were some one time costs in there.

Leo Mariani: Some severance and maybe some others could you quantify what the onetime costs are.

Leo Mariani: And then as your expectation for those kind of key cost to start dropping here in the second quarter.

Jeff Truckenberg: Yeah, so there's two aspects of it. One was the SG&A and R&D costs, which are largely a function of personnel costs; these are headcount costs, largely. And so in Q4, they were slightly down, as you recall.

Leo Mariani: Yes.

Leo Mariani: So there's two aspects of it one it was either in the SG&A and R&D costs. These are largely a function of personnel costs due to head count costs, largely and so in Q4, they were slightly down as you recall, we cut back our bonuses in $2000 associated with 2023, so that resulted in a <unk>.

Jeff Truckenberg: We cut back our bonuses associated with 2023, so that resulted in a reduction in cost in Q4 of last year. However, normalized for...

Jeff Truckenberg: Reduction in cost in Q4 of last year normalized for Q1, it's slightly up as.

Jeff Truckenberg: You won; it's slightly up.

Jeff Truckenberg: As well, there were, as you noted, some one-time costs and severance costs associated with the reorganization that we announced.

Jeff Truckenberg: As well as there were as you noted some one time costs and severance costs associated with the reorganization that we announced in Q1.

Jeff Truckenberg: I'm not going to get into the specifics of the severance pay, but we do expect...

Jeff Truckenberg: I'm not going to get into the specifics of the severance costs, but we do expect those to be one time in.

Jeff Truckenberg: but we do expect those to be one time only, and that will be built that will trail off the rest of the year.

Jeff Truckenberg: It will be built that will trail off Peter.

Leo Mariani: Okay, so you're saying that your cash costs are going to start going down here in the second quarter?

Speaker Change: Okay, So youre, saying that youre kind of cash cost there and start going down here in the second quarter we.

Jeff Truckenberg: We expect the cash costs for those light items to be reduced by a quarter.

Leo Mariani: We expect the cash costs for those line items to reduce.

Jeff Truckenberg: Sure.

Leo Mariani: Okay, that's helpful. Thanks, guys.

Speaker Change: Okay. That's helpful. Thanks, guys.

Speaker Change: Thanks Liam.

Operator: We'll go next to Jason Gabelman of TD Cowen.

Leo Mariani: We'll go next now to Jason <unk> of TD Cowen.

Jason Gabelman: Yeah, morning. Thanks for taking my question. I wanted to ask about the project pipeline and some growth that you mentioned, nine projects added to that pipeline. I was wondering if you could give us some flavor for what those projects were and if you expect to maintain that kind of pace in terms of projects being added to the pipeline, or that will be lumpy again as well, I should say, quarter to quarter. Thanks.

Jason Gabelman: Yeah, Hey, good morning, Thanks for taking my questions.

Jason Gabelman: Yeah.

Jason Gabelman: Hi.

Jason Gabelman: I wanted to ask about the project pipeline and some growth that you mentioned nine projects added to that pipeline I was wondering if you could give us some flavor for what those projects were and if you expect to maintain that kind of pace in terms of projects being added to the pipeline.

Jason Gabelman: Or that will be lumpy again.

Jason Gabelman: As well I should say quarter to quarter.

Jennifer Holmgren: Let me address that. [inaudible] You know the project pipeline will be a little lumpy initially, just because it's early stage for us. However, we are adding projects both at the top of the funnel and getting projects through to FID. So we do expect to see construction this year. The projects that are being added to the front of the funnel, however, are too small for me to discuss the specific partners because of the fact that a lot of those are still not named partners.

Speaker Change: Let me address that.

Speaker Change: You bet.

Jennifer Holmgren: No the present pipeline just because it's early stage for us.

Jennifer Holmgren: Maybe a little lumpy in nature.

Jennifer Holmgren: We are adding probably speaks both to the top of the funnel and getting projects.

Jennifer Holmgren: S I D.

Jennifer Holmgren: So we do expect to see construction. This year the projects that are being added to the front of the funnel. However, I'd cut for me to discuss the specific partners because of the fact that a lot of those are still not named partners.

Jennifer Holmgren: However, we are also starting to see interest from companies to start replicating projects. You know, we've done that in China. We have four projects with the same partner, and we're starting to see the filling of the funnel with partnerships related to companies that are already building plans.

