Q2 2024 LanzaTech Global Inc Earnings Call

August 8, 2024

Good morning, everyone, and welcome to LanzaTech Global, Inc. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode.

Operator: Inc., 2nd quarter, 2024, earnings conference call. At this time, all participants are in a listen-only mode. Later in the call, there will be a question-and-answer session. You may register to ask a question at any time by pressing the star-and-one on your telephone keypad. You may withdraw yourself from the queue by pressing star-and-two.

Later in the call there will be a question and answer session. You may register to ask a question at any time by pressing the star and 1 on your telephone keypad. You may withdraw yourself from the queue by pressing star and 2. Also, today's call is being recorded and I will be standing by if you should need any assistance.

Operator: Also, today's call is being recorded, and I will be standing by if you should need any assistance.

Kate Walsh: And now, at this time, I'll turn things over to Kate Walsh, Vice-President of Investor Relations and Tax. Please go ahead.

Kate Walsh: And now, at this time, I'll turn things over to Kate Walsh, Vice President of Investor Relations and Tax. Please go ahead.

Jennifer Holmgren: Good morning. And thank you for joining us for the LanzaTech Global Inc. 2nd quarter of 2024, earnings conference call.

Operator: Good morning, and thank you for joining us for the LanzaTech Global, Inc. second quarter of 2024 earnings conference call. On the call today, I am joined by our Board Chair and CEO, Dr. Jennifer Holmgren, and our CFO, Geoff Trukenbrod. Earlier this morning, we issued a press release with our second quarter of 2024 financial and operating results, as well as an investor presentation summarizing the company's performance and key operational highlights for the quarter.

Kate Walsh: Good morning, and thank you for joining us for the LanzaTech Global, Inc. second quarter of 2024 earnings conference call. On the call today, I am joined by our Board Chair and CEO, Dr. Jennifer Holmgren, and our CFO, Geoff Trukenbrod.

Speaker Change: Good morning, and thank you for joining us for the LanzaTech Global, Inc.'s second quarter of 2024 earnings conference call. On the call today, I am joined by our board chair and CEO , Dr. Jennifer Holmgren, and our CFO , Geoff Trukenbrod.

Kate Walsh: On the call today, I am joined by our board chair and CEO, Dr. Jennifer Holmgren, and our CFO, Geoff Trukenbrod. Earlier this morning, we issued a press release with our 2nd quarter of 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 ended June 30, 2024 filed today. Walsh, our press release and investor presentation can be found in the Investor Relations section of our website at www.lanzaTech.com.

Kate Walsh: Earlier this morning, we issued a press release with our second quarter of 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 ended June 30, 2024, filed today. Both our press release and 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 second quarter of 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 ten -q for the quarter ended june thirty two thousand and twenty-four filed today

Operator: Both our press release and investor presentation can be found in the investor relations section of our website at www.lanzatech.com. Forward-looking statements are statements describing our beliefs, goals, plans, strategies, expectations, projections, forecasts, and assumptions. Unless required by law, we assume no obligation to update publicly any forward-looking statements. Please see our earnings release and filings for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

Both our press release and investor presentation can be found in the investor relations section of our website at www.lanzatech.com.

Kate Walsh: Before we begin, I'd like to direct you to the claimers in the front of our investor presentation and remind you that today's call may include forward-looking statements. Any statement 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 current recent filings with the Securities and Exchange Commission, which identify the principal risks and uncertainties that could affect our business, prospects, and future results.

Kate Walsh: Before we begin, I'd like to direct you to the disclaimers in the front of our investor presentation and remind you that today's call may include forward-looking statements. Any statement 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.

Speaker Change: Before we begin, I'd like to direct you to the disclaimers in the front of our investor presentation and remind you that today's call may include forward-looking statements.

Kate Walsh: Any statement describing our beliefs, goals, plans, strategies, expectations, projections, forecasts, 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 ariety reasons many of which are beyond our control

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

Kate Walsh: Unless required by law, we assume no obligation to update publicly any forward-looking statements. In addition, we will be discussing and providing certain non-GAAP financial measures today, including adjusted EBITDA. Please see our earnings release and filings for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures. Today's call will begin with remarks from Jennifer providing an overview of our operations, our recent financial results, and our business outlook. Geoff will then review in greater detail our financial results and financial outlook. Jennifer will then conclude with a few closing remarks before we open up the line for questions. With that said, I'd like to turn the call over to Jennifer.

Kate Walsh: Unless required by law, we assume no obligation to update publicly any forward-looking statements.

Speaker Change: Unless required by law, we assume no obligation to update publicly any forward-looking statements.

Kate Walsh: In addition, we will be discussing and providing certain non-GAAP financial measures today, including adjusted EBITDA. Please see our earnings release in filing for a reconciliation of these non-GAAP financial measures through their most directly comparable GAAP measures.

Speaker Change: In addition, we will be discussing and providing certain non-GAAP financial measures today, including adjusted EBITDA. Please see our earnings release and filings for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.

Kate Walsh: Today's call will begin with remarks from Jennifer providing an overview of our operations, our recent financial results, and our business outlook. Jeff will then review in greater detail our financial results and financial outlook. Jennifer will then conclude with a few closing remarks before we open up the line for questions.

Speaker Change: Today's call will begin with remarks from Jennifer, providing an overview of our operations, our recent financial results, and our business outlook.

Jeff: jeff will then review greater detail our financial results and financial outlook

Jeff: Jennifer will then conclude with a few closing remarks before we open up the line for questions.

Jennifer Holmgren: With that, I'd like to turn the call already, Jennifer.

Jennifer Holmgren: Thank you, Kate, and thanks to everybody joining us today. We appreciate your ongoing interest in and support of LanzaTech. I'd like to begin today by sharing several highlights from the second quarter, as well as an update on our key projects and future outcomes. I will then pass it over to Geoff to give a more detailed view of our financial performance and position.

Jeff: With that, I'd like to turn the call over to Jennifer.

Jennifer: thank you kate and thanks to everybody joining us today we appreciate your ongoing interest in and supporttive land att i'd like to begin today by sharing several highlights from the second quarter as well as an update on our kekeep projects and future outlook

Jennifer Holmgren: I will then pass it over to Jeff to give a more detailed view of our financial performance and position. On flight four of our latest industrial presentation, we have outlined the key takeaways from this quarter and have summarized all with one word. Progress. We're making progress on several fronts, and then proud of what our team has accomplished. First, we delivered solid financial results for the second quarter, which were ahead of expectations. Revenue was 17.4 million per quarter, representing 35% growth year over year. A desperate EBITDA loss was 17.8 million per quarter, a significant improvement relative to the prior year and to last quarter.

Geoffrey Trukenbrod: I will then pass it over to Geoff to give a more detailed view of our financial performance and position. Revenue was $17.4 million for the quarter, representing 35% growth year-over-year. Adjusted EBITDA loss was $17.8 million for the quarter, a significant improvement relative to the prior year and to last quarter.

Jeff: I will then pass it over to Geoff to give a more detailed view of our financial performance and position.

Jennifer Holmgren: On slide four of our latest investor presentation, we have outlined the key takeaways from this quarter, and I'll summarize it all with one word: progress. We're making progress on several fronts, and I'm proud of what our team has accomplished. First, we delivered solid financial results for the second quarter, which were ahead of expectations. Revenue was $17.4 million for the quarter, representing 35% growth year-over-year. Adjusted EBITDA loss was $17.8 million for the quarter, a significant improvement relative to the prior year and to the last quarter.

Speaker Change: On slide four of our latest investor presentation, we have outlined the key takeaways from this quarter, and I'll summarize it all with one word, progress. We're making progress on several fronts, and I'm proud of what our team has accomplished.

Geoff: first we delivered solid financial results through the second quarter which were ahead of expectations

Geoff: Revenue was $17.4 million for the quarter, representing 35% growth year-over-year.

Geoff: adjusted ebitda loss was seventeen point eight million for the quarter a significant improvement related to the prior year and to last quarter

Geoffrey Trukenbrod: These strong results were driven by our core biorefining licensing revenue, and in particular, revenue from engineering services and our arrangement with LanzaTech, which allows them to exclusively sublicense our alcohol-to-jet technology. Second, we continue to execute on all key aspects of our business, including biorefining projects, joint development and contract research engagements, and Carbon Smart initiatives. Let me give you a few examples.

Jennifer Holmgren: These strong results were driven by our core biorefining licensing revenue, and in particular, revenue from engineering services and our arrangement with LanzaTech, which allows them to exclusively sublicense our alcohol-to-jet technology. Second, we continue to execute on all key aspects of our business, including biorefining projects, joint development and contract research engagements, and Carbon Smart initiatives. Let me give you a few examples.

Jennifer Holmgren: These strong results were driven by our core bio-refining licensing revenue, and in particular revenue from engineering services, annual arrangement with Glansage, which allows them to exclusively sublicens our alcohol to Jeff's technology. Second, we continue to execute on all key aspects of our business, including bio-refining projects, joint development and contract research engagements, and carbon smart initiatives. Let me give you a few examples. One, our carbon dioxide conversion project would empty be seen and resulted in equipment revenue associated with the order of longer items, enhancing our confidence that this power to ethanol project will enter the construction phase during the second half of this year.

Geoff: These strong results were driven by our core biorefining licensing revenue, and in particular, revenue from engineering services and our arrangement with LanzaTech, which allows them to exclusively sub-license our alcohol-to-jet technology.

Geoff: second we continue to execute on all key aspects of our business including biorefining projects joint development and contract research engagements and carbon smart initiatives let me give you a few examples

Geoffrey Trukenbrod: One, our carbon dioxide conversion project with NTPC in India resulted in equipment revenue associated with the order of long-deal items, enhancing our confidence that this power-to-ethanol project will enter the construction phase during the second half of this year. Additionally, we moved several new projects to early stage engineering across multiple feedstocks and geographies, showing the flexibility of our technology. Added to that, our Carbon Smart business continued to be active with existing customers such as Lululemon, REI, and Cody, bringing new products online, and our commercially available Carbon Smart yarns becoming part of brand supply chains rather than only being used in limited one-off collections.

Jennifer Holmgren: One, our carbon dioxide conversion project with NTPC in India resulted in equipment revenue associated with the order of long-deal items, enhancing our confidence that this power-to-ethanol project will enter the construction phase during the second half of this year. Additionally, we moved several new projects to early stage engineering across multiple feedstocks and geographies, showing the flexibility of our technology. Added to that, our Carbon Smart business continued to be active with existing customers such as Lululemon, REI, and Cody, bringing new products online and our commercially available Carbon Smart yarns becoming part of brand supply chains rather than only being used in limited one-off collections. IKEA recently disclosed a long-standing collaboration with us to develop new manufacturing routes for their products from industry emissions, specifically focusing on polypropylene materials.

Geoff: one

Geoff: Our carbon dioxide conversion project with NTPC in India resulted in equipment revenue associated with the order of long-deal items, enhancing our confidence that this power-to-ethanol project will enter the construction phase during the second half of this year.

Jennifer Holmgren: Additionally, we moved several new projects to early stage engineering across multiple feedstocks and geographies, showing the flexibility of our technology. Adding to that, our carbon smart business continued to be active with existing customers such as Lulu Lemon, Ariya, and Cody bringing new products online and our commercially available carbon smart yarns becoming part of brand supply chains rather than only being used in limited one-off collections. IKEA recently disclosed a long-step collaboration with us to develop new manufacturing routes to the products from industry emissions, specifically focusing on polypropylene materials, and we also completed our first pure-play carbon smart fuel sales.

Geoff: Additionally, we moved several new projects to early stage engineering across multiple feedstocks and geographies, showing the flexibility of our technology.

Geoff: Adding to that, our Carbon Smart business continued to be active with existing customers such as Lululemon, REI, and Cody bringing new products online and our commercially available Carbon Smart yarns.

Geoff: becoming part of brand supply chains rather than only being used in limited one -offs collections

Geoff: IKEA recently disclosed a long-standing collaboration with us to develop new manufacturing routes to their products from industry emissions, specifically focusing on polypropylene materials.

Jennifer Holmgren: And we also completed our first pure-plate carbon-smart fuel cell. Putting the right licensing structure, partners, and supply chain infrastructure in place required significant effort, so we're very happy to have reached this milestone. These direct fuel sales build on our existing Carbon Smart business that requires our ethanol to undergo further processing or purification before being supplied to our textile, chemical, and plastics customers. Overall, we're pleased to see such tremendous progress this quarter in our base business.

Geoff: and we also completed our first pure play carbon smart fuel sales

Jennifer Holmgren: Putting the right licensing structure, partners in supply chain infrastructure in place required significant effort; through a very happy coverage this milestone. These direct fuel sales build on our existing carbon smart business that requires our ethanol to undergo further processing or purification before being supplied to our textile, chemical, and plastics customers. Overall, we're pleased to see such tremendous progress this quarter in our based business.

Geoff: Putting the right licensing structure, partners and supply chain infrastructure in place required significant effort. So we're very happy to have reached this milestone.

Geoff: These direct fuel sales build on our existing Carbon Smart business that requires our ethanol to undergo further processing or purification before being supplied to our textile, chemical, and plastics customers.

Geoffrey Trukenbrod: Overall, we're pleased to see such tremendous progress this quarter in our base business. Moving to the third highlight of this quarter, we increased our ownership in LanzaTech by nearly two-thirds to 37 percent, up from 23 percent without the need for any capital contribution from LanzaTech. Fourth, we're excited to announce a $40 million investment from a new investor, Carbon Direct Capital. This strategic capital raise will support our path to profitability and support our working capital needs as we further scale our business. And fifth, we continue to expect revenue for the year to be between $90 and $105 million, with second half revenue being heavily weighted to the fourth quarter.

Geoff: overall we're pleased to see such tremendous progress this quarter in our base business

Jennifer Holmgren: Moving to the third highlight of this quarter, we increased our ownership in LanzaTech by nearly two-thirds to 37 percent, up from 23 percent without the need for any capital contribution from LanzaTech, and the exciting work it is doing to advance the sustainable aviation field market continues to show substantial progress on multiple fronts, while benefiting from continued significant macro tailwinds. Fourth, we're excited to announce a $40 million investment from a new investor, Carbon Direct Capital.

Jennifer Holmgren: Moving to the third highlight of this quarter, we increase our ownership and landscape at nearly two thirds to 37%, up from 23%, without the need for any capital contribution for lands attack. Land success and the exciting work it is doing to advance the sustainable aviation fuel market continues to show substantial progress on multiple fronts while benefiting from continued significant macro tailwinds.

Geoff: Moving to the third highlight of this quarter, we increased our ownership in LanzaTech by nearly two-thirds to 37%, up from 23%, without the need for any capital contribution for LanzaTech.

Geoff: LanzaJet and the exciting work it is doing to advance the sustainable aviation fuel market continues to show substantial progress on multiple fronts, while benefiting from continued significant macro tailwinds.

Jennifer Holmgren: Fourth, we're excited to announce a $40 million investment from a new investor, Carbon Direct Capital. This certificate capital raise will support our path to profitability and support our working capital needs as we further scale our business. And fifth, we continue to expect revenue for the year to be between 90 to 105 million dollars, with second-health revenue being heavily weighted to the fourth quarter. Jeff will provide more details on our latest financial outlook, including greater detail on the breakdown between the third and fourth quarter in his remarks.

Geoff: Fourth, we're excited to announce a 40 million dollar investment from a new investor, Carbon Direct Capital.

Jennifer Holmgren: This strategic capital raise will support our path to profitability and support our working capital needs as we further scale our business. And fifth, we continue to expect revenue for the year to be between $90 and $105 million, with second half revenue being heavily weighted to the fourth quarter.

Geoff: This strategic capital raise will support our path to profitability.

Geoff: and support our working capital needs as we further scale our business.

Speaker Change: and SIFT, we continue to expect revenue for the year to be between $90 to $105 million, with second house revenue being heavily weighted to the fourth quarter.

Jennifer Holmgren: Jeff will provide more details on our latest financial outlook, including greater detail on the breakdown between the third and fourth quarters in his remarks. Now, for a few more details on these highlights, I mentioned the new project with NTPC, which is India's largest power generation utility company. NPPC and Jackson Green, their engineering, procurement, and construction partner, are planning to use our second generation bioreactor to biorefine carbon dioxide with green hydrogen to produce valuable fuels, chemicals, and raw materials.

Geoff: Geoff will provide more details on our latest financial outlook, including greater detail on the breakdown between the 3rd and 4th quarter in his remarks.

Jennifer Holmgren: Now, for a few more details on these highlights, I mentioned a new project with NPPC, which is India's largest power generation utility company. NPPC and Jackson Green, their engineering procurement and construction partner, are planning to use our second generation bioreactor to biorefine carbon dioxide with green hydrogen to produce valuable shields, chemicals, and raw materials. Having proven, we can use carbon dioxide in every fine use setting within general cooperation. We're expanding that ability with NTPC to a feed-soc stream where CO2 is the only carbon source. In fact, LanzaTech can convert CO2 with the addition of hydrogen. I really made from green energy in our carbon capture and utilization platform.

Geoffrey Trukenbrod: Now, for a few more details on these highlights, I mentioned the new project with NTPC, which is India's largest power generation utility company. NPPC and Jackson Green, their engineering, procurement, and construction partner, are planning to use our second generation bioreactor to biorefine carbon dioxide with green hydrogen to produce valuable fuels, chemicals, and raw materials. This is an inspiring example of the elusive power to x made real.

Speaker Change: now for a few more details on these highlights i mentioned the new project with npc which is india s largest power generation utility company

Speaker Change: NPPC and Jackson Green, their engineering procurement and construction partner, are planning to use our second-generation bioreactor to biorefine carbon dioxide with green hydrogen to produce valuable fuels, chemicals, and raw materials.

Jennifer Holmgren: Having proven we can use carbon dioxide in a refinery setting with Indian Oil Corporation, we're expanding that ability with NTPC to a feedstock stream where CO2 is the only carbon source. In fact, LanzaTech can convert CO2 with the addition of hydrogen, ideally made from green energy, in our carbon capture and utilization platform. NTPC's carbon recycling facility is designed to showcase the readiness of LanzaTech's technology for regions that are transforming the power sector and, in turn, enabling the widespread production of sustainable fuels, chemicals, and raw materials from CO2. This is an inspiring example of the elusive power to x made real.

Geoff: Having proven we can use carbon dioxide in a refinery setting with Indian Oil Corporation, we're expanding that ability with NTPC to a feedstock stream where CO2 is the only carbon source.

Speaker Change: In fact, Lancetec can convert CO2 with the addition of hydrogen.

Speaker Change: ideally made from green energy in our carbon capture and utilization platform.

Jennifer Holmgren: NTPC's carbon recycling facility is designed to showcase a readiness of LanzaTech's technology for regions that are transforming the power sector and, in turn, enabling the widespread production of sustainable fuels, chemicals, and raw materials from CO2. This is an inspiring example of the elusive power to X majorial. As mentioned earlier, we continue to realize the value of our LanzaTech shareholding through our increased ownership in and continued collaboration with LanzaTech. By way of background, this increase in LanzaTech ownership was always part of the plan that we put in place for the commercialization of the alcohol to jet or APJ process when we spun LanzaTech off into a standalone business four years ago.

Speaker Change: NTPC's carbon recycling facility is designed to showcase the readiness of LanzaTech's technology for regions that are transforming the power sector, and in turn, enabling the widespread production of sustainable fuels, chemicals, and raw materials from CO2.

Speaker Change: this is an inspiring example of be elusive power to x mari

Jennifer Holmgren: As mentioned earlier, we continue to realize the value of our LanzaJet shareholding through our increased ownership in and continued collaboration with LanzaJet. By way of background, this increase in LanzaJet ownership was always part of the plan that we put in place for the commercialization of the alcohol-to-jet or APJ process when we spun LanzaJet off into a standalone business four years ago. Our agreement with LanzaTech allowed them to develop the world's first commercial APJ plant and allowed them to further sub-license the APJ technology that was originally developed by LanzaTech in collaboration with the Pacific Northwest National Lab and the U.S. Department of Energy.

Speaker Change: as mentioned earlier will continue to realize the value of our lam age et shareholding through our increased ownershipift in and continued collaboration with lana

Speaker Change: By way of background, this increase in LanzaJet ownership was always part of the plan that we put in place for the commercialization of the alcohol-to-jet or APJ process when we spun LanzaJet off into a stand-alone business four years ago.

