Suncor Energy Inc. is investing $15 million in LanzaJet, Inc. a new company that will make sustainable aviation fuel.
Suncor Energy and Mitsui & Co., Ltd. are investing $15 million and $10 million, respectively, to establish the company, an offset of LanzaTech, a U.S. biotech company and carbon recycler.
The funding will be used to build a demonstration plant that will produce 10 million gallons per year of SAF and renewable diesel starting from sustainable ethanol sources. Production is expected to start in early 2022.
In addition to its equity investment, Suncor has contracted to take a significant portion of the SAF and renewable diesel produced at the facility to provide its jet fuel and distillate customers with sustainable energy solutions.
Suncor and Mitsui are aiming to invest further in the construction of commercial production facilities after the demonstration meets all its technical and economic targets. The phased investment approach will see the initial investment followed by a capital call once all the demonstration milestones have been met.
Mark Little, president and CEO of Suncor, said Suncor is excited to join LanzaTech, Mitsui and ANA in helping LanzaJet take off.
“We believe this technology will provide a solid foundation for the commercial production of sustainable aviation fuel and renewable diesel. These products are very complementary to our existing product mix and we see growth potential in both North American and international markets. Suncor is committed to both a low carbon future for our own business and to helping our customers, including in the space of commercial aviation, realize their own vision of a sustainable future.”