Jennifer Holmgren: However.

Jennifer Holmgren: Starting to also see Inc.

Jennifer Holmgren: Interest from company to start replicating projects, we've done that in China, we have four.

Jennifer Holmgren: With the same partner and we're starting to see filling up the funnel with partnerships.

Jennifer Holmgren: Weighted to come.

Jennifer Holmgren: Companies that are already building plans.

Speaker Change: Got it.

Jason Gabelman: And my second question is just on the earnings outlook. I think you had previously mentioned breakeven EBITDA in 2025. Is that still your expectation, and any other color around that in terms of growth from 2024 to 2025?

Jennifer Holmgren: Thanks, and my second question is just on the earnings outlook. I think you had previously mentioned breakeven breakeven EBITDA in 2025 is that still your expectations.

Jason Gabelman: And any other color around that in terms of growth from 24 to 25 banks.

Jeff Truckenberg: Hey Jason, thanks for the question and for being on. You know, as you know, we haven't provided any guidance beyond 2024. You know, specifically at this point in time, we do think our path to profitability is a function of growth. And, you know, our expectation is that the company will continue to grow significantly year over year. And as we grow the top line and the associated gross profit, you know, that will drive our ability to get to profitability. But again, we haven't been specific about our guidance for anything beyond 2024.

Speaker Change: Hey, Jason Thanks for the question and for being on.

Jeff Truckenberg: As you know we haven't provided any guidance beyond 2024, specifically at this point in time, we do think our path to profitability is a function of growth.

Jeff Truckenberg: Our expectation.

Jeff Truckenberg: The company will continue to grow significantly year over year and as we grow the top line and the associated gross profit that will drive our ability to get to profitability, but again, we haven't been specific about our guidance for anything beyond 2020.

Jeff Truckenberg: Okay.

Jason Gabelman: Alright, great. Thanks for the answers.

Speaker Change: Alright, great. Thanks for the answers.

Jason Gabelman: Okay.

Operator: We'll go next to Thomas Merrick with Jannie Montgomery.

Jason Gabelman: We'll go next now to Thomas <unk> with Janney Montgomery.

Thomas Merrick: Good morning. Thanks for the time and taking the questions. A couple for me on the staff market.

Thomas Merrick: Good morning, Thanks for the time and taking the questions a couple for me on the SaaS market.

Thomas Merrick: Firstly, what's your assessment of the current staff feedstocks in terms of supply, demand, and the really cost to use them? And then how do you expect that to change in the coming quarters?

Thomas Merrick: Firstly.

Thomas Merrick: What's your assessment of the current SaaS feedstocks in terms of supply demand doesn't really cost to use that and then how do you expect that to change in the coming quarters.

Thomas Merrick: One on <unk>.

Jennifer Holmgren: Just curious about your thoughts and reactions to the recent GREET model, if anything stood out to you there, and then one follow-up on Brookfield after that.

Thomas Merrick: Just curious your thoughts and reactions to the recent greet model if anything stood out to you there and then one follow up on Brookfield after that.

Jennifer Holmgren: Sure, let me start. And thank you for the question, Thomas. On the SAS market, we continue to see demand for waste-based feedstocks as a key priority. I think you saw the UK government incentives and targets, and they really grow in terms of staff demand, but they also disproportionately grow the non-HEFA, in other words, the non-oil based fuels and greases demand vector. So you're really starting to see people talk about shifting to waste demand, waste feedstocks. The fact is that we're very well positioned for that since all we use are waste feedstocks. However, I would also say that, generally, these types of feedstocks can be more expensive.

Speaker Change: Sure Let me, let me start and thank you for the question Thomas.

Jennifer Holmgren: On the soft market.

Jennifer Holmgren: We continue to see demand for race face feedstocks ours to.

Jennifer Holmgren: A key priority I think you saw the UK.

Jennifer Holmgren: <unk>.

Jennifer Holmgren: Government.

Jennifer Holmgren: <unk> targets and they really grow in terms of SaaS demand, but also b.

Jennifer Holmgren: Disproportionally grow the non behalf.

Jennifer Holmgren: The words, the non oils fats and greases demand factors, so you're really starting to see people talk about shifting to rates demand.

Jennifer Holmgren: Waste feedstocks. The fact is that we're very well positioned and that in total we use the rates feedstock. However, I would also say that generally these types of feedstocks can be more expensive and so what's happening is.