Jennifer Holmgren: Our agreement with LanzaTech allowed them to develop the world's first commercial APJ plan and allows them to further sub-license the APJ technology that was originally developed by LanzaTech in collaboration with the Pacific Northwest National Lab and the U.S. Department of Energy. With LanzaTech's success in licensing the APJ technology in June, we received the first of what is anticipated to be a total of three additional challenges of LanzaTech common stock. The first time we received in June increased our LanzaTech ownership of 37% up from 23% and was related to a sub-license issued to Jet Zero Australia.

Speaker Change: Our agreement with LanzaTech allowed them to develop the world's first commercial APJ plan.

Speaker Change: and allows them to further sublicense the eightj technology that was originally developed by lamensof tech collaboration with the pacific most west national lab and the u s department of energy

Jennifer Holmgren: With LanzaJet's success in licensing the APJ technology, in June, we received the first of what is anticipated to be a total of three additional tranches of LanzaJet common stock. The first tranche we received in June increased our LanzaJet ownership to 37%, up from 23%, and was related to a sub-license issued to JetZero Australia. Jet Zero Australia is developing Australia's first ethanol-to-sustainable aviation fuel plant, and LanzaTech's Freedom Pines Fuels Facility, located in South Brigham, Georgia, is the reference plant for the project.

Speaker Change: With LanzaJet's success in licensing the ATJ technology, in June , we received the first of what is anticipated to be a total of three additional tranches of LanzaJet common stock.

Speaker Change: The first science received in June increased our LanzaJet ownership to 37%, up from 23%, and was related to a sub-license issued to Jet Zero Australia.

Jennifer Holmgren: Jet Zero Australia is developing Australia's first ethanol to sustainable aviation fuel plan, and LanzaTech's Freedom-Pine fuels facility located in South Putam, Georgia, is the reference plan for the project. We expect to receive the other two tranches of shares as LanzaTech further commercially sub-licenses our technology, which is protected to result in an ownership fake and LanzaTech above 50%, subject to delusion from potential LanzaTech equity financing events. Given the projects and opportunities LanzaTech is working on, we have a line of sight to upcoming sub-licensing events and expect an additional equity tranche within the next six months, with the third expected during 2025.

Speaker Change: Jet Zero Australia is developing Australia's first ethanol-to-sustainable aviation fuel plant, and LanzaTech's Freedom Pines Fuels Facility, located in South Britain, Georgia, is the reference plant for the project.

Geoffrey Trukenbrod: We expect to receive the other two tranches of shares as LanzaJet further commercially sub-licenses our technology, which is projected to result in a ownership stake in LanzaJet above 50 percent, subject to dilution from potential LanzaJet equity financing events. Given the projects and opportunities LanzaTech is working on, we have a line of sight to upcoming sub-licensing events and expect an additional equity tranche within the next six months, with the third expected during 2025.

Jennifer Holmgren: We expect to receive the other two tranches of shares as LanzaJet further commercially sub-licenses our technology, which is projected to result in a ownership stake in LanzaJet above 50 percent, subject to dilution from potential LanzaJet equity financing events. Given the projects and opportunities LanzaTech is working on, we have a line of sight to upcoming sub-licensing events and expect an additional equity tranche within the next six months, with the third expected during 2025. Added to the benefit of our increased ownership percentage is that we believe LanzaJet continues to grow its own enterprise value.

Speaker Change: We expect to receive the other two tranches of shares as LanzaJet further commercially sub-licenses our technology, which is projected to result in an ownership stake in LanzaJet above 50%, subject to dilution from potential LanzaJet equity financing events.

Speaker Change: Given the projects and opportunities LanzaTech is working on, we have a line of sight to upcoming sub-licensing events and expect an additional equity tranche within the next six months, with the third expected during 2025.

Jennifer Holmgren: Adding to the benefit of our increased ownership percentage is that we believe LanzaTech continues to grow its own enterprise value. This is due to the upcoming production of the first ever commercial quantities of staff from an APJ process that LanzaTech's Freedom-Pines fuel facility from the development of an execution on a robust pipeline of APJ sub-licensing opportunities and from the recent additions of multiple world-class co-investors including Airbus, Group ADP, Microsoft Climate Innovation Fund, MUSG, Southwest Airlines. Lens. Lensaget is growing quickly. Commercially, LanzaTech and Lensaget are actively collaborating on several projects, whereby commercial partners are expected to deploy both the LanzaTech and Lensaget platforms in order to convert local waste resources to drop-in sustainable radiation fuel.

Geoffrey Trukenbrod: Added to the benefit of our increased ownership percentage is that we believe LanzaJet continues to grow its own enterprise value. This is due to the upcoming production of the first-ever commercial quantities of SAF from an APJ process at LanzaJet's Freedom Pines fuel facility, from the development of an execution on a robust pipeline of APJ sub-licensing opportunities, and from the recent additions of multiple world-class co-investors, including Airbus, Group ADP, Microsoft Climate Innovation Fund, MUSG, and Southwest Airlines.

Speaker Change: adding to the benefit of our increased ownership percentages that we believe land get continues to grow its own enterprise value

Jennifer Holmgren: This is due to the upcoming production of the first-ever commercial quantities of SAF from an APJ process at LanzaJet's Freedom Pines fuel facility, from the development of an execution on a robust pipeline of APJ sub-licensing opportunities, and from the recent additions of multiple world-class co-investors, including Airbus, Group ADP, Microsoft Climate Innovation Fund, MUSG, and Southwest Airlines. LanzaTech is Commercially, LanzaTech and LanzaJet are actively collaborating on several projects whereby commercial partners are expected to deploy both the LanzaTech and LanzaJet platforms in order to convert local waste resources into drop-in sustainable aviation fuel.

Speaker Change: This is due to the upcoming production of the first ever commercial quantities of SAF from an APJ process at LanzaJet's Freedom Pines fuel facility.

Speaker Change: from the development of an execution on a robust pipeline of APK sub-licensing opportunities, and from the recent additions of multiple world-class co-investors, including Airbus, Group ADP, Microsoft Climate Innovation Fund.

Speaker Change: MUSG Southwest Airlines

Speaker Change: LanzaJet is growing quickly.

Speaker Change: commercially ls a taken lenss a yet are actively collaborating on several projects whereby commercial partners are expected to deployed both the lens have taken llandage at platforms in order to conver localris resources to drop in sustainableab adiation fuel

Jennifer Holmgren: The sustainable radiation fuel produced through the combined processes is capable of reducing aviation emissions by at least 85 percent, depending in part on the waste-based feedstock selection. Let's be clear that every carbon-rich waste feedstock from solid carbon, including carbon-locked in units of a solid waste or biomass, industrial offgasters, including those rich in CO2, to carbon and biogas, can all be converted to SaaS in this way. The robust pipeline of opportunities that exists for this type of collaborative waste-based fuel solution is expected to be a significant demand driver for our bio-refining business and a tea pathway for LanzaTech to license its technology.

Jennifer Holmgren: The sustainable aviation fuel produced through the combined processes is capable of reducing aviation emissions by at least 85%, depending in part on the waste-based feedstock selection. Let's be clear that every carbon-rich waste feedstock, including solid carbon, including carbon-logged and municipal solid waste or biomass, industrial off-gases, including those rich in CO2, to carbon and biogas, can all be converted to SAF in this way.

Speaker Change: The sustainable aviation fuel produced through the combined processes is capable of reducing aviation emissions by at least 85%, depending in part on the waste-based feedstock selection.

Speaker Change: let's be clear that every carbon richwayice ached stop from solid carbon including carbon lo in municip a solid waste or biomass

Speaker Change: industrial off gassets including those rich in q two to carbon and biogas can all be conferredted to saas in this way

Jennifer Holmgren: The robust pipeline of opportunities that exists for this type of collaborative waste-based fuel solution is expected to be a significant demand driver for our biorefining business and a key pathway for LanzaTech to license its technology. To facilitate delivering these projects, LanzaTech and LanzaJet launched our joint offering called Circular. Circular is a coordinated commercial offering and a powerful end-to-end solution utilizing LanzaTech's gas fermentation platform in conjunction with LanzaJet's APJet platform to produce sustainable aviation fuel and renewable diesel from a wide range of waste seed stocks. Scaling SAF for urgency is critically important for aviation, a hard-to-abate sector representing 3% of today's global CO2 footprint. In 2023, a mere 0.2% of global aviation fuel volumes were set.

Speaker Change: The robust pipeline of opportunities that exist for this type of collaborative waste-based fuel solution is expected to be a significant demand driver for our biorefining business and a key pathway for LanzaTech to license its technology.

Jennifer Holmgren: To facilitate delivering these projects, LanzaTech and Lensaget launched our joint offering called Circulaire. Circulaire is a coordinated commercial offering and powerful end-to-end solution utilizing LanzaTech scabs from the patient platform. In conjunction with LanzaTech's APJ platform, to produce sustainable radiation fuel and renewable diesel from a wide range of waste feedstocks. Stealing SaaS for urgency is critically important for aviation, a heart-to-a-bake sector, representing 3% of today's global CO2 footprint. In 2023, a near-point 2% of global aviation fuel volumes were sapped, but this is expected to jump to 1% in 2026 and to approximately 10% to 10 billion gallons in 2030.

Geoffrey Trukenbrod: The sustainable aviation fuel produced through the combined processes is capable of reducing aviation emissions by at least 85%, depending in part on the waste-based feedstock selection. The robust pipeline of opportunities that exist for this type of collaborative waste-based fuel solution is expected to be a significant demand driver for our biorefining business and a key pathway for LanzaTech to license its technology. To facilitate delivering these projects, LanzaTech and LanzaJet launched a joint offering called Circular.

Speaker Change: to facilitate delivering these projects lans a take adv ic get launched our joint offering carard circular

Speaker Change: Circular is a coordinated commercial offering and powerful end-to-end solution utilizing Lanfotec's gas fermentation platform in conjunction with Lanfajet's APJET platform to produce sustainable aviation fuel and renewable diesel from a wide range of waste seed stocks.

Speaker Change: Scaling SAF for urgency is critically important for aviation, a hard-to-abate sector representing 3% of today's global CO2 footprint.

Speaker Change: In 2023, a mere 0.2% of global aviation fuel volumes were shafted.

Jennifer Holmgren: But this is expected to jump to 1% in 2026 and to 10%, or approximately 10 billion gallons, in 2030. The enormous scale-up of the SAF industry necessary to meet this demand is also benefiting from recent regulatory tailwinds around the world that support the use of a variety of waste feedstocks to meet that end. This supports the rapid build-out of technologies like LanzaTech that can flexibly use locally available feedstocks to suit regional

Speaker Change: but this is expected to jump to one percent in two thousand and twenty six and to ten percent or approximately ten billion gallons in two thousand and thirty

Jennifer Holmgren: The enormous scale up of the faff industry, necessary to meet this demand, is also benefiting from recent regulatory tailwinds around the world that support the use of the variety of waste feedstocks to meet that end. This supports rapid build-out of technologies at LanzaTech that can flexibly use locally available feedstocks to suit regional conditions. Circulaire builds on the unanniable momentum behind scaling SaaS production globally and a large opportunity set available to our two companies.

Speaker Change: The enormous scale-up of the SAF industry necessary to meet this demand is

Speaker Change: is also benefiting from recent regulatory tailwinds around the world that support the use of a variety of waste feedstocks to meet that end.

Speaker Change: This supports rapid build-out of technologies like LanzaTech that can flexibly use locally available feedstocks to suit regional conditions.

Jennifer Holmgren: Circulair builds on the undeniable momentum behind scaling SAF production globally and the large opportunity set available to our two companies. You'll hear more about Circulair in the coming months as we expect to announce some important joint projects with LanzaTech.

Speaker Change: Circulair builds on the undeniable momentum behind scaling SAF's production globally and the large opportunity set available to our two companies. You'll hear more about Circulair in the coming months as we expect to announce some important joint projects with LanzaTech.

Jennifer Holmgren: You'll hear more about Circulaire in the coming months as we expect to announce some important joint projects with LanzaTech.

Jennifer Holmgren: I also want to take a few moments to give an update on Project Secure, a major initiative which we announced in March of this year. By way of background, LanzaTech and our partner Technique Energies were selected to receive a $200 million award from the D.U.S. Department of Energy's Office of Clean Energy Demonstrations. The award is for the construction of a new LanzaTech gas foundation facility which will be integrated with Technique Energies, Hummingbird ethanol to ethylene technology and an existing steam cracker in the D.U.S. scope. of course. Importantly, this is not an R&D project. The R&D and related investments are complete.

Geoffrey Trukenbrod: I also want to take a few moments to give an update on Project Secure, a major initiative which we announced in March of this year. The award is for the construction of a new LanzaTech gas fermentation facility which will be integrated with Technet Energy's Hummingbird ethanol to ethylene technology and an existing steam cracker on the U.S. Gulf Coast. On the feedstock front, no new fossil feedstock is being brought in to produce more ethylene.

Jennifer Holmgren: I also want to take a few moments to give an update on Project Secure, a major initiative which we announced in March of this year. By way of background, LanzaTech and our partner, Technique Energies, were selected to receive a $200 million award from the U.S. Department of Energy's Office of Green Energy Demonstration. The award is for the construction of a new LanzaTech gas fermentation facility, which will be integrated with Technet Energy's Hummingbird ethanol to ethylene technology and an existing steam cracker on the U.S. Gulf Coast.

Speaker Change: I also want to take a few moments to give an update on Project Secure, a major initiative which we announced in March of this year.

Speaker Change: By way of background, LanzaTech and our partner Technip Energies were selected to receive a $200 million award from the U.S. Department of Energy's Office of Clean Energy Demonstrations.

Speaker Change: The award is for the construction of a new LanzaTech gas fermentation facility which will be integrated with Technique Energy's Hummingbird ethanol to ethylene technology and an existing steam cracker in the U.S. Gulf Coast.

Jennifer Holmgren: Importantly, this is not an R&D project. The R&D and related investments are already complete. The funds from this award will aid in reducing the capital expense for this first-of-a-kind commercial facility. Project Secure represents a highly replicable project opportunity set for LanzaTech as there are more than 370 ethylene steam crackers across the world, and our decarbonizing solution efficiently bolts on to that existing infrastructure. On the feedstock front, no new fossil feedstock is being brought in to produce more ethylene.

Speaker Change: Importantly, this is not an R&D project.

Speaker Change: The R&D and related investments are complete.

Jennifer Holmgren: The funds from this award will aid in reducing the capital expense for this first-of-the-kind commercial facility. Project Secure represents a highly reputable project opportunity set for LanzaTech, as there are more than 370 ethylene steam crackers across the world and are decarbonizing solution, efficiently bolts on through that existing infrastructure. On the feedstock front, no new fossil feedstock is brought in to produce more ethylene. Rather, we're generating more ethylene for the producer from what would have been their shield to waste emissions. Ethylene 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 foam and jet fuel, and is expected to be a $200 billion market by 2030.

Speaker Change: The funds from this award will aid in reducing the capital expense for this first-of-a-kind commercial facility.

Speaker Change: project secure represents a highly rero cable project opportunity set for lam fect as there are more than three hundred and seventy eleom steam crackers across the world and our decarbonizing solution efficiently bolts onto thatad existing infrastructure

Speaker Change: On the feedstock front, no new fossil feedstock is being brought in to produce more ethylene. Rather, we're generating more ethylene for the producer from what would have been their CO2 waste emissions.

Geoffrey Trukenbrod: Rather, we're generating more ethylene for the producer from what would have been their CO2 waste emissions. With our combined solution, we take those emissions and convert them into a valuable product. This maximizes the use of the carbon molecules going into that facility, enabling our customer to increase their profits by being more resource-efficient. We're currently working collaboratively with the DOE on the agreement for the project and anticipate completing the award contracting process in the coming months with the goal of receiving initial award funds by the end of 2025.

Jennifer Holmgren: Rather, we're generating more ethylene for the producer from what would have been their CO2 waste emissions. Ethylene 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 foam and jet fuel, and is expected to be a $200 billion market by 2030. 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 it is in need of carbon abatement solutions like what LanzaTech provides.

Speaker Change: Ethylene 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 foam and jet fuel, and is expected to be a $200 billion market by 2030.

Jennifer Holmgren: However, ethylene production is also made your source of emissions globally responsible for the release of over 500 million tons of carbon dioxide into the atmosphere per year, and it is in need of carbon abatement solutions like what LanzaTech provides. With our combined solution, we take those emissions and convert them into valuable product. This maximizes the use of the carbon molecules going into that facility, enabling our customer to increase the profits by being more resource sufficient. We're currently working collaboratively with the theory and the agreements for the project that anticipate completing their work contracting process in the coming months, with the goal of receiving initial award funds by the end of 2024.

Speaker Change: However,

Speaker Change: 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 in need of carbon abatement solutions like what LanzaTech provides.

Jennifer Holmgren: With our combined solution, we take those emissions and convert them into a valuable product. This maximizes the use of the carbon molecules going into that facility, enabling our customer to increase their profits by being more resource-sufficient. We're currently working collaboratively with the DOE on the agreement for the project and anticipate completing the award contracting process in the coming months with the goal of receiving initial award funds by the end of 2025.

Speaker Change: With our combined solution, we take those emissions and convert them into valuable product. This maximizes the use of the carbon molecules going into that facility, enabling our customer to increase their profits by being more resource-sufficient.

Speaker Change: We are currently working collaboratively with the DOE on the agreements for the project and anticipate completing the award contracting process in the coming months with the goal of receiving initial award funds by the end of 2024.

Jennifer Holmgren: I'll touch now on a highlight I mentioned at the start, and that's the work we're doing with IKEA related to polypropylene. We are working with IKEA to convert waste carbon-rich gases to isopropyl alcohol and then to propylene. Polypropylene is a very versatile and durable plastic with many different uses, and customers like IKEA are interested in applications where mechanically recycled plastic cannot be used today

Jennifer Holmgren: I'll touch now on a highlight and mention that the start and that's the work we're doing with IKEA related to polypropylene. We're working with IKEA to convert waste carbon-rich gases to isopropyl alcohol and then to propylene. Polypropylene is a very versatile and durable plastic with many diffusers, and customers like IKEA are interested in applications where mechanically recycled plastic cannot be used today. For example, transparent products, products requiring food contact, or other products with very short requirements, including medical applications. Today, 100% of new propylene in use worldwide is made from petrochemicals. Replacing all of the world's fossil propylene production with carbon capture and utilization made polypropylene would reduce carbon emissions by an estimated 700 million times per year or more.

Speaker Change: I'll touch now on a highlight I mentioned at the start, and that's the work we're doing with IKEA related to polypropylene. We're working with IKEA to convert waste carbon-rich gases to isopropyl alcohol and then to propylene.

Speaker Change: Polypropylene is a very versatile and durable plastic with many different uses and customers like IKEA are interested in applications where mechanically recycled plastic cannot be used today.

Jennifer Holmgren: For example, transparent products, products requiring food contact, or other products with very strict requirements, including medical applications. Since today, 100% of new propylene in use worldwide is made from petrochemicals, replacing all of the world's fossil propylene production with carbon capture and utilization made polypropylene would reduce carbon emissions by an estimated 700 million tons per year or more. The global propylene market size was a little over 120 billion dollars in 2022 and is expected to expand at a compound annual growth rate, or CAGR, of close to 5% from 2023 to 2030.

Speaker Change: For example, transparent products, products requiring food contact, or other products with very strict requirements, including medical applications. Today, 100% of new propylene in use worldwide is made from petrochemicals.

Geoffrey Trukenbrod: Today, 100% of new propylene in use worldwide is made from petrochemicals, and the cost savings we expect from our reorganization and from our reprioritization earlier this year are starting to show up in our results. Number one, we have a commercially proven and diverse technology with six commercially operating facilities. We're not only ramping up production volumes and generating licensing revenues, but we also have over half a decade of operational experience at commercial scale.

Speaker Change: replacing all of the world's fossil propri in production with carbon capture neutation made polypropriing would uce carbon emissions by an estimated seven hundred million tons per year or more

Jennifer Holmgren: The global propylene market size was a little over 120 billion in 2022 and is expected to extend at a compound annual growth rate or CAGR of close to 5% from 2023 to 2030. We talk a lot about the anticipated growth ahead for Lensapag related to SAF, and it's my belief that our work with chemicals could grow in tandem with SAF and be just as big. This is not just an idea. In fact, we produce sufficient isopropanol for IKEA to make food storage containers as a proof of concept. We also completed the development work on our isopropanol process, which means we should be ready to utilize and set the technology this year.

