LanzaTech Global (LNZA) 9 May 242024 Q1 Earnings call transcript

Good morning, everyone, and welcome to today's LanzaTech Global First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions]. Also today's call is being recorded, and I will be standing by if anyone should need any assistance. time, of things Corporate this El-Sharkawy, to at President Vice Development. now I'll over turn Omar And Please go ahead, sir.

Earnings Good morning, Global Call. XXXX LanzaTech us joining Conference and thank Inc.'s you First for for Quarter

company's I'm highlights ending operational the Holmgren, Please Both reference well financial XXXX, we and website key in results quarter quarter. Jennifer and CFO, for performance XX-Q Investor issued joined On found press our summarizing also be and an today, today. by the Board investor our with CEO, our and the at this Chair Earlier Form summary Relations on Trukenbrod. www.lanzatech.com. for filed as can XXXX release operating of investor our as our presentation Geoffrey release a results Dr. quarterly and morning, March the report first call press the presentation quarter XX, our section

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

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

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

First, we $XX delivered Revenue financial million, first organization. increased results XX% and and guidance gross provided quarter. the margin approximately business quarter scale continue as we optimize and with year-on-year right of to line forecast closely internal the million, all of last for across gross while profit the costs in $X.X our of managing

XXX sustainable ethylene set opportunity recycling replicable of launch the further dioxide and [indiscernible] from technology for globe. nature validating of the highly project for Energy's capture transformational we grant. announced Project SECURE produce to land project detection our $XXX technologies This Energy Second, the been to Department commercial would has Technip across emissions, more transformative carbon a steam a receive groundwork of our laying than Energy crackers by where selected the partner Technip in million U.S. leverage carbon the March ethylene

we the represented maximizing of financial projects can ethanol-to-SAF base strategic in as and through January, we to marks parts of see Microsoft This of facility Southwest already The Climate at completing across fraud that an development LanzaJet new finally, while just Georgia. to our sustainable operational in the includes XXXX in the geographies. to investment we which revenue and not commercial it of and reiterating are is pipeline Soperton, world role and influential world's an year. globally. for growing SAP and commercial top continues This scale process an the line various this, the as the inaugurated to approximate expected investors In significant in to LanzaJet, midpoint expanding growing which growth our jet as the well investment quarter $XXX approximately our milestone for sector, noting to its broader SAF or last commitments From extraordinary we aviation XX% approximate Third, to continue facility $XX XX% includes this all gain scale, of million, the large achievement development momentum advance pipeline fuel, LanzaTech was the hold the million operating over from flexibility the for of our plan business. companies ownership projects to Innovation the year's our which largest advancing continue historic from growth of you LanzaTech interest and of feedstocks pathway. while guidance Fund brings at and and Airlines. production growing in our scale the extending the ATJ the of on million reflects financial with route million Separately, performance. per $XXX Fourth, economy our but round diversity some earlier XX growth execute alcohol accelerate in top gallon to introduced continue stages.And first

field the the with we Regrettably, I committed a now As Project quarter review have I project we due during proud we however, an the key culture are our report mentioned Energies. dioxide first without the safety. highlights recordable XXXX, at our did, calls, that incident in our injury any time am would office to lost in safety and incidents the starting from quarter. like sustainable we space carbon with in of in from Technip to to partnership ethylene one SECURE, quarter to laboratory. quarterly concluded previous the or facilities

of $XXX Practice million Department is to a up [ U.S. funding on the the U.S. design, facility. Energy X, The support construction of ] will Project at Project from shown and carbon demonstration SECURE Equity grant Slide and of As of a engineering utilization. commercial SECURE capture

licensing opportunity of XXX U.S.In block over in emissions a expect carbon to reach this on atmosphere products an technology, highly merger $XXX the of day, release the replicable shale. world crackers in with the be around licensing value need year million this leader at the easily technology we market dioxide the existing to annually global of with ethylene into world's to project its This chemical our projected depilate in globally, LanzaTech production immediate of aviation using By to offers this carbon and often fermentation bullish massive a on every of Technip per share to associated chemical providing sustainable fall steam for important global XXX. ethanol reduce is the offering we from cracker to by intensity ethylene SECURE of to for XX,XXX the ethylene ethylene this to transformational its than will of ethylene technology the finalize cracker facility SECURE the carbon year LanzaTech. in project market XX% capture We use is at global has fuel." carbon now as expected operating in more for the to to project. tonnes production enormous Technip existing ] Slide details the cash remain infrastructure. solution produce technology and to billion is Energy's industry open and of contracting and commence design "The this the capture commercial of models.Looking with modular [ rapidly XXXX lens significant an Technip key The chain on sustainable per Energies is to an a Project most also decarbonize curing with abatement and quote, market. we production dioxide intended work portion Ethylene are use given sustainable by there solutions responsible combining packaging major from the X, production countless at a ethylene the SAF ethylene building when ethylene to foams sourcing with fuel given closing as market which of the turn, However, XX% penetrate petrochemical the established to tons Project jet emissions referred production. provides