Jennifer Holmgren: And so what's happening is that the mandates are slowly increasing the waste inputs so that they are creating a market without unduly pushing towards waste. So we're really excited about how that's happening, and it's happening globally. We're also excited about the fact that e-fuels, CO2 plus hydrogen, are also being incentivized disproportionately in favor of trying to create that industry. And as you know, coupling LanzaTech and LanzaJet using CO2 as feedstock is something we can do because e-fuels is a path for us to make ethanol.

Jennifer Holmgren: The mandates have slowly increasing.

Jennifer Holmgren: The waste inputs, so that they are creating a market without unduly pushing towards waste. So we're really excited about how that's happening and it's happening globally. We're also excited about the fact that he feels C O two plus hydrogen.

Jennifer Holmgren: Also being incentivized disproportionally in favor of trying to create that industry and as you know.

Jennifer Holmgren: Coupling land to take advantage of that you can see it through its feedstock is something we can do because if you use it as a path for us to make ethanol that ethanol that can be converted to SaaS to get so we're seeing more and more incentives.

Jennifer Holmgren: That ethanol then can be converted to SAF by LanzaJet. So we're seeing more and more incentives, but we also find them to be quite measured in that governments are being realistic and saying, when are these things going to be ready? And they're not ready.

Jennifer Holmgren: But we also find them to be quite amazing.

Jennifer Holmgren: In that.

Jennifer Holmgren: Governments have been realistic in saying, we're not these things going to be ready.

Jennifer Holmgren: They're not in the market today, but they will be in the next few years, or at least that's our intention. And that's what our project portfolio would say. The second thing I would say to your question, the second question we asked was the GLEAP model. And as you know, what the GLEAP model use has done, the White House has sent out guidance around that, and the bottom line is it enables corn ethanol, if certain measures are utilized to reduce the carbon intensity of corn ethanol, to qualify and to be used for the production of sustainable aviation fuel.

Jennifer Holmgren: And Theyre not ready go not in the market today, but they will be in the next few years at least that kind of intention and that's like a project portfolio would change the second thing I would say to your question. The second question you asked with greet model and as you know what the Bleep model use has done the whitehouse hen's egg.

Jennifer Holmgren: Ken.

Jennifer Holmgren: So that's in and around that and bottom line needs that enables corn ethanol.

Jennifer Holmgren: Certain measures is utilized to reduce the carbon intensity of corn ethanol.

Jennifer Holmgren: To qualify.

Jennifer Holmgren: So we think it's a big win, both for corn producers here in the United States and for corn ethanol producers here in the United States, because it shows them a path by which they can also participate in a market that was difficult for them to participate in because there was no clear picture of how they could reduce their carbon emissions. And so the White House basically has shown them a path that enables them to participate. Hopefully, that addresses your questions. I think you also wanted to ask about Brookfield, so I'll pass it back to you.

Jennifer Holmgren: To be.

Jennifer Holmgren: <unk> used for the production of sustainable aviation fuel.

Jennifer Holmgren: We think it's a big win both for.

Jennifer Holmgren: Corn producers here in the United States corn ethanol producers here in the United States because it shows in the past.

Jennifer Holmgren: Which they can also participate in a market that was difficult for them to participate because there was no clear.

Jennifer Holmgren: Picture.

Jennifer Holmgren: On on how they could reduce their carbon emissions into the Whitehouse basically has shown a path that enables them to participate.

Speaker Change: Hopefully that addresses your questions. I think you also wanted to ask about Brookfield pass it back to you.

Thomas Merrick: You on Brookfield, specifically just thinking about

Speaker Change: Yes. Thank you.

Speaker Change: On Brookfield, specifically, just thinking about the unlock of future projects and I'm wondering if you could comment on the potential for additional project debt.

Jennifer Holmgren: Thank you, after the first one gets transferred. Right. So we do have a very robust pipeline.

Speaker Change: After the first one gets transferred.

Jennifer Holmgren: Right, so we do have a very robust pipeline of projects that can go into our Brookfield pipeline, if you will. But what we are doing is focusing on the very first one for a reason, right?

Speaker Change: Right. So that we do have a very robust pipeline of I think that can go into.