Speaker Change: The global propylene market size was a little over $120 billion in 2022.

Speaker Change: and is expected to expand at a compound annual growth rate, or CAGR, of close to 5% from 2023 to 2030.

Jennifer Holmgren: We talk a lot about the anticipated growth ahead for LanzaTech related to SAF, and it's my belief that our work with chemicals could grow in tandem with SAF and be just as big. This is not just an idea.

Speaker Change: We talk a lot about the anticipated growth ahead for LanzaTech related to SAF.

Speaker Change: And it's my belief that our work with chemicals could grow in tandem with SAF and be just as big.

Jennifer Holmgren: In fact, we produced sufficient isopropanol for IKEA to make food storage containers as a proof of concept. We have also completed the development work on our isopropanol process, which means we should be ready to license that technology this year. Our progress is not only driven by growing revenue; it is also underpinned by our commitment to manage costs across the organization, and the cost savings we expect from our reorganization and from our reprioritization earlier this year are starting to show up in our results.

Speaker Change: This is not just an idea. In fact, we produced sufficient isopropanol for IKEA to make food storage containers as a proof of concept. We also completed the development work on our isopropanol process, which means we should be ready to license that technology.

Jennifer Holmgren: Our progress is not only driven by growing revenue; it is also underpinned by our commitment managed cost across the organization. And the cost savings we expect from our reorganization and from our reprioritization earlier this year are starting to show up in our results.

Speaker Change: this year.

Speaker Change: Our progress is not only driven by growing revenue, it is also underpinned by our commitment to manage costs across the organization.

Speaker Change: And the cost savings we expect from our reorganization and from our reprioritization earlier this year are starting to show up in our results.

Jennifer Holmgren: Stepping back from the specifics of the many important projects and developments I have discussed, I want to address a question that I'm frequently asked by customers, partners, investors, thought leaders, and stakeholders. And the question is, what is LanzaTech's competitor to the pandemic? Or stated differently, what gives you confidence that LanzaTech will be successful over the long term? And while there are many reasons to stand out. Number one, we have a commercially proven and diverse technology with six commercially operating facilities. We are not only ramping up production volumes and generating licensing revenues, but we also have over half a decade of operational experience at commercial scale.

Speaker Change: stepping back from the specifics so the many important projects and developments have discussed i want to address a question that i'm frequently asked by customers' partners investors

Speaker Change: thought leaders and stakeholders and the question is what is lans ofeffectxs competitive advantage or stated differently what gives you confidence that lens that there will be successful over the long term

Speaker Change: and while there are many reasons to stand out

Jennifer Holmgren: Number one, we have a commercially proven and diverse technology with six commercially operating facilities. We're not only ramping up production volumes and generating licensing revenues, but we also have over half a decade of operational experience at commercial scale. This extensive know-how allows us to partner with an impressive roster of customers, innovate continuously, and build more commercial-scale facilities. Later this year, we expect to see announcements regarding repeat licensees and customers as we continue to move from first-of-a-kind in the region to a series of plans with existing partners.

Speaker Change: number one

Speaker Change: We have a commercially proven and diverse technology with six commercially operating facilities. We're not only ramping up production volumes and generating licensing revenues, but we also have over half a decade of operational experience at commercial scale.

Geoffrey Trukenbrod: This extensive know-how allows us to partner with an impressive roster of customers. Number two, the flexibility of our technology. As I said at the start, we are making undeniable progress, and that, to me, and to all of us here at LanzaTech, is very satisfying.

Jennifer Holmgren: This extensive know-how allows us to partner with an impressive roster of customers, innovate continuously, and build more commercial scale facilities. Later this year, we expect to see announcements regarding repeat licensees and customers as we continue to move from first of a kind in a region to a series of plans with existing partners. Number two, the flexibility of our technology. Our ability to utilize a diverse range of feedstocks, such as municipal and industrial waste, agriculture and forestry residues, and industrial off-gasters, ensures a commercial scale, low-class supply of input globally, allowing us to benefit from regional variations in feedstocks and produce valuable ethanol for major markets, in sustainable fuels, textiles, plastics and chemicals.

Speaker Change: this extensive knowhow allows us de partner with an impressive roster of customers

Speaker Change: Innovate continuously and build more commercial scale facilities.

Speaker Change: Later this year we expect to see announcements regarding repeat licensees and customers as we continue to move from first of a kind in the region to a series of plans with existing partners.

Jennifer Holmgren: Number two, the flexibility of our technology. Our ability to utilize a diverse range of waste feedstocks, such as municipal and industrial waste, agriculture and forestry residues, and industrial off-gases, ensures a commercial-scale, low-cost supply of inputs globally, allowing us to benefit from regional variations in feedstocks and produce valuable ethanol for major markets in sustainable fuels, textiles, plastics, and chemicals. We are a business built on a platform which has led to sufficient interest to enable a licensing model.

Speaker Change: number two the sucxiability of our technology

Speaker Change: Our ability to utilize a diverse range of waste feedstocks, such as municipal and industrial waste,

Speaker Change: Agriculture and Forestry Residues and Industrial Off-Gases ensures a commercial-scale, low-cost supply of inputs globally, allowing us to benefit from regional variations in feedstocks and produce valuable ethanol for major markets.

Speaker Change: in sustainable fuels, textiles, plastics, and chemicals.

Jennifer Holmgren: We are a business built on a platform which has led to the sufficient interest to enable a licensing model, and we are building a strong recurring revenue foundation, brick by brick, with each license that we deploy. As I said at the start, we are making undeniable progress, and that to me and to all of us here at Lancet Pack is very satisfying.

Speaker Change: we are a business build on a platform which has led the sufficient interest to enable a licensing model and we're building a strong recurring revenue foundation brick by brick with each license that we deploy

Jennifer Holmgren: And we're building a strong recurring revenue foundation, brick by brick, with each license that we deploy. As I said at the start, we are making undeniable progress, and that, to me, and to all of us here at LanzaTech, is very satisfying. With that, I'll turn it over to Jeff. Thanks, Jennifer.

Speaker Change: As I said at the start, we are making undeniable progress and that to me and to all of us here at LanzaTech is very satisfying.

Geoffrey Trukenbrod: With that, I'll turn it over to Jeff.

Geoffrey Trukenbrod: Thanks, Jennifer. Good morning, everyone, and thank you for joining us on the call. I'll discuss our results for the second quarter of 2024, and then I'll provide further details on our expectations for the back half of this year. As Jennifer mentioned, and as seen on slide five of our latest investor presentation, we reported strong revenue growth for the second quarter of 2024, achieving 17.4 million dollars of total revenue, which exceeded expectations.

Geoffrey Trukenbrod: Thanks, Jennifer.

C: with that i'll turn it over to c thanks jennifer good morning everyone and thank you for joiningus on the call i'll discuss our results for the second quarter of two thousand andtwentyfour and i'll provide further details on our expectations for the back half of this year

Geoffrey Trukenbrod: Good morning, everyone, and thank you for joining us on the call. I'll discuss our results for the second quarter of 2024, and then I'll provide further details on our expectations for the back half of this year. As Jennifer mentioned and has seen on slide five of our latest investor presentation, we reported strong revenue growth for the second quarter of 2024, achieving $17.4 million of total revenue, which exceeded expectations. This represented the year-over-year growth of 35% and 70% quarter-over-quarter. Reeling down into the separate revenue categories, this quarter's strong results were driven by a $13.7 million in our buyer-finding business, which was up 41%.

C: As Jennifer mentioned, and as seen on slide 5 of our latest investor presentation, we reported strong revenue growth for the second quarter of 2024, achieving $17.4 million of total revenue, which exceeded expectations. This represented year-over-year growth of 35% and 70% quarter-over-quarter.

Geoffrey Trukenbrod: This represented year-over-year growth of 35% and 70% quarter-over-quarter. Drilling down into the separate revenue categories, this quarter's strong results were driven by revenue of $13.7 million in our buyer refining business, which was up 41% year over year. As Jennifer noted, a significant component of this revenue was related to the additional equity consideration we received from LanzaJet and Q2. This additional consideration relates to the exclusive licensing agreement associated with the A2J technology that we entered into with LanzaJet when we originally spun LanzaJet out into its own business.

Geoffrey Trukenbrod: This represented year-over-year growth of 35% and 70% quarter-over-quarter. Drilling down into the separate revenue categories, this quarter's strong results were driven by revenue of $13.7 million in our buyer refining business, which was up 41% year-over-year. As Jennifer noted, a significant component of this revenue was related to the additional equity consideration we received from LanzaJet and Q2. The company has consistently accounted for this transaction as a revenue transaction with a customer under ASC 606. The licensing and technical support services provided are recognized as a single combined performance obligation satisfied over the expected period of those services, beginning May 2020 through December 2025.

Speaker Change: really down into the separate revenue categories this quarter's strong results were driven by revenue of thirteen point seven million in our bio refining business which was up forty one percent year-over-year

Geoffrey Trukenbrod: here over here. As Jennifer noted, a significant component of this revenue was related to the additional equity consideration we received from LanzaJet and Q2. This additional consideration relates to the exclusive licensing agreement associated with the A to J technology that we entered into with LanzaJet when we originally spun the LanzaJet out into its own business. When we launched LanzaJet in 2020, we received our initial equity ownership state and consideration for exclusively licensing them, the A to J technology development, LanzaTech. The company is consistently accounted for this transaction as a revenue transaction with a customer under ASC 606.

Speaker Change: as jennifer noted a significant component of this revenue was related to the additional equity consideration we received from landa et in q two

Speaker Change: this additional consideration relates to the exclusive licensing agreement associated with the adj technology that we entered into its lant a jet when we originally spun landa jet out into its own business

Geoffrey Trukenbrod: When we launched LanzaJet in 2020, we received our initial equity ownership state consideration for exclusively licensing them the A2J technology developed at LanzaTech. The company has consistently accounted for this transaction as a revenue transaction with a customer under ASC 606. The licensing and technical support services provided are recognized as a single combined performance obligation satisfied over the expected period of those services beginning May 2020 through December 2025. Consistent with that approach, the additional equity consideration we received in Q2 was accounted for as additional consideration for that same performance obligation over the same period.

Speaker Change: when we launched landans of jet in two thousand and twenty we received our initial equity ownership state and consideration per exclusively licensing them the j technology development lands attack

Speaker Change: The company has consistently accounted for this transaction as a revenue transaction with a customer under ASC 606. The licensing and technical support services provided are recognized as a single combined performance obligation satisfied over the expected period of those services, beginning May 2020 through December 2025.

Geoffrey Trukenbrod: The licensing and technical support services provided are recognized as a single component performance obligation satisfied over the expected period of those services, beginning May 2020 through December 2025. Consistent with that approach, the additional equity consideration we received in Q2 was accounted for as additional consideration for that same performance obligation over the same period. As contemplated in the original licensing agreement, LanzaJet's ability to further sublicense the A to J technology is enabled by the grant of additional equity to LanzaTech. Associated with LanzaJet's first sublicensing events of the A to J technology, the Q2 equity grant to LanzaTech was the first of what is anticipated to be a total of three additional charges of 15 million shares.

Geoffrey Trukenbrod: Consistent with that approach, the additional equity consideration we received in Q2 was accounted for as additional consideration for that same performance obligation over the same period. For further details regarding the accounting treatment for this transaction, please refer to the Form 10-Q we filed with the SEC today. Joint Development and Contract Research revenue for the second quarter of 2024 was $2.8 million as compared to $2.2 million for the second quarter of 2023, representing an increase of 25% year over year, primarily reflecting the progression and expansion of work with existing JDA partners.

Speaker Change: Consistent with that approach, the additional equity consideration we received in Q2 was accounted for as additional consideration for that same performance obligation over the same period.

Geoffrey Trukenbrod: As contemplated in the original licensing agreement, LanzaJet's ability to further sub-license the A2J technology is enabled by the grant of additional equity to LanzaTech. Associated with LanzaJet's first sub-licensing event for the A2J technology, the Q2 equity grant to LanzaTech was the first of what is anticipated to be a total of three additional tranches of 15 million shares. For each of the first three sub-licensing events, at which point LanzaTech will have received its full consideration for the A2J license.

Speaker Change: As contemplated in the original licensing agreement, LanzaJet's ability to further sub-license the A2J technology is enabled by the grant of additional equity to LanzaTech.

Speaker Change: Associated with LanzaJet's first sub-licensing events of the A2J technology.

Speaker Change: The Q2 Equity Grant to LanzaTech was the first of what is anticipated to be a total of three additional tranches of 15 million shares. For each of the first three sub-licensing events, at which point LanzaTech will have received its full consideration for the A2J license.

Geoffrey Trukenbrod: For each of the first three sublicensing events, at which point LanzaTech will have received its full consideration for the A to J license.

Geoffrey Trukenbrod: For further details regarding the accounting treatment for this transaction, please refer to the Form 10-Q we filed with the SEC today. By refining revenue, Q2 also included startup and engineering services revenue from existing customers, as well as early stage engineering and equipment revenue associated with multiple new customers, including NTPC, one of India's leading power generation companies. Excluding the $7.9 million related to the LanzaJet transaction, these revenues were $5.8 million for the court. Joint development and contract research revenue for the second quarter of 2024 was $2.8 million compared to $2.2 million for the second quarter of 2023, representing an increase of 25% year over year, primarily reflecting the progression expansion of work with existing JDA partners.

Geoffrey Trukenbrod: For further details regarding the accounting treatment for this transaction, please refer to the Form 10-Q we filed with the SEC today. Biorefining revenue in Q2 also included startup and engineering services revenue from existing customers, as well as early-stage engineering and equipment revenue associated with multiple new customers, including NTPC, one of India's leading power generation companies. Excluding the $7.9 million related to the LanzaJet transaction, these revenues were $5.

Speaker Change: For further details regarding the accounting treatment for this transaction, please refer to the Form 10-Q we filed with the SEC today.

Speaker Change: byrefining revenue q two also included start of an engineering services revenue from existing customers as well as early stage engineering and equipment revenue associated with multiple new customers including antpc one of india's leading power generation companies

Speaker Change: Excluding the $7.9 million related to the LanzaJet transaction, these revenues were $5.8 million for the quarter.

Kate Walsh: And now, at this time, I'll turn things over to Kate Walsh, vice-president of investor relations and tax. Please go ahead. Good morning. And thank you for joining us for the LanzaTech Global Inc. 2nd quarter of 2024, earnings conference call. On the call today, I am joined by our board chair and CEO, Dr. Jennifer Holmgren, and our CFO, Geoff Trukenbrod. Earlier this morning, we issued a press release with our 2nd quarter of 2024 financial and operating results, as well as an investor presentation summarizing the company's performance and key operational highlights for the quarter.

Geoffrey Trukenbrod: Joint development and contract research revenue for the second quarter of 2024 was $2.8 million as compared to $2.2 million for the second quarter of 2023, representing an increase of 25% year over year, primarily reflecting the progression and expansion of work with existing JDA partners. And for CarbonSmart, revenue for the second quarter of 2024 was $0.9 million. It was fairly in line with the $1 million we did in the second quarter of 2024. Importantly, Carbon Smart for the first half of 2024 was $1.8 million, as compared to $1 million for the first half of 2023, representing a year-over-year increase of 79%, and we continue to expect a ramp in this revenue category in the back half of the year.

Speaker Change: joint development a contract research revenue for the second quarter of twothousandand twenty four was two point eight million dollars is compared to two point two million or second quarter two thousand and twenty three representing an increase of twenty-five percent year-over-year primarily reflecting the progression expansionof work with existing jd eight partners

Geoffrey Trukenbrod: And for Carbon Smart, revenue for the second quarter of 2024 was $0.9 million. It was fairly in line with the $1 million we did in the second quarter of 2023. Importantly, carbon smart for the first half of 2024 was $1.8 million compared to $1 million for the first half of 2023, representing a year-over-year increase of 79%, and we continue to expect a ramp in this revenue category in the back half of the year. Turning now to cost of revenue, we reported $5.5 million in the second quarter of 2024, as compared to $10.8 million per second quarter of 2023.

Geoffrey Trukenbrod: And for CarbonSmart, revenue for the second quarter of 2024 was $0.9 million. It was fairly in line with the $1 million we did in the second quarter of 2020. Importantly, Carbon Smart for the first half of 2024 was $1.8 million as compared to $1 million for the first half of 2023, representing a year-over-year increase of 79%, and we continue to expect a ramp-up in this revenue category in the back half of the year.

Speaker Change: And for Carbon Smart, revenue for the second quarter of 2024 was $0.9 million, and it was fairly in line with the $1 million we did in the second quarter of 2023.

Speaker Change: importantly harbon smart for the first half oftwo thousand andtwent fourforms one twenty million dollars is compared to one million for the percent two thousand and twenty three representing a year-over-year increase of seventy nine percent and we continue to expect to rpin this revenue category in the back half of the year

Kate Walsh: Please also reference our quarterly report on form 10Q for the quarter ended June 30, 2024 file today. Walsh, our press release and investor presentation can be found in the investor relations section of our website at www.lanzaTech.com.

Geoffrey Trukenbrod: Turning now to cost of revenue, we reported $5.5 million in second quarter 2024, as compared to $10.8 million in second quarter 2023. Cost of revenue for this quarter was largely comprised of headcount allocations related to delivery of our biorefining services and JDA work. As a result of the significant licensing component of our revenue in Q2, and its associated low cost, gross margin was very healthy this quarter, coming in at 68%. However, if we strip out the uplift attributed to the LanzaJet transaction, gross margin was still a solid 42% for the quarter.

Speaker Change: Turning now to cost of revenue, we reported 5.5 million dollars in second quarter 2024 as compared to 10.8 million per second quarter 2023. Cost of revenue for this quarter was largely comprised of headcount allocations related to delivery of our biorefining services and JDA work.

Geoffrey Trukenbrod: Cost of revenue for this quarter was largely comprised of headcount allocations related to delivery of our buyer or finding services in JDA work. As a result of the significant licensing component of our revenue, Q2 and its associated low cost, gross margin was very healthy this quarter, coming in at 68%. If we strip out the uplift attributed to the lands of jet transaction, gross margin was still a solid 42% for the quarter. On the operating cost front, second quarter of 2024 operating expenses were $34.7 million as compared to $32.7 million per second quarter of 2023. Finally, this op-ex came in under budget as we continue to work to drive down our op-ex this year.

Speaker Change: As a result of the significant licensing component of our revenue in Q2, and its associated low cost, gross margin was very healthy this quarter, coming in at 68%. If we strip out the uplift attributed to the LanzaJet transaction, gross margin was still a solid 42% for the quarter.

Geoffrey Trukenbrod: On the operating cost front, second quarter 2024 operating expenses were $34.7 million, as compared to $32.7 million for second quarter 2023. Importantly, this OPEX came in under budget as we continue to work to drive down our OPEX this year. With that said, we still saw a 6% increase in OPEX year over year, as we continue to incur expenses associated with select free FID projects that we're developing, which are not currently eligible for capitalization.

Geoffrey Trukenbrod: On the operating cost front, second quarter 2024 operating expenses were $34.7 million, as compared to $32.7 million for second quarter 2023. Importantly, this OPEX came in under budget as we continue to work to drive down our OPEX this year. At the end of June, we had $75.8 million in cash on hand, which includes cash, investments, and restricted cash. This compares to $92.3 million at the end of the first quarter of 2024. Our total cash burn for the second quarter of 2024 was $16.5 million, which was down significantly as compared to $29.2 million for the first quarter of 2024 and the comparable quarter in 2023.

Speaker Change: On the operating cost front, second quarter 2024 operating expenses were $34.7 million as compared to $32.7 million for second quarter 2023. Importantly, this OPEX came in under budget as we continue to work to drive down our OPEX this year.

Geoffrey Trukenbrod: With that said, we still saw a 6% increase in op-ex year over year, as we continue to incur expenses associated with select 3 FID projects that were developing, which are not currently eligible for capitalization. We expect to recoup these costs where infrastructure capital partners take over these projects at FID and expect the first of these transition transactions to take place during the fourth quarter of 2024. Our second quarter of 2024 adjusted even a loss with $17.20 million, as compared to a second quarter of 2023 adjusted even a loss of $23.20. The year-over-year improvement of 26% is primarily attributable to the higher Q2 revenue and its mix of higher margin, which wrote significantly higher year-over-year gross profit.