proliferation start-up transforms I cloud And noted broadly. be East was of of waste for exciting it the process. months earlier, believe fuel enables we production with of positioned to production the jet field LanzaJet SAF the sustainable world's more to increasingly ethanol will SAF through The As well feedstock SAF in of LanzaJet inauguration an radiation significant ]. biorefinery for few game critical in ethanol and coupled including a that SAF market and field role when [indiscernible], lines are in technology, play a into alcohol we [ changer. first and municipal facility, from a LanzaJet variety is a LanzaJet the

gas the residue SAF, expect to engineering course both facility in maximum will and ramp up gas This fermentation the end Zealand project during on the Dhabi SAF of quarter the take through government SAF of We producing production with of production sticking by take the year. New second facility SAF full the revenue that at New process over and solutions the our particular solids will to LanzaTech Zealand begin the that contributed quantified pairing within renewable biomethane Zealand integrated and product made the on output forestry the residents capability to and progress in diesel, or quarter. on densified technology a first pipeline the are of and technology through focus with good New which the commercial that LanzaJet by opportunities LanzaTech [ remainder waste XX% the to alcohol-to-jet predominantly of through [ SAF services We've as is ] in XX% ]. Abu unmatched we for the the unique our focus

permission advanced industrial U.K., the with design, engineering SAF completed through unit. the SAF in frontend in Dragon for Project and prime as the engineering the is and gas taking granted Our

XXXX our process the aviation of Project to the of sector, recently positive SAF in and the bring supportive increasing in XX% mandate X% all announced to XX% Department in account received mandate SAF specifically is the funding The utilize U.K. XXXX. and by stipulates FID. SAF fuel Dragon. for We is that The the transport threshold and market with U.K. for overall to continue to that U.K. to Project

and Importantly, pathway acids there ethanol. SAF protected produced hydroprocessed becomes means that production market such the provides SAF or on is time, which over stringent U.K., via advanced waste-based the a more from production in fatty mandate the for HEFA cap esters as SAF a

[indiscernible] the supporting SAF to can a significantly this increased been has price obligations result SAF pay the their mandate, or Additionally, processes price in of buy-out market. further as the of out of

SAF aged welcome proud alcohol we ethanol co-investors waste-based of ownership strategic provider are our feedstock into [indiscernible] of extremely production, new and role a to world-class addition In of LanzaJet.

and ownership by We continue equity approximate today. LanzaJet LanzaJet an XX% round nondiluted therefore, time. been our to to in at has raise LanzaTech unpriced recent is, this done in hold The

issued recent our increase capital build to shares plants by raise mechanism ownership LanzaJet own and original percentage Additionally, not which SAF additional their co-investors LanzaJet others take impact technology. using the does the LanzaJet LanzaTech as

Slide and the on Field the per construction the fuels commissioning the track and quarter landscape approximately X in stands than to The currently X includes and category of going count project installed project forward, fell our commercial ability Project abate the up tonnes ethanol for our the progress our would demonstration that note Please the ArcelorMittal separated licensees ramp to to in Biorefining project on in at tonnes LanzaJet year facility for Moving This The illustration. maintain otherwise facility commercial The from pipeline, production scale capacity we production updates will and Biorefining which with in we're was at facility on have out in this production XXX,XXX the we of make projects more Banks to operating administrated. this second total of purposes operating enter both and X.X project project Indian total start-up separate million commercial across Belgium. scale and funnel, pipeline. on parties. commercial is carbon LanzaJet X full parties that year. the to Oil's of is in prevent year China perform, full now plants per previously our India capacity the provide continuing LanzaJet continue to from

ramp to services we hand global diligently engineers up hand customers will Our full-scale successful working be within in are operations achieved our XXXX. expect and production, with that

and of of the Looking have into on at into X first net additions advanced qualified funnel, the first top from pipeline phase the the project project the engineering quarter engineering. in opportunities of net we early-stage position

we move the in the several investment year. to expect this engineering As half that construction and second mentioned achieve projects continue decision update, final in will advanced during of last our phase into

packages revenues As respect the projects result, expect with same we a along those from line. to time to the equipment materialize