Jennifer Holmgren: Into our Brookfield pipeline. If you will what we are doing is focusing on the very first one for a reason right. This will be our first project.

Jennifer Holmgren: This will be our first project, and defining all the parameters that we need to define to transfer the project is something we're doing lockstep, and then we'll work very closely with them, and we understand each other on what makes a good project and what it is that they need to see for them to pick it up. So while we have a robust pipeline that we are moving along on certain parameters like getting gas agreements and other such things, we have focused on only one project.

Jennifer Holmgren: And the mining all the parameters that we need to define to transfer. The project is something we're doing lockstep in dental work very closely with them and understanding each other on what makes a good project and what is it that they need to see for them to pick that up so while we have a robust pipeline that we.

Jennifer Holmgren: Moving along in certain parameters like getting gas agreement and other such things we have focused in on the one project.

Jennifer Holmgren: One of them, so that we're clear on how to transfer. The other thing that I think is quite important is that, with the Brookfield pipeline, we are able to look at projects in North America more and more, as well as Europe and the UK. But we're starting to see a lot of interest in North America, so we're super excited about using the Brookfield approach and partnership to enable those projects to move forward.

Jennifer Holmgren: One of them so that we're clear on how to turn to the other thing that I think it's quite important.

Jennifer Holmgren: Is that with the Brookfield pipeline.

Jennifer Holmgren: We are able to look at projects in North America, more and more and as well as Europe and the U K, but we're starting to see a lot of interest in North America. So we're super excited about using the Brookfield approach in partnership to enable those projects to move forward.

Speaker Change: Thanks, that's it for me.

Thomas Merrick: Thank you. We go next to Jeffrey Campbell of Seaport Research Partners.

Jennifer Holmgren: Thank you. We'll go next now to Jeffrey Campbell of Seaport Research partners.

Operator: Good morning and congratulations on all the positive developments. I wanted to ask a few questions about Project Secure. First of all, I think you gave us an ethylene output number for the project, but I was wondering what the likely ethanol output would be from a plant costing $400 million to construct.

Jeffrey Campbell: Good morning, and congratulations on all the positive developments I wanted to ask a few questions that projects secure first of all.

Operator: You gave us an ethylene output number for the project, but I was wondering.

Operator: What would be the likely ethanol output from the plant costs and 400 million to construct.

Jeffrey Campbell: So the output of the plant is sized to that ethylene production number. This is meant to be an ethylene producer. So all the ethanol will go straight into the ethanol to ethylene plant. The yield losses are less than 15 percent. So basically, the ethanol number is very close to the ethylene output number.

Operator: So the output of the plant the size to better ethylene production numbers. This is meant to be an ethylene producers all the ethanol will go straight into the ethanol ethylene plant.

Jeffrey Campbell: Maybe I should rephrase the question. What I'm trying to understand is how the plant for this project compared to your typical 50,000.

Jeffrey Campbell: <unk>.

Jeffrey Campbell: The yield losses are less than 15% so basically the ethanol.

Jeffrey Campbell: Number is very close to the ethylene output number.

Speaker Change: Maybe I should rephrase the question well, what I'm trying to understand is.

Speaker Change: How does the.

Jeffrey Campbell: Atlanta Tech plant.

Jeffrey Campbell: Project compared to your typical 50000.

Jennifer Holmgren: Yeah, thank you for the question. It's 50,000 tons per year. This is an ethanol plant of the size 50,000 tons per year, and all of the ethanol will go straight to ethylene.

Speaker Change: Yeah. Thank you for the question, it's 50000 tons per year basis, and ethanol plant at the site 50000 times per year and all of the ethanol would go straight to ethylene yeah.

Jeffrey Campbell: And are you and TechNip looking to construct projects of approximately that size going forward, or can smaller units be profitable?

Jennifer Holmgren: And are you doing Greg now looking to construct projects of approximately that size going forward or in smaller units be profitable.

Jennifer Holmgren: So we can go both smaller and larger, and what we're starting to do is we're going to have standard sizes. So the 50,000 is one of our standard sizes, as you know, Jeff, because we use that in multiple of our projects. We also have one that is approximately half of that size that we're now using as a standard, and then we can also go bigger. So, what we are trying to do now, especially in this partnership with Technique and more and more as a company, is create standard units rather than bespoke units because that will allow us to do the engineering package and work with EPCs in a way that goes much, much faster than trying to customize the size for every opportunity. So if that is your question, that is exactly what we're doing, and that 50k is there for that reason.

