(Bloomberg) -- LanzaJet, a sustainable-fuels technology company backed by firms including Royal Dutch Shell Plc, secured a $50 million investment from the Microsoft Climate Innovation Fund.
The financing will help fund LanzaJet's Freedom Pines Fuels “alcohol-to-jet” facility in the U.S. state of Georgia. The plant will produce 10 million gallons of sustainable aviation fuel and renewable diesel from low-carbon, sustainable ethanol sources a year from 2023. Construction is “well underway” and some modules have already been completed, the company said.
Fuels used in airplanes are currently almost exclusively petroleum-based, and aviation has so far proved more difficult to decarbonize than other types of transport. But demand for so-called SAF is increasing as governments and plane-makers tout the cleaner-burning fuel. Shell itself is already working on several sustainable jet fuel projects.
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LanzaJet, created by alternative-energy technology company LanzaTech Inc., said the latest investment demonstrates “clear demand signals for ethanol that can achieve greater carbon reductions.”
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