Speaker Change: With that said, we still saw a 6% increase in OPEX year over year as we continue to incur expenses associated with select free FID projects that we're developing which are not currently eligible for capitalization.

Geoffrey Trukenbrod: We expect to recoup these costs when our infrastructure capital partners take over these projects at FID and expect the first of these transition transactions to take place during the fourth quarter of 2024. Our second quarter 2024 adjusted EBITDA loss was $17.8 million as compared to a second quarter 2023 adjusted EBITDA loss of $23.8 million. The year-over-year improvement of 26% is primarily attributable to higher Q2 revenue and its mix of higher-margin revenue, which drove a significantly higher year-over-year gross profit.

Speaker Change: We expect to recoup these costs when our Infrastructure Capital Partners take over these projects at FID, and expect the first of these transition transactions to take place during the fourth quarter of 2024.

Jennifer Holmgren: Today's call will begin with remarks from Jennifer providing an overview of our operations, our recent financial results, and our business outlook.

Speaker Change: Our second quarter 2024 adjusted EBITDA loss was $17.8 million, as compared to a second quarter 2023 adjusted EBITDA loss of $23.8 million.

Speaker Change: the year-over-year improvement twenty-six percent is primarily attributable to the higher q two revenue and it makes up higher margin in which ro significantly higher year-over-year horross profit

Geoffrey Trukenbrod: Turning now to our equity and cash position, at the end of June, we had $75.8 million in cash on hand, which includes cash investments and restricting cash. This compares to $92.3 million at the end of the first quarter of 2024. Our total cash for the second quarter of 2024 was $16.5 million, which was now significantly lower as compared to $29.2 million for the first quarter of 2024 and the comparable quarter of 2023. The decreased quarter of a quarter was due in large part to the working capital. It actually previously discussed in our first quarter of 2024 call, including a number of large annual payments, such as 2023 set of capitalization, the majority of our 2024 insurance premiums, and other expenses that are traditionally paid during the first quarter, but expense throughout the year for accounting purposes, as well as a large customer payment that was deferred from Q1 and Q2.

Geoffrey Trukenbrod: Turning now to our liquidity and cash position. At the end of June, we had $75.8 million in cash on hand, which included cash, investments, and restricted cash. This compares to $92.3 million at the end of the first quarter of 2024. Our total cash burn for the second quarter of 2024 was $16.5 million, which was down significantly as compared to $29.2 million for the first quarter of 2024 and the comparable quarter in 2023. The decreased quarter-over-quarter was due in large part to the working capital impacts we previously discussed in our first quarter 2024 call, including a number of large annual payments, such as 2023 instead of compensation, the majority of our 2024 insurance premiums, and other expenses that are traditionally paid during the first quarter but expensed throughout the year for accounting purposes, as well as a large customer payment that was deferred from Q1 into Q2. YouTube Cash Byrne was further benefited by the reduced OpEx I referred to earlier.

Geoffrey Trukenbrod: Jeff will then review in greater detail our financial results and financial outlook.

Speaker Change: Turning now to our liquidity and cash position.

Speaker Change: At the end of June , we had $75.8 million in cash on hand, which includes cash, investments and restricted cash.

Jennifer Holmgren: Jennifer will then conclude with a few closing remarks before we open up the line for questions.

Speaker Change: This compares to $92.3 million at the end of first quarter 2024. Our total cash burn for the second quarter of 2024 was $16.5 million, which was down significantly as compared to $29.2 million for the first quarter of 2024 and the comparable quarter in 2023.

Jennifer Holmgren: With that, I'd like to turn the call already Jennifer.

Jennifer Holmgren: Thank you, Kate, and thanks to everybody joining us today. We appreciate your ongoing interest in and supportive landscape. I'd like to begin today by sharing several highlights from the second quarter, as well as an update on our key projects and future outlook. I will then pass it over to Jeff to give a more detailed view of our financial performance and position. On flight four of our latest industrial presentation, we have outlined the key takeaways from this quarter and have summarated all with one word.

Jennifer Holmgren: Progress. We're making progress on several fronts and then proud of what our team has accomplished. First, we delivered solid financial results for the second quarter, which were ahead of expectations. Revenue was 17.4 million per quarter representing 35% growth year over year. A desperate EBITDA loss was 17.8 million per quarter, a significant improvement relative to the prior year and to last quarter. These strong results were driven by our core bio-refining licensing revenue, and in particular revenue from engineering services, annual arrangement with Glansage, which allows them to exclusively sublicings our alcohol to Jeff's technology.

Geoffrey Trukenbrod: The decreased quarter-over-quarter was due in large part to the working capital impacts we previously discussed in our first quarter 2024 call, including a number of large annual payments, such as 2023 instead of compensation, the majority of our 2024 insurance premiums, and other expenses that are traditionally paid during the first quarter but expensed throughout the year for accounting purposes, as well as a large customer payment that was deferred from Q1 into Q2. I'll now quickly touch on our recent Form 8K related to a lawsuit we filed in connection with what we consider a breach of our forward purchase agreement, or FPA. We are alleging that if, in fact, shares were sold by the shareholder, LanzaTech is entitled to receive from the shareholder approximately $10.16 per share sold, per the terms of the FPA.

Speaker Change: The decreased quarter-over-quarter was due in large part to the working capital impacts we previously discussed in our first quarter 2024 call.

Speaker Change: including a number of large annual payments such as 2023 instead of capitalization.

Speaker Change: themajority of our two thousand and twentyfour surance premiums and other expenses that are traditionally paid during the first quarter but expense throughout the year for accounting purposes as well as a large customer payment that was fer from q one q two

Geoffrey Trukenbrod: Q2 cash for and was further benefited by the reduced off-exer of her two earlier.

Speaker Change: YouTube Cash Byrne was further benefited by the Reduced OpEx I referred to earlier.

Geoffrey Trukenbrod: As Jennifer previously mentioned, we're excited to announce the closing this week of a new $40 million investment by Carman Direct Capital, a globally recognized investor in the energy transition space. This additional capital bolsters our balance sheet and strengthens our financial flexibility. As noted in our 10-Q, this $40 million was invested pursuant to a convertible note purchase agreement, which contemplates one or more closings for up to $150 million of convertible notes. We continue to see additional financing under the convertible no purchase agreement from certain accredited investors, with whom we have a pre-existing, substantive relationship.

Geoffrey Trukenbrod: As Jennifer previously mentioned, we're excited to announce the closing this week of a new $40 million investment by CarbonDirect Capital, a globally recognized investor in the energy transition space. This additional capital bolsters our balance sheet and strengthens our financial flexibility. As noted in our 10Q, this $40 million was invested pursuant to a convertible note purchase agreement, which contemplates one or more closings for up to $150 million of convertible notes. We continue to seek additional financing under the convertible note purchase agreement from certain accredited investors with whom we have a pre-existing substantive relationship.

Speaker Change: As Jennifer previously mentioned, we're excited to announce the closing this week of a new $40 million investment by CarbonDirect Capital, a globally recognized investor in the energy transition space. This additional capital bolsters our balance sheet and strengthens our financial flexibility.

Jennifer Holmgren: Second, we continue to execute on all key aspects of our business, including bio-refining projects, joint development and contract research engagements, and carbon smart initiatives. Let me give you a few examples. One, our carbon dioxide conversion project would empty be seen and resulted in equipment revenue associated with the order of longer items, enhancing our confidence that this power to ethanol project will enter the construction phase during the second half of this year.

Speaker Change: As noted in our 10Q, this $40 million was invested pursuant to a convertible note purchase agreement which contemplates one or more closings for up to $150 million of convertible notes.

Speaker Change: we continue to seek additional financing under the convertible note purchase agreement from certain accredited investors with whom we have a preexisting substive relationship

Geoffrey Trukenbrod: On now quickly touch on our recent form 8-K related to a lawsuit we filed in connection with what we consider a breach number four purchase agreement for FPA. There's a detailed discussion contained in our Form 10-Q file today, but I will provide you with a few high-level details here. Essentially, it is our position that a shareholder breaches the FPA by selling lands detect shares that it was obligated to hold for the benefit of lands detect under the FPA. We are alleging that if, in fact, shares were sold by the shareholder, lands detect as entitled to receive from the shareholder approximately $10.16 per share sold for the terms of the FPA.

Geoffrey Trukenbrod: I'll now quickly touch on our recent Form 8K related to a lawsuit we filed in connection with what we consider a breach of our forward purchase agreement, or FPA. There is a detailed discussion contained in our Form 10-Q file today, but I will provide you with a few high-level details here.

Speaker Change: I'll now quickly touch on our recent Form 8K related to a lawsuit we filed in connection with what we consider a breach of our Forward Purchase Agreement, or FPA.

Jennifer Holmgren: Additionally, we moved several new projects to early stage engineering across multiple feedstocks and geographies showing the flexibility of our technology. Adding to that, our carbon smart business continued to be active with existing customers such as Lulu Lemon, Ariya and Cody bringing new products online and our commercially available carbon smart yarns, becoming part of brand supply chains rather than only being used in limited one-off collections. IKEA recently disclosed a long-step collaboration with us to develop new manufacturing routes to the products from industry emissions, specifically focusing on polypropylene materials, and we also completed our first pure-play carbon smart fuel sales.

Speaker Change: there's a detailed discussion contained in our form ten -q file today i will provide you with a few high-level details here

Geoffrey Trukenbrod: Essentially, it is our position that a shareholder breached the FPA by selling LanzaTech shares that it was obligated to hold for the benefit of LanzaTech under the FPA. We are alleging that if, in fact, shares were sold by the shareholder, LanzaTech is entitled to receive from the shareholder approximately $10.16 per share sold per the terms of the FPA. The shareholder, in turn, has notified us that its position is that they were entitled to accelerate the maturity date of the contract given our shares had traded under $3 for 50 out of the 60 trading days period prior to July 2nd, 2024.

Speaker Change: Essentially, it is our position that a shareholder breached the FPA by selling LanzaTech shares that it was obligated to hold for the benefit of LanzaTech under the FPA.

Speaker Change: We are alleging that if, in fact, shares were sold by the shareholder, Planned Protective is entitled to receive from the shareholder approximately $10.16 per share sold per the terms of the FPA.

Geoffrey Trukenbrod: The shareholder, in turn, has notified us that its position is that they were entitled to accelerate maturity data to the contract, given our shares had traded under $3 for 50 out of the 60 trading days. period, prior to July 2nd, 2024. And therefore, for the contract terms, LanzaTech includes the shareholder approximately $7.5 million in maturity consideration, which can be satisfied in cash or shares, and approximately $2.5 million in share consideration payable in cash. It's important to note that, as our position, the shareholder breaches the contract before the maturity date would be accelerated, and the shareholder sold its shares without complying with the procedures in the FPA, which includes paying LanzaTech the corresponding amount per share to which it's entitled.

Speaker Change: The shareholder, in turn, has notified us that its position is that they were entitled to accelerate the maturity date of the contract, given our shares had traded under $3 for 50 out of the 60 trading days period prior to July 2, 2024.

Geoffrey Trukenbrod: And therefore, per the contract terms, LanzaTech owes the shareholder approximately $7.5 million in maturity consideration, which can be satisfied in cash or shares, and approximately $2.5 million in share consideration, payable in cash. It's important to note that, in our position, the shareholder breached the contract before the maturity date could be accelerated, and the shareholder sold its shares without complying with the procedures in the FBA, which includes paying LanzaTech the corresponding amount per share to which it is entitled.

Speaker Change: And therefore, per the contract terms, LanzaTech owes this shareholder approximately $7.5 million in maturity consideration, which can be satisfied in cash or shares, and approximately $2.5 million in share consideration, payable in cash.

Jennifer Holmgren: Putting the right licensing structure, partners in supply chain infrastructure in place required significant effort, through a very happy coverage this milestone. These direct fuel sales build on our existing carbon smart business that requires our ethanol to undergo further processing or purification before being supplied to our textile, chemical and plastics customers. Overall, we're pleased to see such tremendous progress this quarter in our based business.

Speaker Change: It's important to note that as our position, the shareholder breached the contract before the maturity date could be accelerated, and the shareholder sold its shares without complying with the procedures in the FBA, which includes paying LanzaTech the corresponding amount per share to which it is entitled.

Geoffrey Trukenbrod: Therefore, we believe that we are entitled to significant damages, and because we do not view the maturity date notice as valid, LanzaTech does not believe that any payments are owed to the shareholder pursuant to the maturity acceleration or its later notice of termination of the FPA due to lack of clarity. We plan to pursue our claims vigorously, but cases like this can take some time to conclude. We will not be commenting on this ongoing litigation, but we wanted to make the details of this case abundantly clear from the start. We're taking the situation very seriously.

Geoffrey Trukenbrod: Therefore, we believe that we are entitled to significant damages, and because we do not view the maturity date notice as valid, LanzaTech does not believe that any payments are owed to the shareholder pursuant to the maturity acceleration, or to later notice a termination of the FPA due to lack of payment. We plan to pursue our claims vigorously, but cases like this can take some time to conclude. We will not be commenting on sign-going litigation, but we wanted to make the details of this case abundantly clear from the start. We're taking the situation very seriously.

Speaker Change: Therefore, we believe that we are entitled to significant damages, and because we do not view the maturity date notice as valid, LanzaTech does not believe that any payments are owed to the shareholder pursuant to the maturity acceleration or its later notice of termination of the FPA due to lack of payment.

Jennifer Holmgren: Moving to the third highlight of this quarter, we increase our ownership and landscape at nearly two thirds to 37% up from 23% without the need for any capital contribution for lands attack. Land success and the exciting work it is doing to advance the sustainable aviation fuel market continues to show substantial progress on multiple fronts while benefiting from continued significant macro tailwinds.

Speaker Change: we plan to pursue our claims as igorously but cases like this can takekes some time to conclude we will not be commenting on signgoing litigation but we wanted to make the details of this case abundantly clear from the start we're taking a situation very seriously

Geoffrey Trukenbrod: Now, I'd like to take some time and discuss the remainder of 2024 and what we see from here. As Jennifer mentioned, we're reaffirming our full year 2024 revenue guidance of $90 million, $205 million, which at the midpoint represents approximately 55% revenue growth of 2023. We're also reaffirming the adjusted EBITDA of negative $65 million for full year 2024, which at the midpoint represents an improvement of approximately 25%. As we look at how projects are progressing and how revenue projections are broken down between the third quarter and fourth quarters of this year, we expect revenue to be heavily weighted to the fourth quarter, with third quarter to 2024 revenue expected to be similar to second quarter to 2024.

Geoffrey Trukenbrod: Now, I'd like to take some time and discuss the remainder of 2024 and what we see from here. As Jennifer mentioned, we're reaffirming our full year 2024 revenue guidance of $90 million to $105 million, which at the midpoint represents approximately 55% revenue growth over 2023. We're also reaffirming adjusted EBITDA of negative 65 to negative 55 million dollars per full year 2024, which at the midpoint represents an improvement of approximately 25%. As we look at how projects are progressing and how revenue projections are broken down between the third quarter and fourth quarters of this year, we expect revenue to be heavily weighted to the fourth quarter, with third quarter 2024 revenue expected to be similar to second quarter 2024.

Speaker Change: Now, I'd like to take some time and discuss the remainder of 2024 and what we see from here.

Geoffrey Trukenbrod: As Jennifer mentioned, we're reaffirming our full year 2024 revenue guidance of $90 million to $105 million, which at the midpoint represents approximately 55% revenue growth over 2023. We're also reaffirming adjusted EBITDA of negative 65 to negative 55 million dollars for full year 2024, which, at the midpoint, represents an improvement of approximately 25%. As we look at how projects are progressing and how revenue projections are broken down between the third quarter and fourth quarter of this year, we expect revenue to be heavily weighted to the fourth quarter, with third quarter 2024 revenue expected to be similar to second quarter 2024.

Speaker Change: As Jennifer mentioned, we're reaffirming our full year 2024 revenue guidance of $90 million to $105 million, which at the midpoint represents approximately 55% revenue growth over 2023.

Jennifer Holmgren: Fourth, we're excited to announce a $40 million investment from a new investor, carbon direct capital. This certificate capital raise will support our path to profitability and support our working capital needs as we further scale our business. And fifth, we continue to expect revenue for the year to be between 90 to 105 million dollars with second-health revenue being heavily weighted to the fourth quarter. Jeff will provide more details on our latest financial outlook, including greater detail on the breakdown between the third and fourth quarter in his remarks.

Speaker Change: We're also reaffirming adjusted EBITDA of negative 65 to negative 55 million dollars for full year 2024, which, at the midpoint, represents an improvement of approximately 25 percent.

Speaker Change: As we look at how projects are progressing and how revenue projections are broken down between the third quarter and fourth quarters of this year, we expect revenue to be heavily weighted to the fourth quarter, with third quarter 2024 revenue expected to be similar to second quarter 2024.

Geoffrey Trukenbrod: We expect several projects to progress to the final investment decision stage of their development process in the fourth quarter. This unlocks equipment revenues as these projects progress into construction. The team is very focused on progressing these projects, but if timing slips into next year, then it can negatively impact our ability to achieve our guidance. We expect the quarterly impact of project timing will lessen over time as we continue to scale our recurring revenue. We remain focused on reaching profitability as soon as reasonably possible. Our path to profitability is simple. It is based on continued growth of revenue and growth's profit, while diligently controlling our costs.

Geoffrey Trukenbrod: We expect several projects to progress to the final investment decision stage of our development process in the fourth quarter. This unlocks equipment revenues as these projects progress into construction. The team is very focused on progressing these projects, but if timing slips into next year, then it can negatively impact our ability to achieve our goals.

Geoffrey Trukenbrod: We expect several projects to progress to the final investment decision stage of their development processes in the fourth quarter. This unlocks equipment revenues as these projects progress into construction. The team is very focused on progressing these projects, but if timing slips in the next year, then it can negatively impact our ability to achieve our goals. We expect the quarterly impact of project timing to lessen over time as we continue to scale our recurring revenue.

Speaker Change: We expect several projects to progress to the final investment decision stage of our development process in the fourth quarter. This unlocks equipment revenues as these projects progress into construction.

Jennifer Holmgren: Now, for a few more details on these highlights, I mentioned a new project with NPPC, which is India's largest power generation utility company. NPPC and Jackson Green, their engineering procurement and construction partner, as planning to use our second generation bioreactor to biorefine carbon dioxide with green hydrogen to produce valuable shields, chemicals, and raw materials. Having proven, we can use carbon dioxide in every fine use setting within general cooperation. We're expanding that ability with NTPC to a feed-soc stream where CO2 is the only carbon source.

Speaker Change: The team is very focused on progressing these projects, but if timing slips into next year, then it can negatively impact our ability to achieve our goals.

Speaker Change: We expect the quarterly impact of project timing will lessen over time as we continue to scale our recurring revenue.

Geoffrey Trukenbrod: We remain focused on reaching profitability as soon as reasonably possible. Our path to profitability is simple. It is based on continued growth of revenue and gross profit while diligently controlling our costs. And that's exactly what you can count on from us. With that, I'll turn the call back to Jennifer for some closing remarks before we open the call for Q&A.

Speaker Change: we remain focused on reaching profitability as soon as reasonably possible our path the profitability is simple and is based on continued growth of revenue and gross profit while diligently controlling our costs andthat's exactly what you count from us

Geoffrey Trukenbrod: Not exactly what you count on for us.

Jennifer Holmgren: With that, I'll turn the call back to Jennifer for some closing remarks before we open the call for Q&A.

Speaker Change: With that, I'll turn the call back to Jennifer for some closing remarks before we open the call for Q&A. Jennifer?

Jennifer Holmgren: Thank you, Jeff. While many countries are already moving to the future with carbon-free power, we still need a sustainable source of carbon for essential products like textiles, packaging, consumer goods, food, and fuels. Carbon is not the enemy, but an essential part of our daily lives. The issue is how we source, utilize, and dispose of the carbon we use. Landsat that has the flexibility to deliver solutions to address this challenge. Efficiency is key. We must make the most set of every carbon molecule. Initiatives like Project Secure will enable our customers to produce more products and drive more revenue, while reducing the need to buy more fossil feed.

Jennifer Holmgren: While many countries are already moving to a future with carbon-free power, we still need a sustainable source of carbon for essential products like textiles, packaging, consumer goods, food, and fuel. Carbon is not the enemy, but an essential part of our daily lives. The issue is how we source, utilize, and dispose of the carbon we use. LanzaTech has the flexibility to deliver solutions to address this challenge.