Speaker Change: So we can go both smaller and larger and what we're starting to do it.

Jennifer Holmgren: Is would have been had standard sizes. So the 50000 is one of our standard sizes as you know, Jeff because we use that in multiple of our projects. We also had one approximately half of that size that we're now using is expanding and then we can also grow bigger.

Jennifer Holmgren: So what we are trying to do now, especially in this partnership with technique and more and more as the company is create standard units rather than bespoke unit because that will allow us to do the engineering package and what he sees in the wake up those who much much faster than trying to customize sites.

Jennifer Holmgren: At Lee opportunity. So if that is your question that is exactly what we're doing in that 50 K stands for that region.

Jeffrey Campbell: Now, that's a great answer, and I appreciate the color. I'm moving away from bespoke.

Jennifer Holmgren: Yes.

Jeff Truckenberg: That's a great answer and I appreciate the color on moving away from bespoke.

Jeffrey Campbell: It sounded, Jeff's remarks, if I heard them correctly, sounded like there might actually be some revenues from Project Secure at some point in 2024. Was that correct? And if so, is that included in current guidance, or would this be in addition to guidance?

Jeffrey Campbell: Its downturn Jeff's remarks, if I heard them correctly it sounded like there might be some revenues.

Jeffrey Campbell: From a project secures at some point in 2024 was that correct and if so is it included in current guidance or would this be introducing guidance.

Jeff Truckenberg: Thanks for the question, Jeff. And yes, we do anticipate that currently.

Jeffrey Campbell: Sure.

Speaker Change: Thanks for the question Jonathan Yes, we do anticipate currently that we will begin seeing revenues associated with project secure in the back half of the year.

Jeff Truckenberg: that we will be seeing revenues associated with Project Secure in the back half of the year. The timing associated with finalizing the administrative contracting associated with that is the piece that's the time uncertainty. We're working hand-in-hand with the DOE to accelerate that, but we do expect to start work in the back half of the year. That is included in our guidance, as again, as I mentioned earlier, we do have a probability

Jeff Truckenberg: Or is the timing associated with finalizing the administrative contracting associated with that is the piece. That's the time of uncertainty, we're working hand in hand with that.

Jeff Truckenberg: To accelerate that but we do expect to start work in the back half of the year that is included in our guidance.

Jeff Truckenberg: As again as I mentioned earlier, we do probability adjust our forecasts.

Jeff Truckenberg: So we expect that to leave us in the range.

Jeff Truckenberg: So we expect that to.

Jeff Truckenberg: Leave us in the range. So we're not adjusting our range at this point in time, but we do feel good about having additional committed revenues in that.

Jeffrey Campbell: Okay, and let me ask you one S-A-F question and I'll get off. I was just wondering how

Jeff Truckenberg: Okay.

Speaker Change: Let me ask one.

Speaker Change: Question, then I'll get off.

Speaker Change: I was just wondering how are you going to manage the allocations that allows the jet production.

Jeffrey Campbell: Once it starts coming to market in the second quarter 'twenty four and beyond.

Jennifer Holmgren: Actually, we have 10-year offtakes; LanzaJet has 10-year offtakes for all of that fuel, so the production is spoken for, and it will be managed in a way that's fair to each of the offtakers so that they can each get their share without one of them being first in line all the way through the year. But that is one important element of that plan, that the offtake is 100% spoken for.

Speaker Change: Actually we have 10 year off take for instance that has 10 year off takes for all looked at few so.

Jennifer Holmgren: The production is spoken for and informatics and await that CN is to each of the off takers. So it's not big.

Speaker Change: Can you just stick there sure.

Jennifer Holmgren: Without one of them being first in line all the way through the year. So.

Jennifer Holmgren: But that is.

Jennifer Holmgren: One important element of that plan to extent the offtake is 100% spoken for.

Speaker Change: Much appreciate it.

Jeffrey Campbell: Thank you. And just a quick reminder, ladies and gentlemen, Star 1, please, for any questions today. We go next to Steve Byrne of Bank of America.

Speaker Change: Thank you and just a quick reminder, ladies and gentlemen star one please for any questions today well go next to Steve Byrne of Bank of America.

Operator: Yes, thank you. I was just curious about the choice of an ethylene cracker for this project. Have you already done some pilot testing on the furnace flu gas at a cracker? I'm curious about that CO2 ratio and perhaps having it at a cracker. You've got the hydrogen coming off of the cracker, that could also help. But I guess, ultimately, do you have a view of where the variable costs could be for the production of this ethylene?

Steve Byrne: Yes. Thank you.

Operator: Just curious about the choice of an ethylene cracker.

Operator: For this project for cure or have you already done some pilot testing on.

Operator: The furnace flu a flu gas.

Operator: Cracker.

Operator: Curious about the Seo to C O two ratio.

Operator: Perhaps having it at a cracker you got the hydrogen coming off of the cracker of that.

Operator: Could also help but.

Operator: Ultimately do you have a view of where the where the variable costs could be for the production of this ethylene.

Steve Byrne: Let me start with that. Thank you for the question, Steve, and you have noted very well these points.

Speaker Change: Let me start with that thank you for the question.

Speaker Change: Steve and then daily well noted these points. So first of all that's right often petrochemical complex kits are a little bit long on hydrogen. So there is some hydrogen co production after the cracker that we could utilize in that integration.

Jennifer Holmgren: So first of all, that's right. Often petrochemical complexes are a little bit long on hydrogen, so there is some hydrogen co-production off of the cracker that we could utilize in that integration. The second thing that's worth noting in terms of variable cost is the fact that, at the end of the day, if we are to bring in hydrogen, which we intend to do, green hydrogen, into this, that will be the biggest driver of cost. And so the amount of green hydrogen will impact the cost of production. Why integrate them into a cracker?

Jennifer Holmgren: Second thing Thats worth, noting in terms of variable cost is the fact that at the end of the day, if we had to bring in hydrogen between 10 to do green hydrogen.

Jennifer Holmgren: In two days that will be the biggest driver of cost and so the amount of green hydrogen will impact the cost of production why integrate into a cracker.

Jennifer Holmgren: First of all, we know we can use that CO2 from that plant. We have looked at that gas very carefully, and the contaminants as well. So that is a very nice integration opportunity for us. But what's even more important is that the cracker itself is an integration opportunity.

Jennifer Holmgren: First of all we know we can use that C O two.

Jennifer Holmgren: From that plan, we've had we haven't looked at that gas very carefully the contaminants as well. So that is a very nice integration opportunity for X, but what's even more important as the cracker itself is an integration opportunity and the reason I say that is.

Jennifer Holmgren: And the reason I say that is, as you know, we've done quite a bit of work with Technique on ethanol to ethylene. Technique actually made the ethylene from our ethanol for the EVA, the foam for the work that we did with shoes. So we've already partnered with them on making ethylene for materials production. If you recall, Borealis then took that ethylene and made the EVA.

Jennifer Holmgren: As you know we spent quite a bit of work with me on ethanol directly technip actually made the ethylene.

Jennifer Holmgren: Our ethanol for the phone.

Jennifer Holmgren: Boom for the work that we did with unchanged. So we've already partnered with them on making ethylene for materials production.

Jennifer Holmgren: We called Borealis, and took that ethylene and the EPA that if you take a step even further back of casino with the hummingbird that ethanol ethylene from technique is also the first step in their sustainable aviation fuel production. So not only do we know that we can move the gas from the cracker, we note that our ethanol output.

Jennifer Holmgren: But if you take a step even further back, of course, you know that Hummingbird, the ethanol to ethylene converter from Technique, is also the first step in their sustainable aviation fuel production. So not only do we know that we can use the gas from the cracker, but we know that our ethanol output integrates very nicely with theirs. One of the gaps that we have had is that we have been producing ethylene at a different location than ethanol.

Jennifer Holmgren: For the integrated daily nicely with technique.

Jennifer Holmgren: One of the gaps that we have had is that.

Jennifer Holmgren: We have been producing the ethylene at a different location than the ethanol transporting ethanol.

Jennifer Holmgren: Transporting ethanol can add cost, and so our materials that are produced, there is a supply chain cost. By integrating directly into a cracker, there is no additional supply chain or movement of the ethanol cost, and so we believe this is how we can drive the cost of making materials from our CO2 derived ethanol, drive those costs down. And of course, the other beauty of integrating into a cracker is that most crackers in a petrochemical complex are integrated with further downstream production, whether it be polyethylene, MEG for polyester, EDA, or even PVC.