Jennifer: thank you just

Speaker Change: While many countries are already moving to a future with carbon-free power, we still need a sustainable source of carbon for essential products like textiles, packaging, consumer goods, food, and fuels.

Jennifer Holmgren: In fact, LanzaTech can convert CO2 with the addition of hydrogen, I really made from green energy in our carbon capture and utilization platform. NTPC's carbon recycling facility is designed to showcase a readiness of LanzaTech's technology for regions that are transforming the power sector and in turn enabling the widespread production of sustainable fuels, chemicals and raw materials from CO2.

Jennifer Holmgren: Carbon is not the enemy but an essential part of our daily lives. This is exactly what LanzaTech offers its customers and how we intend to help develop a new circular carbon economy. A cornerstone of a strong circular economy is that companies have to operate within it profitably.

Speaker Change: Carbon is not the enemy, but an essential part of our daily lives. The issue is how we source, utilize, and dispose of the carbon we use. LanzaTech has the flexibility to deliver solutions to address this challenge.

Jennifer Holmgren: We must make the most out of every carbon molecule. Initiatives like Project Secure will enable our customers to produce more products and drive more revenue while reducing the need to buy more fossil feedstock. This will enable our economy to keep more fossil carbon in the ground. The circular economy prioritizes resource efficiency, waste reduction, and sustainable practice. This not only keeps materials in use for as long as possible, minimizing the strain on our planet's resources, but it drives maximum value from every carbon molecule.

Speaker Change: Efficiency is key. We must make the most out of every carbon molecule. Initiatives like Project Secure will enable our customers to produce more products and drive more revenue, while reducing the need to buy more fossil feedstocks.

Jennifer Holmgren: This is an inspiring example of the elusive power to X majorial. As mentioned earlier, we continue to realize the value of our LanzaTech shareholding through our increased ownership in and continued collaboration with LanzaTech. By way of background, this increase in LanzaTech ownership was always part of the plan that we put in place for the commercialization of the alcohol to jet or APJ process when we spun LanzaTech off into a standalone business four years ago.

Jennifer Holmgren: Stucks. This will enable our economy to keep more fossil carbon in the ground. The circular economy prioritizes resource efficiency, waste reduction, and sustainable practices. This not only keeps materials in use for as long as possible, minimizing the strain on our planet's resources, but it tries to maximize maximum value from every carbon molecule. This is exactly what LanzaTech offers its customers and how we intend to help develop a new circular carbon economy. A cornerstone of a strong circular economy said companies have to operate within it profitably. We at LanzaTech are steadfast and are focused to drive the profitability as quickly as possible.

Speaker Change: This will enable our economy to keep more fossil carbon in the ground.

Speaker Change: the circular economy prioritizes resource suefficiency waste reduction and sustainable practices

Speaker Change: This not only keeps materials in use for as long as possible, minimizing the strain on our planet's resources, but it drives maximum value from every carbon molecule.

Jennifer Holmgren: This is exactly what LanzaTech offers its customers and how we intend to help develop a new circular carbon economy. A cornerstone of a strong circular economy is that companies have to operate within it profitably. We at LanzaTech are steadfast in our focus on driving to profitability as quickly as possible. I want to close by coming back to the five key takeaways I outlined at the outset of the call.

LanzaTech: This is exactly what LanzaTech offers its customers and how we intend to help develop a new circular carbon economy.

Speaker Change: A cornerstone of a strong circular economy is that companies have to operate within it profitably. We at LanzaTech are steadfast in our focus to drive to profitability as quickly as possible.

Jennifer Holmgren: We at LanzaTech are steadfast in our focus to drive to profitability as quickly as possible. I want to close by coming back to the five key takeaways I outlined at the outset of the call. Fourth, we announced a $40 million investment from a new investor, CarbonDirect Capital, which will help fund future growth and working capital as we scale our business. And, fifth and final, we reaffirmed our financial guidance for the full year, which includes 2024 revenue expectations of $90 to $105 million.

Jennifer Holmgren: I want to close by coming back to the five key takeaways I outlined at the outset of the call. First, we delivered strong results of our head of expectations for the quarter with revenue growth of 35% near over year. Second, we continue to sign new contracts, add new customers, and progress projects through our bios finding development pipeline. And I am especially excited about the commencement of our carbon smart fuel sales. Third, we increased our ownership and landscape by 14% up to 37% from 23%. Fourth, we announced a $40 million investment from a new investor, Carbon Direct Capital, which will help fund future growth and working capital as we scale our business.

Speaker Change: I want to close by coming back to the five key takeaways I outlined at the outset of the call.

Jennifer Holmgren: First, we delivered strong results that were ahead of expectations for the quarter, with revenue growth of 35% year-over-year. Second, we continue to sign new contracts, add new customers, and progress projects through our biorefining development pipeline. And I am especially excited about the commencement of our Carbon Smart Fuel. Third, we increased our ownership in LanzaTech by 14%, up to 37% from 23%. Fourth, we announced a $40 million investment from a new investor, CarbonDirect Capital, which will help fund future growth and working capital as we scale our business. CarbonDirect is a leading investor in the carbon management ecosystem, and they have sophisticated expertise in the scale-up of carbon abatement solutions.

Speaker Change: First, we delivered strong results that were ahead of expectations for the quarter, with revenue growth of 35% year-over-year.

Jennifer Holmgren: Jet Zero Australia is developing Australia's first ethanol to sustainable aviation fuel plan and LanzaTech's freedom-pine fuels facility located in South Putam Georgia is the reference plan for the project. We expect to receive the other two tranches of shares as LanzaTech further commercially sub-licenses our technology which is protected to result in an ownership fake and LanzaTech above 50% subject to delusion from potential LanzaTech equity financing events. Given the projects and opportunities LanzaTech is working on, we have a line of sight to upcoming sub-licensing events and expect an additional equity tranche within the next six months with the third expected during 2025.

Speaker Change: Second, we continue to sign new contracts, add new customers, and progress projects through our biorefining development pipeline, and I am especially excited about the commencement of our Carbon Smart Fuel Sales.

Speaker Change: Third, we increased our ownership in LanzaTech by 14%, up to 37% from 23%.

Speaker Change: Fourth, we announced a $40 million investment from a new investor, Carbon Direct Capital, which will help fund future growth in working capital as we scale our business.

Jennifer Holmgren: Carbon Direct is a leading investor in the carbon management ecosystem, and they have sophisticated expectations to scale up of carbon abatement solutions. We are very pleased to welcome them on this journey with us. And fifth and final, will we affirm their financial guidance for the full year, which includes 2024 revenue expectations of 90 to 105 million. The team is very focused on getting several sizable projects across the FID line in the back half of this year, and we look forward to updating you on our progress in the coming months. Our financial objectives have been and continue to be reaching profitability and from there becoming free cash or positive.

Speaker Change: CarbonDirect is a leading investor in the carbon management ecosystem and they have sophisticated expertise in the scale-up of carbon abatement solutions. We are very pleased to welcome them on this journey with us.

Jennifer Holmgren: We are very pleased to welcome them on this journey with us. And, fifth and final, we reaffirmed our financial guidance for the full year, which includes 2024 revenue expectations of $90 to $105 million. The team is very focused on getting several sizable projects across the FID line in the back half of this year, and we look forward to updating you on our progress in the coming months. Our financial objectives have been and continue to be reaching profitability, and from there, becoming free cash flow positive. The way we get there is by executing on projects, deploying licenses, and being diligent with cost management. And that is exactly what we're doing. With that, let's open the call up for questions.

Speaker Change: and system final will we affirmed their financial guidance for the full year which include two thousand and twenty-four revenue expectations of ninety two hundred and five million

Jennifer Holmgren: The team is very focused on getting several sizable projects across the FID line in the back half of this year, and we look forward to updating you on our progress in the coming months. Our financial objectives have been and continue to be reaching profitability and, from there, becoming free cash flow positive. The way we get there is by executing on projects, deploying licenses, and being diligent with cost management, and that is exactly what we're doing. With that, let's open the call to questions.

Speaker Change: The team is very focused on getting several sizable projects across the FID line in the back half of this year, and we look forward to updating you on our progress in the coming months.

Speaker Change: Our financial objectives have been and continue to be reaching profitability and from there becoming free cash flow positive.

Jennifer Holmgren: Lens. Lensaget is growing quickly. Commercially, LanzaTech and Lensaget are actively collaborating on several projects whereby commercial partners are expected to deploy both the LanzaTech and Lensaget platforms in order to convert local waste resources to drop in sustainable radiation fuel. The sustainable radiation fuel produced through the combined processes is capable of reducing aviation emissions by at least 85 percent, depending in part on the waste-based feedstock selection. Let's be clear that every carbon-rich waste feedstock from solid carbon, including carbon-locked in units of a solid waste or biomass, industrial offgasters, including those rich in CO2, to carbon and biogas, can all be converted to SaaS in this way.

Jennifer Holmgren: The way we get there is by executing on projects, deploying licenses, and being diligent with cost management, and that is exactly what we're doing.

Speaker Change: The way we get there is by executing on projects, deploying licenses, and being diligent with cost management, and that is exactly what we're doing. With that, let's open the call up for questions.

Operator: Thank you. And at this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. We will pause for a moment to allow questions to queue. And we will take our first question from Jeffrey Campbell with Seaport Research Partners.

Operator: With that, let's open the call up for questions. Thank you. And at this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any time by pressing star two, and we will pause for a moment to allow questions to queue.

Speaker Change: Thank you. And at this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star 2. And we will pause for a moment to allow questions to queue.

Jeffrey Campbell: And we will take our first question from Jeffrey Campbell with C-Port Research Partners. Good morning. This is a quarter that could produce dozens of questions, but I'll remember myself to four if I'm there. The first one is... As our other entity is showing interest in your polypropylene effort.

Speaker Change: And we will take our first question from Jeffrey Campbell with Seaport Research Partners.

Jeffrey Campbell: Good morning. This is a quarter that could have produced dozens of questions, but I'll limit myself to four, if I may. The first one is:

Jennifer Holmgren: Good morning. This is a quarter that could be interesting.

Jeffrey Campbell: Good morning. This is a quarter that could...

Jeffrey Campbell: produce dozens of questions but I'll limit myself to four if I may. The first one is, are other entities showing interest in your polypropylene effort? Does the incipient work with IKEA limit Lanza's ability to work with other interested parties?

Jeffrey Campbell: Are other entities showing interest in your polypropylene effort? Does the incipient work with IKEA limit Lanza's ability to work with other interested parties?

Jennifer Holmgren: The robust pipeline of opportunities that exists for this type of collaborative waste-based fuel solution is expected to be a significant demand driver for our bio-refining business and a tea pathway for LanzaTech to license its technology. To facilitate delivering these projects, LanzaTech and Lensaget launched our joint offering called Circulaire. Circulaire is a coordinated commercial offering and powerful end-to-end solution utilizing LanzaTech scabs from the patient platform. In conjunction with LanzaTech's APJ platform, to produce sustainable radiation fuel and renewable diesel from a wide range of waste feedstocks.

Jennifer Holmgren: Does the Incident work with IKEA Limit Lancers' ability to work with other industry parties?

Jennifer Holmgren: Hi, Jeff. Thanks for limiting your questions to four, and that is a great start with. There is no limitation on who we can work with.

Jennifer Holmgren: Hi Geoff. Thanks for limiting your questions to four, and that is a great one to start with. There is no limitation on who we can work with. The work with IKEA was to develop the capability because they win if there is sufficient interest to build commercial facilities. And as you can imagine, with polypropylene, there is a lot of it. For example, it's critical in the medical sector; it is critical in the automotive sector.

Speaker Change: Hi Jeff, thanks for limiting your...

Speaker Change: questions before, and that is a great one to start with.

Speaker Change: There is no limitation on who we can work with. The work with IKEA was to develop the capability, because they win if there is sufficient interest to build commercial facilities, so, and as you can imagine with polypropylene, there's a lot of interest.

Jennifer Holmgren: The work we IKEA was to develop the capability because they win if there is sufficient interest to build commercial facilities. As you can imagine, with polypropylene, there's a lot of interest. For example, it's critical in the medical sector; it is critical in the automotive sector, and so we're talking to quite a number of partners who are interested in the off-take. Even more exciting, we're talking to a number of partners who are really interested in licensing the technology so they can use our new bacteria to make isopropanol that can then be converted further to propylene and then polypropylene.

Jennifer Holmgren: For example, it's critical in the medical sector; it is critical in the automotive sector. And so we're talking to quite a number of partners who are interested in the offtake. And even more exciting, we're talking to a number of partners who are really interested in licensing the technology so they can use our new bacteria to make isopropanol that can then be converted further to propylene and then polypropylene. So there is tremendous interest, and there is absolutely no limitation on us.

Jennifer Holmgren: Stealing SaaS for urgency is critically important for aviation, a heart-to-a-bake sector, representing 3% of today's global CO2 footprint. In 2023, a near-point 2% of global aviation fuel volumes were sapped, but this is expected to jump to 1% in 2026 and to 10% to approximately 10 billion gallons in 2030. The enormous scale up of the faff industry, necessary to meet this demand, is also benefiting from recent regulatory tailwinds around the world that support the use of the variety of waste feedstocks to meet that end.

Speaker Change: For example, it's critical in the medical sector, it is critical in the automotive sector, and so we're talking to quite a number of partners who are interested in the offtake. And even more exciting, we're talking to a number of partners who are really interested in licensing the technology.

Jennifer Holmgren: And so we're talking to quite a number of partners who are interested in the offtake. And even more exciting, we're talking to a number of partners who are really interested in licensing the technology so they can use our new bacteria to make isopropanol that can then be converted further to propylene and then polypropylene. So there is tremendous interest, and there is absolutely no limitation on us.

Speaker Change: So they can use our new bacteria to make isopropanol that can then be converted further to propylene and then polypropylene. So there is tremendous interest and there is absolutely no limitation on us.

Jennifer Holmgren: There is tremendous interest, and there is absolutely no limitation on us.

Jeffrey Campbell: Okay, great. I was wondering if you could add a little bit of color to the specific ethanol licensing that you've now achieved for Carbon Smart, and with that in mind, which markets do you feel are now more open to Lanza as a result?

Jennifer Holmgren: Okay, great. I was wondering if you could add a little bit of color to these specific ethanol licensing that you've now achieved for Carbon Smart and with that in mind, which markets do you feel are now more open to Lanza as a result? And you're talking about the fuel licenses and so from the first ethanol sales with our new licenses went into the China market. We are looking at other markets in Southeast Asia as well.

Speaker Change: Okay, great. I was wondering if you could add a little bit of color to the specific ethanol licensing that you've now achieved for CarbonSmart and with that in mind, which markets do you feel are now more open to Lanza as a result?

Jennifer Holmgren: This supports rapid build-out of technologies at LanzaTech that can flexibly use locally available feedstocks to suit regional conditions. Circulaire builds on the unanniable momentum behind scaling SaaS production globally and a large opportunity set available to our two companies.

Jennifer Holmgren: And you're talking about fuel licenses. And so the first ethanol sales with our new licenses went into China. We are looking at other markets in Southeast Asia as well. The one license that still remains is an ISCC certification that enables us to trade into Europe. That one we don't have yet.

Speaker Change: And you're talking about the fuel licenses and so from the first ethanol sales with our new licenses went into the China market.

Speaker Change: We are looking at other markets in Southeast Asia as well.

Jennifer Holmgren: The one license that still remains is an ISCC certification that enables us to trade into Europe. That one we don't have yet, and so our fuel sales right now are absolutely focused on China. And as you can imagine, it was quite a journey to get all of the licenses and seeing all of the permits and all of the infrastructure to enable us to do that. So we're now in a smooth path and made our first sale.

Jennifer Holmgren: You'll hear more about Circulaire in the coming months as we expect to announce some important joint projects with LanzaTech.

Jennifer Holmgren: I also want to take a few moments to give an update on project secure and major initiative which we announced in March of this year. By way of background, LanzaTech and our partner technique energies were selected to receive a $200 million award from the D.U.S. Department of Energy's Office of Clean Energy Demonstrations. The award is for the construction of a new LanzaTech gas foundation facility which will be integrated with technique energies, hummingbird ethanol to ethylene technology and an existing steam cracker in the D.U.S, scope, of course.

Jeffrey Campbell: And so our fuel sales right now are absolutely focused on China. And as you can imagine, it was quite a journey to get all of the licensing, all of the permits, and all of the infrastructure to enable us to do that. But we're now on a smooth path and have made our first sale.

Speaker Change: all of the lic and seeing all of the permits and all of the infrastructure to enable us to do that so we're now in a smooth path and made our first sale

Jennifer Holmgren: Okay, great. Yeah, earlier in your prepared remarks, you referenced green hydrogen with regard to the Indian project. I was just wondering, is it possible to arrive at an acceptable carbon intensity score for a Lanza CO2 hydrogen project without green hydrogen?

Jennifer Holmgren: Okay, great. Earlier in your prepared remarks, you referenced hopefully green hydrogen with regard to the Indian project. I was just wondering, is it possible to arrive at an acceptable carbon intensity score for a Lanza CO2 hydrogen project without green hydrogen?

Speaker Change: Okay, great. Yeah, earlier in your prepared remarks, you referenced hopefully green hydrogen with regard to the Indian project. I was just wondering, is it possible to arrive at an acceptable carbon intensity score for a Lanza CO2 hydrogen project without green hydrogen?

Jennifer Holmgren: Importantly, this is not an R&D project. The R&D and related investments are complete. The funds from this award will aid in reducing the capital expense for this first-of-the-kind commercial facility. Project Secure represents a highly reputable project opportunity set for LanzaTech, as there are more than 370 ethylene steamcrackers across the world and are decarbonizing solution, efficiently bolts on through that existing infrastructure. On the feedstock front, no new fossil feedstock is brought in to produce more ethylene.

Jennifer Holmgren: So I think gray hydrogen will make it difficult conversion with our process or anybody else's process of CO2 with gray hydrogen will make it very difficult to show a reduction. However, blue hydrogen will work, and green hydrogen will also work. The reason the NTPC project is so exciting for us is that NTPC is really accelerating their transition to renewable power and have started also to focus on green hydrogen. So blue works, green works, and our partner is already doing a lot of work to transition to renewable power. So we know the electrons will certainly be available to green electrons, and it's just a question of building out the green electrolyzers as well.

Jeffrey Campbell: So I think gray hydrogen will make it difficult. Conversion with our process or anybody else's process of CO2 with gray hydrogen will make it very difficult to show a reduction.

Jennifer Holmgren: So I think gray hydrogen will make it difficult. Conversion with our process or anybody else's process of CO2 with gray hydrogen will make it very difficult to show a reduction.

Speaker Change: So I think gray hydrogen will make it difficult. Conversion with our process or or anybody else's process of CO2

Speaker Change: with gray hydrogen will make it very difficult to show a reduction.

Jennifer Holmgren: However, blue hydrogen will work, and green hydrogen will also work. The reason the NTPC project is so exciting for us is that NTPC is really accelerating its transition to renewable power and has started to focus on green hydrogen. So blue works, green works, and our partner is already doing a lot of work to transition to renewable power. So we know the electrons will certainly be available, the green electrons, and it's just a question of building out the green electrolyzers as well.

Jennifer Holmgren: However, blue hydrogen will work, and green hydrogen will also work. The reason the NPPC project is so exciting for us is that NPPC is really accelerating their transition to renewable power and has started to focus on green hydrogen. So blue works, green works, and our partner is already doing a lot of work to transition to renewable power. So we know the electrons will certainly be available, the green electrons, and it's just a question of building out the green electrolyzers as well.

Speaker Change: However, blue hydrogen will work.

Jennifer Holmgren: and Green Hydrogen will also work.

Jennifer Holmgren: The reason the NTPC project is so exciting for us is that NTPC is really accelerating their transition to renewable power and have started also to focus on green hydrogen. So Blue Works, Green Works, and our partner is already

Jennifer Holmgren: Rather we're generating more ethylene for the producer from what would have been their shield to waste emissions. Ethylene 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 foam and jet fuel and is expected to be a $200 billion market by 2030. However, ethylene production is also made your source of emissions globally responsible for the release of over 500 million tons of carbon dioxide into the atmosphere per year and it is in need of carbon abatement solutions like what LanzaTech provides.

Speaker Change: doing a lot of work to transition to renewable power, so we know the electrons will certainly be available, the green electrons, and it's just a question of building out the green electrolyzers as well.