Jennifer Holmgren: Can add cost and so our materials to produce there is a supply chain costs by integrating directly into a cracker.

Jennifer Holmgren: There is no additional supply chain a movement of the ethanol cost and so we believe this is how we can drive the cost making materials.

Jennifer Holmgren: From our SER two derived ethanol.

Jennifer Holmgren: Drive those costs down and of course, the other beauty of integrating into a cracker. They spent most crackers in the petrochemical complex also in integrated with Turkey, the downstream production, whether it be polyethylene.

Jennifer Holmgren: T for polyester or EMEA, or even PDC and so for us that integration means that immediately our ethylene can be used in a mess balanced way with the rest of the ethylene produced in the cracker and.

Jennifer Holmgren: And so for us, that integration means that immediately, our ethylene can be used in a mass balanced way with the rest of the ethylene produced in the cracker. And as you can see, it's a beautiful way to start to both reduce the CO2 emissions of the cracker and also integrate it into the back end of the ethylene production. So we think this is just a beautiful, replicable way to get ourselves to a point where we produce materials from CO2.

Steve Byrne: Yeah, that makes sense. Thank you.

Steve Byrne: As you can see it's just a it's a beautiful way to start to both reduce the securitization for the cracker, but also.

Steve Byrne: Integrate into the backend into the ethylene production. So we think this is just a beautiful replicable way to get ourselves to a point, where we produce materials.

Steve Byrne: Some seem to.

Steve Byrne: I'd like to take a similar question on the off gas from an ethanol plant. You know, you mentioned a few minutes ago that the ethanol industry is trying to move down to more decarbonizing the ethanol and lowering the C.I. score.

Speaker Change: Yes, it makes sense. Thank you.

Speaker Change: I'd like to take a take a similar question on the off gas from an ethanol plant.

Speaker Change: You mentioned, a few minutes ago about the us.

Speaker Change: Not all industry is trying to move down to more decarbonising, the ethanol and lowering the Ci score I'm just wondering conceptually.

Jennifer Holmgren: I'm just wondering, conceptually, could the other approach to decarbonizing an ethanol plant be to use your technology on the ethanol flue gas? I guess I'm wondering whether or not, you know, there's very little C.O., and it's C.O. too, and thus, maybe more challenging. But you could build that at an ethanol plant and convert that into S.A.F.

Jennifer Holmgren: The other approach to Decarbonize and ethanol plan is to use your technology on the ethanol flue gas.

Jennifer Holmgren: I guess, I'm, I'm wondering whether or not.

Jennifer Holmgren: Theres very little C O N E C O two unless maybe it may be more challenging but.

Jennifer Holmgren: Could you could build out a methanol plant and convert that into S. A F.

Jennifer Holmgren: Absolutely, absolutely. To begin with, right, you are correct that we can use that CO2. Forty-five percent of the carbon that goes into an ethanol production facility, a sugar-based production facility, comes from CO2. You said it might be harder for us to convert it, and the difficulty is just making sure we have hydrogen available. But a lot of corn ethanol production or other ethanol production in the United States and the Midwest is surrounded literally by windmills, right?

Speaker Change: Absolutely, absolutely and and so.

Jennifer Holmgren: To begin with right.

Jennifer Holmgren: You are correct that we can use that field to 45% of the carbon at those into an ethanol production facilities sugar sugar based production facility comes off that too.

Jennifer Holmgren: You said it might be harder than Seo for us to convert it and the difficulty is just making sure we have hydrogen available at a lot of corn ethanol production or other ethanol production in the United States in the Midwest.

Jennifer Holmgren: It's surrounded literally by win win nodes right wind farms and so there is access to renewable power. There is access stands close to the production of hydrogen and so converting that to them.

Jennifer Holmgren: And so there is access to renewable power. There is, therefore, access to the production of hydrogen. And so converting that CO2 to ethanol is actually not any harder than converting CO to CO. The second thing I would say is, as there is more and more resistance and concern about pipelines to take CO2 and sequester it, that means that there is an awful lot of CO2 on the back end of ethanol plants that could be reutilized to make more ethanol, reducing the carbon intensity of the original ethanol and also enabling more So you hit the nail on the head.

Jennifer Holmgren: On to ethanol is is actually not any harder than converting scale.

Jennifer Holmgren: The second thing I would say is as there is more and more resistance and concern about pipelines.

Jennifer Holmgren: Hum.

Jennifer Holmgren: It could take two and sequester it that means that there is an awful lot of feel too on the backend of ethanol plant that could be utilized to make more ethanol, reducing the carbon intensity of.

Jennifer Holmgren: The original ethanol and also enabling more ethanol to be produce we can we can make fast. So you hit it right on the head the beauty of that tier two as well by the way is that it's biogenic and so globally. There are lot of drivers to reusing biogenic tier two versus necessarily Clarksville.

Jennifer Holmgren: The beauty of that CO2 as well, by the way, is that it's biogenic. And so globally, there are a lot of drivers for reusing biogenic CO2 versus necessarily fossil-derived CO2. So it's a massive win.

Jennifer Holmgren: C O two so so.

Jennifer Holmgren: It's a massive win we are really excited about.

Jennifer Holmgren: We are really excited about working with the industry to increase yield from the same input by utilizing CO2. And I hope that you see that as a theme in everything LanzaTech does. It's all about making more product from the same raw materials, whether it's CO2 on the back end of a corn ethanol plant or CO2 from a cracker. At the end of the day, our goal is to use every last bit of carbon to make products to reduce both carbon intensity and the amount of raw materials.

Jennifer Holmgren: Working with the industry to increase yield.

Jennifer Holmgren: The same input by utilizing here too and I hope that you see that as a theme to everything Memphis does it's all about making more product from the same raw materials, whether it turned back in to the corn ethanol plant, where they see or two from the cracker at the end of the day. Our goal is to use every last bit of carbon.

Jennifer Holmgren: To make products to reduce both carbon intensity, but also to reduce raw material inputs.

Steve Byrne: Very clear. Thank you. Thank you.

Speaker Change: Very clear thank you.

Steve Byrne: Yeah.

Operator: Thank you. And just a final reminder, ladies and gentlemen, star 1, please, for any further questions today. And ladies and gentlemen, it appears we have no further questions today. Dr. Holmgren, I'd like to turn things back to you, ma'am, for any closing questions.

Speaker Change: Thank you and just a final reminder, ladies and gentlemen star one please for any further questions today.

Dr. Holmgren: And ladies and gentlemen, it appears we have no further questions today, Dr Hungry and I'd like to turn things back to Ya man for any closing comments.

Dr. Holmgren: Thank you.

Jennifer Holmgren: It cannot be overstated that pioneering a new path in the energy sector is rife with complexities. We're altering the very paradigm of energy production and utilization, a task that is as formidable as it is inspiring. Infrastructure, perceptions, and, yes, legislation are yet to be fully aligned with the innovative process that we are championing.

Dr. Holmgren: It cannot be overstated pioneering a new path in the energy sector is rife with complexities.

Jennifer Holmgren: Altering the daily paradigm of energy production and utilization.

Jennifer Holmgren: That task.

Jennifer Holmgren: One notable as it is inspiring.

Jennifer Holmgren: At this juncture perceptions and yes legislation are yet to be fully aligned with the innovative process that we have.

Jennifer Holmgren: It's important to remember that movement creates friction, and as the first of a kind in this space, we've chosen to lean into that, into that friction because we believe that is where true progress is made. Thank you again for joining us. Thank you again for supporting us. Thank you again for giving us the opportunity to show what we can do with carbon that's already above ground.

Jennifer Holmgren: Championing its important to remember that movement creates friction and it's the first of a kind in this space, we've chosen to lean into that.

Jennifer Holmgren: Into that friction because we believe that is where to progress you've made.

Jennifer Holmgren: Thank you again for joining us. Thank you again for supporting US. Thank you again for giving us the opportunity to show what we can do with carbon that's already above ground wood waste carbon. Thank you.

Operator: Thank you, Dr. Holmgren. Ladies and gentlemen, that will conclude today's LanzaTech Global First Quarter 2024 earnings call. Again, thanks so much for joining us, and we wish you all a great day. Goodbye.

Speaker Change: Thank you, Dr. Homer and ladies and gentlemen that will conclude today's Atlanta Global first quarter 2024 earnings call again, thanks, so much for joining us today and we wish you all a great day Goodbye.

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