Jennifer Holmgren: Okay, and then my last one, can you extend on what the promotional advantages or the cost savings are in the circular joint or partnership or whatever we call it? What is that offer to Lanza and LanzaJep? It's not already available to them. Yeah, that is actually a great question. We have worked as independent companies in developing projects that go from waste all the way through to sustainable radiation fuel. And, as you can imagine, that slows down the process.

Jennifer Holmgren: Okay, and then my last one. Can you expand on what the promotional advantages or the cost savings are of the circular joint?

Jeffrey Campbell: Okay, and then my last one. Can you expand on what the promotional advantages or the cost savings are in the circular joint? Partnership, or whatever we call it? What does that offer to Lanza and LanzaJeff? It's not already available.

Speaker Change: Okay, and then and my last one, can you expand on what the promotional advantages or the cost savings are in the circular joint?

Speaker Change: or partnership or whatever we call it, what does that offer to Lanza and LanzaJet that's not already available to them?

Jennifer Holmgren: Yeah, that is actually a great question. We have worked as independent companies in developing projects that go from waste all the way through to sustainable aviation fuel. And as you can imagine, that slows down the process. And so what we're agreeing to do here is to have a single phase for the customer, so that the agreements, the proposals, all of the techno-economics are all done in a single phase. That will make it go much, much faster.

Speaker Change: Yeah, that is actually a great question. We have worked as independent companies in developing projects that go from waste all the way through to

Jennifer Holmgren: With our combined solution, we take those emissions and convert them into valuable product. This maximizes the use of the carbon molecules going into that facility enabling our customer to increase the profits by being more resource sufficient.

Speaker Change: to Sustainable Aviation Fuel. And as you can imagine, that slows down the process. And so what we're agreeing to do here is to have a single phase to the customer.

Jeffrey Campbell: So basically, what we're doing is committing to faster project development. The other thing that I think is important is that by thinking of it as a joint offering, the additional thing that we'll be able to do is really do much more on integration. If you look at our technology, it's the technique right now, front end, the ethanol to ethylene, the LanzaTech piece, the LanzaTech piece, I'm sorry, the LanzaTech and the LanzaJet. By doing it all as one phase for the customer, we're also going to work very, very hard to do better mass balance, better heat integration, you know, remove redundant equipment.

Speaker Change: SoCAD, the agreements, the proposals, all of the techno-economics are all done

Jennifer Holmgren: We're currently working collaboratively with the theory and the agreements for the project that anticipate completing their work contracting process in the coming months with the goal of receiving initial award funds by the end of 2024.

Jennifer Holmgren: with a single face. That will make it go much, much faster. So basically what we're doing is committing to faster project development. The other thing that I think is important is by thinking of it as a joint offering, the additional thing that we'll be able to do is really do much more on integration.

Jennifer Holmgren: The other thing that I think is important is by thinking that I've been showing to offering the additional thing that we'll be able to do is really do much more in integration. If you look at our technology, it's the technique right now from then, ethanol to ethylene, the LanzaTech teams, the LanzaTech teams. I'm sorry, the LanzaTech and the LanzaTech, by doing it all as one face to the customer, we're also going to work very, very hard to do better mass balance, better heat integration. We move redundant equipment. All of these things will allow us to also get to a more cost-effective offering.

Speaker Change: If you look at our technology...

Speaker Change: it's the technique right now from den ethanol ine the lamage just piece the landslook at these

Speaker Change: By doing it all as one face to the customer, we're also going to work very, very hard to do better mass balance, better heat integration.

Speaker Change: you know, remove redundant equipment. All of these things will allow us to also get to a more cost-effective offering. So the first stage will be just what the customer sees. The second phase will be how we integrate to make

Jennifer Holmgren: Today, 100% of new propylene in use worldwide is made from petrochemicals, replacing all of the world's fossil propylene production with carbon capture and utilization made polypropylene would reduce carbon emissions by an estimated 700 million times per year or more. The global propylene market size was a little over 120 billion in 2022 and is expected to extend at a compound annual growth rate or cager of close to 5% from 2023 to 2030.

Jeffrey Campbell: All of these things will also allow us to get to a more cost-effective offering. So the first stage will be just what the customer sees. The second phase will be how we integrate to make everything much more profitable and sustainable for the customer.

Jennifer Holmgren: So the first stage will be just what the customer sees.

Jennifer Holmgren: The second phase will be how we integrate to make everything much more profitable and sustainable for the customer. That's right.

Speaker Change: everything much more profitable and sustainable for the customer.

Jennifer Holmgren: Great, thank you; I appreciate it.

Jeffrey Campbell: Thank you.

Jeffrey Campbell: I appreciate it. Thank you.

Speaker Change: Thank you. I appreciate it.

Thomas Meric: Thank you. And we will take our next question from Thomas Meric with Jannie Montgomery.

Thomas Merrick: And we will take our next question from Thomas Merrick with Janie Montgomery. Good morning. Thanks for the time and for taking the questions.

Jennifer Holmgren: Thank you. And we will take our next question from Thomas Meric with Jannie Montgomery.

Thomas Meric: Good morning. Thanks for the time and for taking the questions. Just a few for me, maybe tagging off of Geoff's on Jackson Green, curious just from a different angle about the second generation bioreactor. Is there anything about that second generation reactor that helps to make this project pencil out, or is it just kind of a natural progression and timing matchup?

Speaker Change: Good morning. Thanks for the time and for taking the questions.

Jennifer Holmgren: Just up to you for me, maybe tagging off at Jeff's on Jackson Green, curious just from a different angle on the second generation bio reactor. Is there anything about that second generation reactor that helps make this project pencil out, or is it just kind of a natural progression and timing matchup? Great question. Thank you for that, Thomas. Indeed, the project pencils are even with the first generation reactor. The second generation reactor makes it more efficient, more effective. And you know, when you've got a second generation reactor, a technology evolution like that, you're going to just start putting it in place, right?

Thomas Meric: Just a few for me, maybe tagging off from Geoff's on Jackson Green, curious just from a different angle on the second generation bioreactor. Is there anything about that second generation reactor that is unique?

Thomas Meric: Just a few for me, maybe tagging off of Jeff's on Jackson Green, curious just from a different angle, on the second generation bioreactor, is there anything about that second generation reactor that

Jennifer Holmgren: We talk a lot about the anticipated growth ahead for Lensapag related to SAF and it's my belief that our work with chemicals could grow in tandem with SAF and be just as big. This is not just an idea. In fact, we produce sufficient isopropanol for IKEA to make food storage containers as a proof of concept. We also completed the development work on our isopropanol process which means we should be ready to utilize and set the technology this year.

Thomas Meric: Help to make this project pencil out or is it just kind of a natural progression and timing matchup?

Jennifer Holmgren: Great question. Thank you for that, Thomas. Indeed, the project pencils out even with the first-generation reactor. The second-generation reactor makes it more efficient and more effective. And, you know, when you've got a second-generation reactor, a technological evolution like that, you're going to just start putting it in play, right? You always want to maximize profits. You always want to reduce costs, and that's what a second-generation reactor does for us. And so we intend to continue to implement it wherever it makes sense.

Jennifer Holmgren: Great question. Thank you for that, Thomas. Indeed.

Jennifer Holmgren: The project pencils out even with the first generation reactor, the second generation reactor.

Jennifer Holmgren: makes it more efficient, more effective, and, you know, when you've got a second-generation reactor, a technology evolution like that, you're going to just start putting it in play, right? You always want to maximize profits, you always want to reduce costs, and that's what second-generation is.

Jennifer Holmgren: You always want to maximize profits. You always want to reduce costs. And that's what second generation reactor does for us. And so we intend to continue to implement it wherever it makes sense.

Jennifer Holmgren: Our progress is not only driven by growing revenue, it is also underpinned by our commitment managed cost across the organization. And the cost savings we expect from our reorganization and from our reprioritization earlier this year are starting to show up in our results.

Jennifer Holmgren: Reactor does for us and so we intend to continue to implement it wherever it makes sense.

Geoffrey Trukenbrod: Hopefully. And then on the project funnel just want to think about the back half of the years as things reach and meet FID. I'm curious if you can characterize or we provide any more detail on just the types of project delays that are kind of possible. Yes, supply chain is the labor that just financial is getting things done or like general latency just kind of carry it on any additional detail for that.

Thomas Meric: Helpful. And then on the project funnel, just want to think about the back half of the year as things reach and meet FID. I'm curious if you can characterize or at least provide any more detail on just the types of project delays that are kind of possible.

Speaker Change: Helpful. And then on the project funnel, I just want to think about the back half of the year as things...

Speaker Change: I'm curious if you can characterize or at least provide any more detail on just the types of project delays that are kind of possible. Is it

Thomas Meric: Is it Thank you.

Speaker Change: supply chain, is it labor, is it just financial, getting things done, or just like general, you know, latency, just kind of carry us on any additional detail for that.

Geoffrey Trukenbrod: Yeah, let me pass this over to Jeff so he can give you a lot more details, Thomas. Yeah, Thomas, thanks for the question. As we talked about, we're expecting Q3 to look larger like Q2, which does obviously suggest a lot of weight on the fourth quarter. There are a half dozen or so significant projects that we're focused on in the fourth quarter. We're seeing revenues ramping up to the third quarter associated with some of those, but there are kind of material events in the fourth quarter. We talked about looking to transfer our first project, one of our infrastructure capital partners, obviously a meaningful amount of the quarter right there plus these other three or four.

Geoffrey Trukenbrod: Yeah, let me pass this over to Jeff so he can give you a lot more details, Thomas.

Jennifer Holmgren: And while there are many reasons to stand out. Number one, we have a commercially proven and diverse technology with six commercially operating facilities, we are not only ramping up production volumes and generating licensing revenues, but we also have over half a decade of operational experience at commercial scale. This extensive know-how allows us to partner with an impressive roster of customers, innovate continuously and build more commercial scale facilities. Later this year we expect to see announcements regarding repeat licensees and customers as we continue to move from first of a kind in a region to a series of plans with existing partners.

Jennifer Holmgren: Yeah, let me pass this over to Geoff so he can give you a lot more details, Thomas.

Geoffrey Trukenbrod: Yeah, Thomas, thanks for the question. As we talked about, you know, we're expecting Q3 to look largely like Q2, which does obviously suggest a lot of weight on the fourth quarter. There are a half-dozen or so of significant projects that, you know, we're focused on in the fourth quarter. We're seeing, you know, revenues ramping up in the third quarter associated with some of those, but there are kind of material events in the fourth quarter.

Speaker Change: Yeah, Thomas, thanks for the question. As we talked about, you know, we're expecting Q3 to look largely like Q2, which does obviously suggest a lot of weight on the fourth quarter.

Speaker Change: there are half doz't so significant projects that are focused on in the fourth quarter we're seeing revenues ing up thethird quar associated withsome of those but there are kind of material events of the fourth quarter we talked about looking to transfer our first project one of our infrastructure capital partners obviously a meaningful amount of the quarter right there plus these other three or four so certainly the difference between you know some of these transactions happening on twelve thirty one versus one one could have meaningful impact on our quarter

Geoffrey Trukenbrod: We talked about looking to transfer our first project, one of our infrastructure capital partners, obviously a meaningful amount of the quarter right there, plus these other three or four. So, certainly, the difference between, you know, some of these transactions happening on 12-31 versus 1-1 could have a meaningful impact on our quarter, but we don't see significant risk associated with those projects. It's just a matter of time, you know, but certainly there could be some timing aspects associated.

Geoffrey Trukenbrod: Certainly, the difference between some of these transactions happening on 1231 versus 11 could have meaningful impact on our quarter, but we don't see significant risk associated with those projects; just a matter of time. Certainly, there could be some timing as well associated with them.

Speaker Change: but we don't see significant risk associated with those projects just a matter but certainly there could be some timing as associated

Jennifer Holmgren: Number two, the flexibility of our technology. Our ability to utilize a diverse range of feedstocks, such as municipal and industrial waste, agriculture and forestry residues, and industrial off-gasters, ensures a commercial scale, low-class supply of input globally, allowing us to benefit from regional variations in feedstocks and produce valuable ethanol for major markets, insustainable fuels, textiles, plastics and chemicals. We are a business built on a platform which has led the sufficient interest to enable a licensing model and we are building a strong recurring revenue foundation, brick by brick, with each license that we deploy.

Jennifer Holmgren: Well, then last question for me kind of hinted at I think just wanted to get an update on Brookfield in the first project to be transferred to that partnership or just generally any time that you have on the partnership, and that's it for me. Thank you again. Indeed, so we have a project that I can't go through multi-tiles right now that we are taking through to FID. The most important part about the partnership is that while we're developing the project, we are working directly with Brookfield, who is providing input on, you know, FID is a fluffy concept that can be defined by many people in different ways.

Thomas Meric: And then last question for me, kind of a hint to that, I think, just want to get an update on Brookfield and the first project to be transferred to that partnership or just generally any comments you have on the partnership. And that's it for me. Thank you again.

Thomas Meric: Helpful. And then last question for me, kind of a hint to that, I think, just want to get an update on Brookfield and the first project to be transferred to that partnership, or just generally any comments you have on the partnership. And that's it for me. Thank you again.

Jennifer Holmgren: Indeed, so we have a project that I can't go through more details right now that we are taking through to FID. The most important part about the partnership is that while we're developing the project, we are working directly with Brookfield, who is providing input on. You know, FID is a vague concept that can be defined by many people in different ways, right? And so by working with them directly, they point out exactly what they need at every stage of the game, so that when we are ready to transfer the project, they're not going to say, well, surprise, I need these three other things, which are going to take you another couple of months.

Jennifer Holmgren: Indeed, so we have a project, I can't go through more details right now.

Jennifer Holmgren: that we are taking.

Speaker Change: through to SID. The most important part about the partnership is that while we're developing the project, we are working directly with Brookfield, who is providing input on

Speaker Change: You know, FID is a fluffy concept that can be defined by many people in different ways, right? And so, by working with them directly, they point us to exactly what they need at every stage of the game.

Jennifer Holmgren: And so, by working with them directly, they point us to exactly what they need at every stage of the game so that when we are ready to transfer the project, they're not going to say, well, surprise, I need these three other things, which are going to take you another couple of months. And so we have a real project. We've gotten it to the very late stages of engineering. We're working with our ABC partner. It has met so far, even though we're in late stages, all the criteria required by Brookfield. We've just got a couple more things to do to check the FID box.

Jennifer Holmgren: As I said at the start, we are making undeniable progress and that to me and to all of us here at Lancet Pack is very satisfying.

Jennifer Holmgren: So that when we are ready to transfer the project, they're not going to say, well, surprise, I need these three other things, which are going to take you another couple of months. So we have a real project. We've gotten it to the very late stages of engineering. We're working with our EPC partner. It has...

Geoffrey Trukenbrod: With that, I'll turn it over to Jeff.

Jennifer Holmgren: So we have a real project, we've gotten it to the very late stages of engineering, and we're working with our APC partner. It has... So far, even though we're in the late stages, all the criteria required by Brookfield, we've just got a couple more things to do to check the FID box. Um, yeah, we'll leave it at that. Actually, I should add one other important thing. We have a really robust pipeline. The only reason we're focused on one project initially, while we could do many in parallel, is that it's really quite important to understand how to transfer a project to them, and rather than just have too many projects that we're working on at the same time, we wanted to focus on one, transfer it quickly, and then say, okay, here's the rest of the pipeline, and move that very, very quickly.

Geoffrey Trukenbrod: Thanks Jennifer.

Geoffrey Trukenbrod: Good morning everyone and thank you for joining us on the call. I'll discuss our results for the second quarter of 2024 and then I'll provide further details on our expectations for the back half of this year. As Jennifer mentioned and has seen on slide five of our latest investor presentation, we reported strong revenue growth for the second quarter of 2024, achieving $17.4 million of total revenue which exceeded expectations. This represented the year-over-year growth of 35% and 70% quarter-over-quarter.

Speaker Change: met so far, even though we're in late stages, all the criteria required by Brookfield, we've just got a couple more things to do to check the FID box. Yeah, leave it at that.

Jennifer Holmgren: Yeah, leave it at that.

Jennifer Holmgren: Actually, I should add one other important thing. We have a really robust pipeline. The only reason we're focused on one project initially, while we could do many in parallel, is that it's really quite important to understand how to transfer a project to them, and rather than just have too many projects that we're working on at the same time, we wanted to focus on one, transfer it quickly, and then say, okay, here's the rest of the pipeline, and move that very, very quickly.

Jennifer Holmgren: Actually, I should add one other important thing. We have a really robust pipeline. The only reason with Brookfield, the only reason we're focused on one project initially, while we could do many in parallel, is if it's really quite important to understand how to transfer a project to them. And rather than just having too many projects that we're working on at the same time, we wanted to focus on one, transfer it quickly, and then say, okay, here's some rest of the pipeline, and move that very, very quickly.

Jennifer Holmgren: And actually, I should add one other important thing. We have a really robust pipeline. The only reason we're focused on one project is

Geoffrey Trukenbrod: Reeling down into the separate revenue categories, this quarter's strong results were driven by a $13.7 million in our buyer-finding business which was up 41%, here over here. As Jennifer noted, a significant component of this revenue was related to the additional equity consideration we received from LanzaJet and Q2. This additional consideration relates to the exclusive licensing agreement associated with the A to J technology that we entered into with LanzaJet when we originally spun the LanzaJet out into its own business.

Jennifer Holmgren: initially while we could do many in parallel is it's really quite important to understand how to transfer a project to them and rather than just

Jennifer Holmgren: having too many projects that we're working on at the same time, we wanted to focus on one, transfer it quickly, and then say, okay, here's the rest of the pipeline, and move that very, very quickly.

Jason Gabelman: Thank you.

Geoffrey Trukenbrod: When we launched LanzaJet in 2020, we received our initial equity ownership state and consideration for exclusively licensing them, the A to J technology development, LanzaTech. The company is consistently accounted for this transaction as a revenue transaction with a customer under ASC 606. The licensing and technical support services provided are recognized as a single component performance obligation satisfied over the expected period of those services beginning May 2020 through December 2025. Consistent with that approach, the additional equity consideration we received in Q2 was accounted for as additional consideration for that same performance obligation over the same period.

Jason Gabelman: Thank you. And our next question comes from Jason Gabelman with T.D. Cohen.

Jason Gabelman: And our next question comes from Jason Gabelman with TD Cohen. Yeah, morning. Thanks for taking my questions. I want to ask first on the financing you announced this morning: the $40 million of convertible notes. I was hoping just to be able to provide some key terms around that convertible note, the kind of maybe the rate, and if that's interest, that's paid in cash or in kind, and then the convertible strike price. And, yeah, that would be awesome.

Speaker Change: Thank you. And our next question comes from Jason Gabelman with TB Cohen.

Geoffrey Trukenbrod: Yeah, morning. Thanks for taking my questions. I wanted to ask first about the financing you announced this morning, the $40 million.

Jason Gabelman: Yeah, morning. Thanks for taking my questions. I wanted to ask first about the financing you announced this morning, the $40 million in convertible notes. I was hoping just if you could provide some key terms around that convertible note, the kind of maybe the rate and if that's interest that's paid in cash or in kind, and then the convertible strike price. And yeah, that would be all.

Speaker Change: Good morning. Thanks for taking my questions. I wanted to ask first on the financing you announced this morning, the $40 million.

Speaker Change: of Convertible Notes. I was hoping just if you could provide some key terms.

Speaker Change: around that convertible note, the kind of, maybe the rate, and if that's...

Speaker Change: interest that's paid in cash or in kind and then the convertible strike price.

Geoffrey Trukenbrod: As contemplated in the original licensing agreement, LanzaJet's ability to further sublicense the A to J technology is enabled by the grant of additional equity to LanzaTech. Associated with LanzaJet's first sublicensing events of the A to J technology, the Q2 equity grant to LanzaTech was the first of what is anticipated to be a total of three additional charges of 15 million shares. For each of the first three sublicensing events, at which point LanzaTech will have received its full consideration for the A to J license.

Geoffrey Trukenbrod: Yeah, Jason, thanks for the question. I'll be happy to try and hit on a couple of the key terms.

Geoffrey Trukenbrod: Yeah, Jason. Thanks for the question. Happy to try and hit on a couple of the key terms. You know, it is, as we comment on, you know, $40 million of what's contemplated to be up to $150 million of in-verbal notes. The basic terms, there is an 8% coupon; it is a pick, so it's paid in kind, so there's no cash base associated with it. There are the different adjustments to the conversion price and the mandatory conversion features, voluntary conversion features, and so I'd direct you to the 8-K that we put out this morning that includes the documents themselves and some additional key terms associated with it.

Speaker Change: And, yeah, that would be helpful.

Geoffrey Trukenbrod: Yeah, Jason, thanks for the question. Happy to try and hit on a couple of the key terms.

Jason Gabelman: It is, as we commented on, $40 million of what's contemplated to be up to $150 million of convertible notes. The basic terms are that there is an 8% coupon. It is a PIC, so it's paid in kind. There's no cash pay associated with it. The base conversion price is $1.52. There are different adjustments to the conversion price based on mandatory conversion features and voluntary conversion features. And so I'd direct you to the 8K that we put out this morning that includes the documents themselves and some additional key terms associated with them. But again, it's a fairly straightforward piece of conversion.

Speaker Change: It is, as we commented on, $40 million of what's contemplated to be up to $150 million of convertible nodes.

Speaker Change: The basic terms, there is an 80% coupon, it is a PIC, so it's paid in kind, so there's no cash pay associated with it.

Speaker Change: The base conversion price is $1.52. There are different adjustments to the conversion price based on mandatory conversion features, voluntary conversion features, and so I direct you to the 8K that we put out this morning that includes the documents themselves and some additional key terms associated with it.

Geoffrey Trukenbrod: For further details regarding the accounting treatment for this transaction, please refer to the form 10Q we filed with the SEC today. By refining revenue Q2 also included startup and engineering services revenue from existing customers, as well as early stage engineering and equipment revenue associated with multiple new customers, including NTPC, one of India's leading power generation companies. Excluding the $7.9 million related to the LanzaJet transaction, these revenues were $5.8 million for the court.

Geoffrey Trukenbrod: But again, it's fairly straightforward: piece of conversion. Okay, great.

Geoffrey Trukenbrod: But, again, it's a fairly straightforward piece of converting.

Geoffrey Trukenbrod: Okay, great. And then the follow-up is just the path to a break-even EBITDA, kind of tied to this financing. Are you more comfortable now with your cash position, and do you feel like you have enough of a liquidity buffer to get up to break-even EBITDA? And any updated thoughts on when to expect to hit that important milestone? Yeah, so.

Geoffrey Trukenbrod: And the follow-up is just the path to a break-even EBITDA. I'm kind of tied to this financing.

Speaker Change: Okay, great. And then the follow-up is just the tasks.

Speaker Change: to break even EBITDA and kind of tied to this financing. Are you more comfortable now with your cash position and do you feel like you have enough of a liquidity buffer to get up to break even EBITDA and any updated thoughts on when you expect to hit that important milestone?

Geoffrey Trukenbrod: Are you more comfortable now with your cash position, and do you feel like you have enough of a liquidity buffer to get up to break even EBITDA, and any updated thoughts on when they expect to hit that important milestone? Yeah, so we are very, you know, pleased to have an additional $40 million of liquidity on the balance sheet. We do think that that provides sufficient funding through 2025, as you can look at our cash borne historically and the expectation that that would continue to decline over that period of time.

Geoffrey Trukenbrod: Joint development and contract research revenue for the second quarter of 2024 was $2.8 million compared to $2.2 million for second quarter of 2023, representing an increase of 25% year over year, primarily reflecting the progression expansion of work with existing JDA partners. And for carbon smart, revenue for the second quarter of 2024 was $0.9 million. It was fairly in line with the $1 million we did in second quarter of 2023. Importantly, carbon smart for the first half of 2024 was $1.8 million compared to $1 million for the first half of 2023, representing a year over year increase of 79%, and we continue to expect a ramp in this revenue category in the back half of the year.

Geoffrey Trukenbrod: Yeah, so we are very, you know, pleased to have an additional 40 million dollars of liquidity on the balance sheet. We do think that that provides sufficient funding through 2025, as you kind of look at our cash quarter and historically and the expectation that that will continue to decline over that period of time. As you know, we haven't provided guidance beyond 2024 in terms of the specifics around profitability, but we do expect to raise additional capital associated with either this round or some additional capital.

Geoffrey Trukenbrod: Yeah, so we are very, you know, pleased to have an additional forty million dollars of liquidity on the balance sheet. We do think that that provides sufficient funding through 2025, as you kind of look at our cash borne historically and the expectation that that will continue to.

Geoffrey Trukenbrod: As you know, we haven't provided guidance beyond 2024 in terms of the specifics around profitability, but we do expect to raise additional capital associated with either this round or worse. Okay, thanks.

Geoffrey Trukenbrod: decline over that period of time. As you know, we haven't provided guidance beyond 2024 in terms of the specifics around profitability, but we do expect to raise additional capital associated with either this round or some additional.

Geoffrey Trukenbrod: Turning now to cost of revenue, we reported $5.5 million in second quarter of 2024, as compared to $10.8 million per second quarter of 2023. Cost of revenue for this quarter was largely comprised of headcount allocations related to delivery of our buyer or finding services in JDA work. As a result of the significant licensing component of our revenue, Q2, and its associated low cost, gross margin was very healthy this quarter, coming in at 68%.

Jennifer Holmgren: Can I just please piggyback on that for a second? I hope so. Very excited to be partnering with Carbon Direct. I don't know if you know Carbon Direct, but they specialize in carbon management companies. They have a consultancy piece that works with the Microsoft's more than JP more than Mitsubishi and other major corporations on really carbon management and how to think about carbon reduction, and they also have an investment arm. And that investment arm has initially focused on early-stage private startup companies, and it's now starting to focus more and more on de-risk scale-up companies like ourselves.

Jennifer Holmgren: Can I just please piggyback on that for a second? We're also very excited to be partnering with CarbonDirect. I don't know if you know CarbonDirect, but they specialize in carbon management companies. They have a consultancy piece that works with Microsoft, JP Morgan, Mitsubishi, and other major corporations on carbon management and how to think about carbon reduction. And they also have an investment arm, and that investment arm has initially focused on early-stage private startup companies and is now starting to focus more and more on de-risked scale-up companies like ourselves.

Speaker Change: Okay, thanks.

Speaker Change: Can can I just Please piggyback on that for a second. We're also very excited to be partnering with Carbon Direct

Speaker Change: I don't know if you know Carbon Direct, but...

Speaker Change: They specialize in carbon management companies. They have a consultancy piece.

Geoffrey Trukenbrod: If we strip out the uplift attributed to the lands of jet transaction, gross margin was still a solid 42% for the quarter. On the operating cost front, second quarter of 2024 operating expenses were $34.7 million as compared to $32.7 million per second quarter of 2023. Finally, this op-ex came in under budget as we continue to work to drive down our op-ex this year. With that said, we still saw a 6% increase in op-ex year over year, as we continue to incur expenses associated with select 3 FID projects that were developing, which are not currently eligible for capitalization.

Speaker Change: that works with the Microsoft, JPMorgan, Mitsubishi, and other major corporations on really carbon management and how to think about...

Geoffrey Trukenbrod: Carbon Reduction, and they also have an investment arm.

Speaker Change: And that investment arm has initially focused on early-stage private startup companies and is now starting to focus more and more on de-risked scale-up.

Jennifer Holmgren: So we are really, really happy to have them on board. And I just wanna make that clear that they're gonna be a tremendous partner and help us on our journey, very well aligned with the rest of our investigations.

Jennifer Holmgren: So we are really, really happy to have them on board, and I just want to make that clear that they're going to make it a tremendous partner and help us on our journey and very well aligned with the rest of our end-to-end vegetable.

Geoffrey Trukenbrod: companies like ourselves. So we are really, really happy to have them on board and I just want to make that clear that they're going to make a tremendous partner and help us.

Geoffrey Trukenbrod: We expect to recoup these costs where infrastructure capital partners take over these projects at FID and expect the first of these transition transactions to take place during the fourth quarter of 2024. Our second quarter of 2024 adjusted even a loss with $17.20 million, as compared to a second quarter of 2023 adjusted even a loss of $23.20. The year-over-year improvement of 26% is primarily attributable to the higher Q2 revenue and its mix of higher margin, which wrote significantly higher year-over-year gross profit.

Speaker Change: on our journey and very well aligned with the rest of our investigation.

Jennifer Holmgren: Thank you. Thanks.

Speaker Change: Thank you.

Steve Byrne: Thank you. And we will take our next question from Steve Byrne with Bank of America.

Steve Byrne: thanks

Steve Bern: And we will take our next question from Steve Bern with Think of America. Yeah, thank you. Jennifer, you made a comment that you expect to get that funding from the DOE for projects secured by year-end. I assume you likely have a cracker lined up for this project, and maybe more specifically, the hydrogen that you'll need for this for the, you know, to capture the CO2 and convert it into first ethanol. Could you use the yes of the hydrogen that's a byproduct from the cracker and arguably call it blue given your carbon capture system? Is this a way to potentially reduce the cost of the process?

Steve Byrne: Thank you. And we will take our next question from Steve Byrne with Bank of America.

Steve Byrne: Yes, thank you. Jennifer, you made a comment that you expect to get that funding from the DOE for Project Secure by year end. I assume you likely have a cracker lined up for this project, and maybe more specifically, the hydrogen that you'll need to capture the CO2 and convert it into first ethanol. Could you use the hydrogen that's a byproduct from the cracker and arguably call it blue given your carbon capture system? Is this a way to potentially reduce the cost of the process?

Steve Byrne: Yes, thank you. Jennifer. Jennifer.

Speaker Change: You made a comment that you expect to get that funding from the DOE for Project Secure by year-end.

Speaker Change: I assume you likely have a cracker.

Steve Byrne: lined up for this project

Speaker Change: And maybe more specifically, the hydrogen that you'll need for this, for the, you know, to capture the CO2 and convert it into first ethanol,

Steve Byrne: could you could you use the yes of the hydrogen that's a byproduct from the cracker and an arguably call it blue given your carbon capture system is this a way to potentially reduce the cost of the process

Geoffrey Trukenbrod: It actually previously discussed in our first quarter of 2024 call, including a number of large annual payments, such as 2023 set of capitalization, the majority of our 2024 insurance premiums, and other expenses that are traditionally paid during the first quarter, but expense throughout the year for accounting purposes, as well as a large customer payment that was deferred from Q1 and Q2. Q2 cash for and was further benefited by the reduced off-exer of her two earlier.

Jennifer Holmgren: Do you want to come over and project manage the project Steve? Because I think you're right on there. Absolutely. I think the carbon intensity of

Jennifer Holmgren: Do you want to come over and project manage the project, Steve? Because I think you're right on there.

Jennifer Holmgren: Do you want to come over and project manage the project, Steve? Because I think you're right on there. Absolutely. I think the carbon intensity of off gases that exist in the petrochemical complex that we'll be using, and how we leverage those, is going to be extremely important in thinking through this. And the way we're going to think about the hydrogen we use is to both look at its carbon intensity as well as its availability and cost, right? And the technical economics plus the life cycle will dictate exactly what hydrogen we use as feedstock. But absolutely the value of these projects is to integrate the value of these projects is to reduce cost by leveraging what's available.

Jennifer Holmgren: Do you want to come over and project manage the project Steve? Because I think you're right on there. Absolutely, I think the carbon intensity of

Steve Byrne: Absolutely, I think the carbon intensity of the off gases that exist in the petrochemical complex that we'll be using and how we leverage those is going to be extremely important in thinking through this. And the way we're going to think about the hydrogen we use is to both look at its carbon intensity, as well as its availability and cost, right? And technical economics plus the life cycle will dictate exactly what hydrogen we use as feedstock.

Steve Byrne: You know, off gases that exist in the petrochemical complex that we'll be using and how we leverage those is going to be extremely important.

Geoffrey Trukenbrod: As Jennifer previously mentioned, we're excited to announce the closing this week of a new $40 million investment by Carman Direct Capital, a globally recognized investor in the energy transition space. This additional capital bolsters our balance sheet and strengthens our financial flexibility. As noted in our 10Q, this $40 million was invested pursuant to a convertible no purchase agreement, which contemplates one or more closings for up to $150 million of convertible notes. We continue to see additional financing under the convertible no purchase agreement from certain accredited investors, with whom we have a pre-existing, substantive relationship.

Speaker Change: thinking through this and the way we're going to...

Speaker Change: to think about the hydrogen we use is to both look at its carbon intensity as well as its availability and cost, right? And the techno-economics plus the life cycle will dictate exactly what hydrogen...

Steve Byrne: But absolutely, the value of these projects is to integrate the value of these projects is to reduce costs by leveraging what's available. And I also want us to always remember that our projects enable us to create a roadmap. In other words, one can start with a certain technical economic basis with a certain carbon intensity and then transition to something more rigorous, right? Nothing says that as green hydrogen and green electrons become much more available, a plant that started up on what would essentially be blue hydrogen and off gas from the refinery cannot become then supplemented by green hydrogen, continuing to reduce its carbon intensity.

Speaker Change: we use as feedstock. But absolutely, the value of these projects is to integrate, the value of these projects is to reduce costs by leveraging what's available, and

Jennifer Holmgren: And I also want us to always remember that our projects enable us to create a roadmap. In other words, one can start with a certain technical economic basis with a certain carbon intensity and then transition to something more rigorous, right? Nothing says that as green hydrogen and green electrons become much more available, a plant that started up on what would essentially be do hydrogen and off gas from the refinery cannot become then supplemented by green hydrogen, continuing to reduce carbon intensity. And I think what you're following is in industries like staff. You get rewarded for the carbon intensity of your product.

Speaker Change: I also want us to always remember that our projects enable us to create a road map. In other words, one can start with a certain techno-economic basis, with a certain carbon intensity, and then transition to something more rigorous, right?

Geoffrey Trukenbrod: On now quickly touch on our recent form 8K related to a lawsuit we filed in connection with what we consider a breach number four purchase agreement for FPA. There's a detailed discussion contained in our form 10Q file today, but I will provide you with a few high-level details here. Essentially, it is our position that a shareholder breaches the FPA by selling lands detect shares that it was obligated to hold for the benefit of lands detect under the FPA.

Speaker Change: Nothing says that as green hydrogen and green electrons become much more available, a plant that started up on what would essentially be blue hydrogen and off-gas from the refinery

Steve Byrne: And I think what you'll find is, in industries like SAS, you get rewarded for the carbon intensity of your product. So we won't let the perfect be the enemy. Good. We'll start with what's available and makes sense. And then we will progress to think

Speaker Change: cannot become then supplemented by green hydrogen, continuing to reduce its carbon intensity. And I think what you'll find is, in industries like SAS,

Geoffrey Trukenbrod: We are alleging that if in fact shares were sold by the shareholder lands detect as entitled to receive from the shareholder approximately $10.16 per share sold for the terms of the FPA. The shareholder in turn has notified us that its position is that they were entitled to accelerate maturity data to the contract given our shares had traded under $3 for 50 out of the 60 trading days, period, prior to July 2nd, 2024.

Jennifer Holmgren: So we won't let the perfect be the enemy; goodwill start with what's available and make sense, and then we will progress to think that raised the bar. And so that really is what we intend to do here and demonstrate that now.

Speaker Change: You get rewarded for the carbon intensity of your product, so we won't let the perfect be the enemy. Good, we'll start with what's available and make sense, and then we will progress.

Speaker Change: to thinkstats, raise the bar.

Jennifer Holmgren: And so that really is what we intend to do here and demonstrate that path.

Jennifer Holmgren: Thank you again. Sure.

Jennifer Holmgren: Sure. And at full scale, do you have an estimate of what it will cost?

Jennifer Holmgren: Sure. And at full scale, do you have an estimate of what the unit variable cost could be per pound of ethylene?

Geoffrey Trukenbrod: And therefore, for the contract terms, LanzaTech includes the shareholder approximately $7.5 million in maturity consideration, which can be satisfied in cash or shares, and approximately $2.5 million in share consideration payable in cash. It's important to note that as our position, the shareholder breaches the contract before the maturity date would be accelerated, and the shareholder sold its shares without complying with the procedures in the FPA, which includes paying LanzaTech to corresponding amount per share to witches entitled.

Jennifer Holmgren: And at full scale, do you have an estimate of what the unit variable cost could be, you know, propound the Bethlehem just as a way to characterize this pathway as opposed to using a same based feedstock? Not today; too many unknowns on the exact site, the exact hydrogen source, the exact cost of the utilities. And that will be after the phase phase of engineering, and we hope to start that before the end of the year for sure, and they get into early next year. So ask me again next year, please.

Speaker Change: doing it sure and it full scale do you have an estimate of what

Speaker Change: The unit variable cost could be per pound of ethylene just as a way to characterize this pathway as opposed to using ethane-based feedstock.

Steve Byrne: Not today. Too many unknowns about the exact site, the exact hydrogen source, the exact cost of the utilities. And that will be after the phase phase of engineering. And we hope to start that before the end of the year, for sure. And take it into early next year. So ask me again next year, please.

Speaker Change: Not today. Too many unknowns on the exact site, the exact hydrogen source, the exact cost of the utilities. And that will be after the phase phase of engineering and and we hope to start that before the end of the year for sure and and take it into early next year. So ask me again next year please.

Jennifer Holmgren: And just one last one for you. Any meaningful differences or challenges between this operation to produce, you know, ethanol and then ethylene versus producing propanol and then propylene? Is one, you know, any more challenging than the other? Are your microbes fully capable of producing either?

Jennifer Holmgren: I'm just one last one for you. Any any meaningful differences, the more challenges between this operation to produce, you know, ethanol and an ethylene versus producing propanol and then propylene is one, you know, any more challenging than the other is your microbes fully capable of producing either? So the base case ethanol is our existing commercialized micro, right, that we have so many years of experience with. You know, we had our first commercial plant running in 2018. The propylene is a genetically modified organism. It is one that we have developed. It is the chassis; the basis is the bacteria that makes ethanol, but it is modified.

Speaker Change: and just one last for you any any meaningful differences

Geoffrey Trukenbrod: We plan to pursue our claims vigorously, but cases like this can take some time to conclude. We will not be commenting on sign-going litigation, but we wanted to make the details of this case abundantly clear from the start. We're taking the situation very seriously.

Speaker Change: more challenges.

Speaker Change: between this operation to produce, you know, ethanol and then ethylene versus producing propanol and then propylene. Is one, you know, any more challenging than the other? Are your microbes fully capable of producing either?

Geoffrey Trukenbrod: Now, I'd like to take some time and discuss the remainder of 2024 and what we see from here. As Jennifer mentioned, we're reaffirming our full year 2024 Revenue Guidance of $90 million, $205 million, which at the midpoint represents approximately 55% revenue growth of 2023. We're also reaffirming the adjusted EBITDA of negative $65 million for full year 2024, which at the midpoint represents an improvement of approximately 25%.

Steve Byrne: So the base case ethanol is our existing commercialized microbe, right, that we have so many years of experience with. You know, we had our first commercial plant running in 2018. The propylene is a genetically modified organism. It is one that we have developed. It is the chassis, the basis, is the bacteria that makes ethanol, but it is modified. It is a more challenging kind when we do propranolol.

Jennifer Holmgren: So the base case ethanol is our existing commercialized microbe, right, that we have so many years of experience with. We had our first commercial plant running in 2018.

Jennifer Holmgren: so the base case ethanolge is our existing commercialized micro bright that we have so many years of experience with we had a first commercial plant ning in two thousand andeighteen

Jennifer Holmgren: Propylene is a genetically modified organism. It is one that we have developed. It is the chassis, the basis, is the bacteria that makes ethanol, but it is modified. It is more challenging, but we don't believe there are any issues. You know our process; we are very conservative, and we've taken it through piloting. We piloted Isopropanol at our SunCore demonstration facility, so we're very comfortable and confident, but I don't want to say ethanol and propanol right now are in the same breath. We need to accept that that is still going to be a first of a kind when we do propanol. But what you said, which I think is most important.

Jennifer Holmgren: The propylene is a genetically modified organism. It is one that we have developed. It is the chassis, the basis is the bacteria that that makes ethanol but it is modified.

Geoffrey Trukenbrod: As we look at how projects are progressing and how revenue projections are broken down between the third quarter and fourth quarters of this year, we expect revenue to be heavily weighted to the fourth quarter, with third quarter to 2024 revenue expected to be similar to second quarter to 2024. We expect several projects to progress to the final investment decision stage of their development process in fourth quarter. This unlocks equipment revenues as these projects progress into construction.

Jennifer Holmgren: It is a more challenging step than doing ethanol, which is our bread and butter. We don't believe there are any issues. You know our process is very conservative, and we have taken it through the piloting. We've piloted our support and all our sun core demonstration facilities, so we're very comfortable and confident. But I don't want to say ethanol and propanol right now on the same grass, right? We need to accept that that that is still going to be a first of a kind when we do propanol, but what you said, which I think is most important, is crackers make ethylene and the protein, and it is absolutely LanzaTech's intention to lever crackers to make the sustainable ethylene and propanol.

Jennifer Holmgren: It is a more challenging

Jennifer Holmgren: step than doing ethanol, which is our bread and butter. We don't believe there are any issues. You know, our process is.

Geoffrey Trukenbrod: The team is very focused on progressing these projects, but if timing slips into next year, then it can negatively impact our ability to achieve our guidance. We expect the quarterly impact of project timing will lessen over time as we continue to scale our recurring revenue.

Jennifer Holmgren: We're very conservative, and we have taken it through the piloting. We piloted the isopropanol at our Suncor demonstration facility, so we're very comfortable and confident, but

Jennifer Holmgren: I don't want to say ethanol and propanol right now on the same breath, right? We need to accept that that is still going to be a first of a kind when we do propanol. But what you said, which I think is most important...

Geoffrey Trukenbrod: We remain focused on reaching profitability as soon as reasonably possible. Our path to profitability is simple. It is based on continued growth of revenue and growth's profit, while diligently controlling our costs. Not exactly what you count on for us.

Jennifer Holmgren: But what you said, which I think is most important, is crackers make ethylene, and they make propylene, and it is absolutely LanzaTech's intention to use crackers to make sustainable ethylene and propylene. We will do it at the same location, we will make it work exactly the same way, we will integrate it in a way that the economics makes sense. We are trying to replace all of the commodity chemicals that are used today in making the products we use every day.

Jennifer Holmgren: With that, I'll turn the call back to Jennifer for some closing remarks before we open the call for Q&A. Jennifer. Thank you, Jeff. While many countries are already moving to the future with carbon-free power, we still need a sustainable source of carbon for essential products like textiles, packaging, consumer goods, food, and fuels. Carbon is not the enemy, but an essential part of our daily lives. The issue is how we source, utilize, and dispose of the carbon we use.

Speaker Change: is crackers make ethylene and they make propylene and it is absolutely LanzaTech's intention to lever crackers.

Steve Byrne: Very good. Thank you.

Jennifer Holmgren: Landsat that has the flexibility to deliver solutions to address this challenge. Efficiency is key. We must make the most set of every carbon molecule. Initiatives like Project Secure will enable our customers to produce more products and drive more revenue, while reducing the need to buy more fossil feed. Stucks. This will enable our economy to keep more fossil carbon in the ground. The circular economy prioritizes resource efficiency, waste reduction and sustainable practices. This not only keeps materials in use for as long as possible, minimizing the strain on our planet's resources, but it tries to maximize maximum value from every carbon molecule.

Jennifer Holmgren: to make the sustainable ethylene and propylene. We will do it at the same location. We will make it work exactly the same way. We will integrate it in a way that the economics make sense.

Jennifer Holmgren: We will do it at the same location; we will make it work exactly the same way. We will integrate it in a way that the economics makes sense. We are trying to displace all of the commodity chemicals that are used today in making the products we use every day.

Jennifer Holmgren: Thank you. And it appears that we have no further questions at this time. I will now turn the program back to Jennifer Holmgren for closing remarks.

Jennifer Holmgren: We are trying to displace all of the commodity chemicals that are used today in making the products we use every day.

Jennifer Holmgren: Very good, thank you.

Speaker Change: Very good, thank you.

Jennifer Holmgren: Thank you, and it appears that we have no further questions at this time. I will now turn the program back to Jennifer Holmgren for closing remarks. Thank you so much, LanzaTech, and the circular economy are in growth mode. The circular economy market size was valued at roughly 550 million in 2023, and is projected to reach over $1 trillion by 2030, representing a danger of 13 percent from 2024 to 2030.

Jennifer Holmgren: Thank you. And it appears that we have no further questions at this time. I will now turn the program back to Jennifer Holmgren for closing remarks.

Jennifer Holmgren: LanzaTech and the circular economy are in growth mode. The circular economy market size was valued at roughly $515 million in 2023 and is projected to reach over a trillion dollars by 2030, representing a compound annual growth rate of 13% from 2024 to 2030.

Jennifer Holmgren: Thank you so much. LanzaTech and the circular economy are in growth mode.

Jennifer Holmgren: Thank you so much.

Jennifer Holmgren: LanzaTech and the circular economy are in growth mode. The circular economy market size was tallied at roughly $515 million in 2023 and is projected to reach over a trillion dollars by 2030, representing a cager of 13% from 2024 to the 2030.

Jennifer Holmgren: Together, we at LanzaTech are not just building a technology; we are pioneering that circular economy that has the potential to transform pollution into profit and enable the economies to grow using local resources, fostering a sustainable future for generations to come. Thank you again for joining us; thank you for supporting us; thank you for giving us the opportunity to show what we can do with carbon that's already above ground.

Jennifer Holmgren: Together, we at LanzaTech are not just building a technology, we're pioneering that circular economy that has the potential to transform pollution into profit and enable economies to grow using local resources.

Jennifer Holmgren: This is exactly what LanzaTech offers its customers and how we intend to help develop a new circular carbon economy. A cornerstone of a strong circular economy said companies have to operate within it profitably. We at LanzaTech are steadfast and are focused to drive the profitability as quickly as possible.

Jennifer Holmgren: fostering a sustainable future for generations to come.

Jennifer Holmgren: Thank you again for joining us. Thank you for supporting us. Thank you for giving us the opportunity to show what we can do with carbon that's already above ground. Thank you. Thank you. And I wish you a great rest of your day.

Operator: Thank you, thank you, and I wish you a great rest of your day. Thank you.

Jennifer Holmgren: I want to close by coming back to the five key takeaways I outlined at the outset of the call. First, we delivered strong results of our head of expectations for the quarter with revenue growth of 35% near over year. Second, we continue to sign new contracts, add new customers and progress projects through our bios finding development pipeline. And I am especially excited about the commencement of our carbon smart fuel sales. Third, we increased our ownership and landscape by 14% up to 37% from 23%.

Operator: This does conclude today's LanzaTech Global Inc. 2nd quarter, 2024, earnings conference call. Thank you for your participation; you may disconnect at any time.

Speaker Change: Thank you. This does conclude today's LanzaTech Global, Inc. Second Quarter 2024 Earnings Conference Call. Thank you for your participation. You may disconnect at any time.

Jennifer Holmgren: Fourth, we announced a $40 million investment from a new investor, carbon direct capital, which will help fund future growth and working capital as we scale our business. Carbon direct is a leading investor in the carbon management ecosystem, and they have sophisticated expectations to scale up of carbon abatement solutions. We are very pleased to welcome them on this journey with us. And fifth and final, will we affirm their financial guidance for the full year, which includes 2024 revenue expectations of 90 to 105 million.

Jennifer Holmgren: The team is very focused on getting several sizable projects across the FID line in the back half of this year, and we look forward to updating you on our progress in the coming months. Our financial objectives have been and continue to be reaching profitability and from there becoming free cash or positive. The way we get there is by executing on projects, deploying licenses, and being diligent with cost management, and that is exactly what we're doing.

Jeffrey Campbell: And we will take our first question from Jeffrey Campbell with C-Port Research Partners. Good morning. This is a quarter that could produce dozens of questions, but I'll remember myself to four if I'm there. The first one is.., as our other entity is showing interest in your polypropylene effort. Does the Incident work with IKEA Limit Lancers ability to work with other industry parties?

Jennifer Holmgren: Hi, Jeff. Thanks for limiting your questions to four, and that is a great start with. There is no limitation on who we can work with.

Jennifer Holmgren: The work we IKEA was to develop the capability because they win if there is sufficient interest to build commercial facilities. As you can imagine with polypropylene, there's a lot of interest. For example, it's critical in the medical sector, it is critical in the automotive sector, and so we're talking to quite a number of partners who are interested in the off-take. Even more exciting, we're talking to a number of partners who are really interested in licensing the technology so they can use our new bacteria to make isopropanol that can then be converted further to propylene and then polypropylene. There is tremendous interest and there is absolutely no limitation on us. Okay, great.

Jennifer Holmgren: I was wondering if you could add a little bit of color to these specific ethanol licensing that you've now achieved for carbon smart and with that in mind, which markets do you feel are now more open to Lanza as a result? And you're talking about the fuel licenses and so from the first ethanol sales with our new licenses went into the China market. We are looking at other markets in Southeast Asia as well.

Jennifer Holmgren: The one license that still remains is an ISCC certification that enables us to trade into Europe. That one we don't have yet, and so our fuel sales right now are absolutely focused on China. And as you can imagine, it was quite a journey to get all of the license and seeing all of the permits and all of the infrastructure to enable us to do that. So we're now in a smooth path and made our first sale.

Jennifer Holmgren: Okay, great.

Jennifer Holmgren: Earlier in your prepared remarks, you referenced hopefully green hydrogen with regard to the Indian project.

Jennifer Holmgren: I was just wondering, is it possible to arrive and an acceptable carbon intensity score for a Lanza CO2 hydrogen project without green hydrogen? So I think gray hydrogen will make it difficult conversion with our process or anybody else's process of CO2 with gray hydrogen will make it very difficult to show a reduction. However, blue hydrogen will work and green hydrogen will also work. The reason the NTPC project is so exciting for us is that NTPC is really accelerating their transition to renewable power and have started also to focus on green hydrogen.

Jennifer Holmgren: So blue works, green works, and our partner is already doing a lot of work to transition to renewable power. So we know the electrons will certainly be available to green electrons and it's just a question of building out the green electrolyzers as well.

Jennifer Holmgren: Okay, and then my last one, can you extend on what the promotional advantages or the cost savings are in the circular joint or partnership or whatever we call it? What is that offer to Lanza and LanzaJep? It's not already available to them. Yeah, that is actually a great question. We have worked as independent companies in developing projects, that go from waste all the way through to sustainable radiation fuel. And as you can imagine, that slows down the process.

Jennifer Holmgren: And so what we're agreeing to do here is to have a single phase to the customer so that the agreements, the proposals, all of the techno economics are all done with a single phase. That will make it go much, much faster. So basically what we're doing is committing to faster project development. The other thing that I think is important is by thinking that I've been showing to offering the additional thing that we'll be able to do is really do much more in integration.

Jennifer Holmgren: If you look at our technology, it's the technique right now from then, ethanol to ethylene, the LanzaTech teams, the LanzaTech teams. I'm sorry, the LanzaTech and the LanzaTech, by doing it all as one face to the customer, we're also going to work very, very hard to do better mass balance, better heat integration. We move redundant equipment. All of these things will allow us to also get to a more cost effective offering.

Jennifer Holmgren: So the first stage will be just what the customer sees. The second phase will be how we integrate to make everything much more profitable and sustainable for the customer. That's right. Thank you. I appreciate it. Thank you.

Thomas Merrick: And we will take our next question from Thomas Merrick with Janie Montgomery.

Jennifer Holmgren: Good morning. Thanks for the time and for taking the questions. Just up to you for me, maybe tagging off at Jeff's on Jackson Green, curious just from a different angle on the second generation bio reactor. Is there anything about that second generation reactor that helps make this project pencil out, or is it just kind of a natural progression and timing matchup? Great question. Thank you for that, Thomas. Indeed, the project pencils are even with the first generation reactor.

Jennifer Holmgren: The second generation reactor makes it more efficient, more effective. And you know, when you've got a second generation reactor, a technology evolution like that, you're going to just start putting it in place, right? You always want to maximize profits. You always want to reduce costs. And that's what second generation reactor does for us. And so we intend to continue to implement it wherever it makes sense. Hopefully.

Thomas Merrick: And then on the project funnel just want to think about the back half of the years as things reach and meet FID.

Geoffrey Trukenbrod: I'm curious if you can characterize or we provide any more detail on just the types of project delays that are kind of possible. Yes, supply chain is the labor that just financial is getting things done or like general latency just kind of carry it on any additional detail for that.

Jennifer Holmgren: There are a half dozen or so significant projects that we're focused on in the fourth quarter. We're seeing revenues ramping up to the third quarter associated with some of those, but there are kind of material events in the fourth quarter. We talked about looking to transfer our first project, one of our infrastructure capital partners, obviously a meaningful amount of the quarter right there plus these other three or four. Certainly the difference between some of these transactions happening on 1231 versus 11 could have meaningful impact on our quarter, but we don't see significant risk associated with those projects just a matter of time. Certainly there could be some timing as well associated with them.

Jennifer Holmgren: Well, then last question for me kind of hinted at I think just wanted to get an update on Brookfield in the first project to be transferred to that partnership or just generally any time that you have on the partnership and that's it for me. Thank you again. Indeed, so we have a project that I can't go through multi-tiles right now that we are taking through to FID. The most important part about the partnership is that while we're developing the project, we are working directly with Brookfield who is providing input on, you know, FID is a fluffy concept that can be defined by many people in different ways.

Jennifer Holmgren: And so by working with them directly, they point us to exactly what they need at every stage of the game so that when we are ready to transfer the project, they're not going to say, well, surprise, I need these three other things which are going to take you another couple of months. And so we have a real project. We've gotten it to the very late stages of engineering. We're working with our ABC partner. It has met so far, even though we're in late stages, all the criteria required by Brookfield, we've just got a couple more things to do to check the FID box. Yeah, leave it at that.

Jennifer Holmgren: Actually, I should add one other important thing. We have a really robust pipeline. The only reason with Brookfield, the only reason we're focused on one project initially, while we could do many in parallel, if it's really quite important to understand how to transfer a project to them. And rather than just having too many projects that we're working on at the same time, we wanted to focus on one, transfer it quickly, and then say, okay, here's some rest of the pipeline, and move that very, very quickly. Thank you.

Geoffrey Trukenbrod: I was hoping just to be able to provide some key terms around that convertible note, the kind of maybe the rate, and if that's interest, that's paid in cash or in kind, and then the convertible strike price, and, yeah, that would be awesome. Yeah, Jason. Thanks for the question. Happy to try and hit on a couple of the key terms. You know, it is, as we comment on, you know, $40 million of what's contemplated to be up to $150 million of in-verbal notes.

Geoffrey Trukenbrod: The basic terms, there is an 8% coupon, it is a pick, so it's paid in kind, so there's no cash base associated with it. There are, the different adjustments to the conversion price and the mandatory conversion features, voluntary conversion features, and so I'd direct you to the 8K that we put out this morning that includes the documents themselves and some additional key terms associated with it. But again, it's fairly straightforward, piece of conversion.

Jason Gabelman: Okay, great.

Geoffrey Trukenbrod: And the follow-up is just the path to a break-even EBITDA. I'm kind of tied to this financing.

Geoffrey Trukenbrod: Are you more comfortable now with your cash position and do you feel like you have enough of a liquidity buffer to get up to break even EBITDA and any updated thoughts on when they expect to hit that important milestone? Yeah, so we are very, you know, pleased to have an additional $40 million of liquidity on the balance sheet. We do think that that provides sufficient funding through 2025, as you can look at our cash borne historically and the expectation that that would continue to decline over that period of time. As you know, we haven't provided guidance beyond 2024 in terms of the specifics around profitability, but we do expect to raise additional capital associated with either this round or worse. Okay, thanks.

Jennifer Holmgren: Can I just please piggyback on that for a second? I hope so very excited to be partnering with Carbon Direct. I don't know if you know Carbon Direct, but they specialize in carbon management companies. They have a consultancy piece that works with the Microsoft's more than JP More than Mitsubishi and other major corporations on really carbon management and how to think about carbon reduction, and they also have an investment arm. And that investment arm has initially focused on early-stage private startup companies, and it's now starting to focus more and more on de-risk scale-up companies like ourselves.

Jennifer Holmgren: So we are really, really happy to have them on board, and I just want to make that clear that they're going to make it tremendous partner and help us on our journey and very well aligned with the rest of our end-to-end vegetable.

Operator: Thank you. Thanks.

Steve Bern: Thank you. And we will take our next question from Steve Bern with Think of America. Yeah, thank you. Jennifer, you made a comment that you expect to get that funding from the DOE for projects secure by year-end. I assume you likely have a cracker lined up for this project, and maybe more specifically, the hydrogen that you'll need for this for the, you know, to capture the CO2 and convert it into first ethanol.

Steve Bern: Could you use the yes of the hydrogen that's a byproduct from the cracker and arguably call it blue given your carbon capture system? Is this a way to potentially reduce the cost of the process? Do you want to come over and project manage the project Steve? Because I think you're right on there. Absolutely. I think the carbon intensity of off gases that exist in the petrochemical complex that we'll be using and how we leverage those is going to be extremely important in thinking through this.

Steve Bern: And the way we're going to think about the hydrogen we use is to both look at its carbon intensity as well as its availability and cost, right? And the technical economics plus the life cycle will dictate exactly what hydrogen we use as feedstock. But absolutely the value of these projects is to integrate the value of these projects is to reduce cost by leveraging what's available. And I also want us to always remember that our projects enable us to create a roadmap.

Steve Bern: In other words, one can start with a certain technical economic basis with a certain carbon intensity and then transition to something more rigorous, right? Nothing says that as green hydrogen and green electrons become much more available, a plant that started up on what would essentially be do hydrogen and off gas from the refinery cannot become then supplemented by green hydrogen continuing to reduce carbon intensity. And I think what you're following is in industries like staff.

Steve Bern: You get rewarded for the carbon intensity of your product. So we won't let the perfect be the enemy goodwill start with what's available and make sense and then we will progress to think that raised the bar. And so that really is what we intend to do here and demonstrate that now.

Jennifer Holmgren: Thank you again.

Jennifer Holmgren: Sure. And at full scale, do you have an estimate of what the unit variable cost could be, you know, propound the Bethlehem just as a way to characterize this pathway as opposed to using a same based feedstock? Not today too many unknowns on the exact site, the exact hydrogen source, the exact cost of the utilities.

Jennifer Holmgren: And that will be after the phase phase of engineering and we hope to start that before the end of the year for sure and they get into early next year. So ask me again next year, please. I'm just one last one for you. Any any meaningful differences, the more challenges between this operation to produce, you know, ethanol and an ethylene versus producing propanol and then propylene is one, you know, any more challenging than the other is your microbes fully capable of producing either?

Jennifer Holmgren: So the base case ethanol is our existing commercialized micro, right, that we have so many years of experience with, you know, we had our first commercial plant running in 2018. The propylene is a genetically modified organism. It is one that we have developed. It is the chassis, the basis is the bacteria that makes ethanol, but it is modified. It is a more challenging step than doing ethanol, which is our bread and butter. We don't believe there are any issues.

Jennifer Holmgren: You know our process is very conservative, and we have taken it through the piloting, we've piloted our support and all our sun core demonstration facilities, so we're very comfortable and confident, but I don't want to say ethanol and propanol right now on the same grass, right? We need to accept that that that is still going to be a first of a kind when we do propanol, but what you said, which I think is most important, is crackers make ethylene and the protein, and it is absolutely LanzaTech's intention to lever crackers to make the sustainable ethylene and propanol.

Jennifer Holmgren: We will do it at the same location, we will make it work exactly the same way, we will integrate it in a way that the economics makes sense. We are trying to displace all of the commodity chemicals that are used today in making the products we use every day.

Jennifer Holmgren: Very good, thank you.

Jennifer Holmgren: Thank you, and it appears that we have no further questions at this time, I will now turn the program back to Jennifer Holmgren for closing remarks. Thank you so much, LanzaTech and the circular economy are in growth mode. The circular economy market size was valued at roughly 550 million in 2023, and is projected to reach over $1 trillion by 2030, representing a danger of 13 percent from 2024 to 2030.

Jennifer Holmgren: Together, we at LanzaTech are not just building a technology, we are pioneering that circular economy that has the potential to transform pollution into profit, and enable the economies to grow using local resources, fostering a sustainable future for generations to come. Thank you again for joining us, thank you for supporting us, thank you for giving us the opportunity to show what we can do with carbon that's already above ground. Thank you, thank you, and I wish you a great rest of your day. Thank you.

Operator: This does conclude today's LanzaTech Global Inc. 2nd quarter, 2024, earnings conference call, thank you for your participation, you may disconnect at any time.

Q2 2024 LanzaTech Global Inc Earnings Call

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