In the while with to first Brookfield project working them depth we're our licensing additional pipeline, capital year this ramping partnership to opportunities. commercial up project addition partner significant of our our to of under transfer development infrastructure the

from revenue with to and of focused are in close we satisfy working would in financing XXXX. we partners sales carbon the agreements negotiate several of the partner, the to business, We're first our developing Additionally, chemicals Olayan and the venture continue we quarter into market our growing project In supply XXXX China Arabia customers. Europe Broader opportunities on with pipeline smart demand joint the and Saudi smart a in these Middle in on East. and cabin global optic

driving bear this [indiscernible] and accountability We earlier the first streamlined in commission cost it remain bodies to CarbonSmart the final that operational throughout with settled enhanced underway more the update savings last before now executive approve work execution by efficiencies circulations beginning the The quarter. treated. for ethanol fine already it and reprioritization the fuels Geoff, European year fields reorganization revenue to Commission at with are expectations with suggesting other be and share market, that we reorganization begun company. see a will the yet now latest provided about not to a certifying low-carbon are turning announced new over are the Actually, initiatives fruit I and the Commission the continues also upside fully one guidance to the We've optimistic summer. this greater associated to brief technical signed how the these materialize. team is estimated in transparency European specifically wanted on

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

with count at continue will people, the year we at our below Additionally, global total head to is the which count XXX year-end during expect all XXXX. below head

financial global go business provide results in Geoff and Geoff, to please on financial commercial core details on a on are focused we With the growth committed our delivering the team, I'll we've turn to call that, As market. to the our performance. over ahead.

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

million the right the on revenue for this year-over-year government the seen from quarter to forecast in $XX.X first line As quarter quarter. the as last as sales first revenue by of customers CarbonSmart advanced the driven XX, And we've with XXXX X% Contract declined chemicals on from in and of million, research ArcelorMittal approximately & across total Belgium. The first revenue grew associated revenue of duration. Slide laid side, in and million well the in quarter. $X year-over-year customers year-on-year Contract growth. guidance Biorefining CarbonSmart the several projects supported and both out and million, start-up side, by our in research grants, stage JDA through in are recurring $X.X performance was of & services $X multiyear but in typically which revenue engineering JDA with engineering services saw both early from strong facility contributions was our

as basis full reflects respect mix. during engineering we percentage approximately and project come the to our projects up This the and the of add & increasingly a early a is and profit work continued recurring Notably, attributed of year-on-year online, to revenue high-margin dominates gross revenue and revenue project, year our our improvement opportunities nature first over XXXX building smooth year-on-year margin. to mix. mix gross in focus anticipated XX%, the on overall driving mix services stages quarter, in of higher margins larger revenue revenue margins quality XXX currently was each Biorefining quarter, quarter gross our Importantly, the which revenue With of to we development composition will resulting decline consistent Biorefining $X.X during uneven as revenues earned in of the improvement JDA of first Contracts continue the expect million. become more points XX% of

to gross to XXs for the high As mentioned to the XXXX. expect year continue mid- be we margin previously, in full

research XXXX higher expense associated expenses first On with Public the XXXX in expenses and year-on-year operating development slightly the operating coming $XX.X to and first and Sequentially, from previously reflective expense Go XX% reorganization. XXXX side, transaction. in SG&A personnel costs QX increased largely reduced million, due in onetime our of the associated quarter, announced expenses severance with the declined bonuses and at QX in the of quarter

the As CapEx organization. the accountability the functions newly track the project we underway executive noted, the is our the we exploring reorganized prior last of are cost first previously and reorganization announced XXXX year are full to XXXX quarter and years. continue throughout savings year million, spent well and Jennifer associated with reductions. that quarter $X.X for The initiatives on consistent estimated complete improvements totaled deliver or for full of efficiency implementing at be also to CapEx couple during CapEx to below cost the and

cash for and to quarter. adjusted Turning the EBITDA burn

adjusted a gross $XX.X to the the million, first as quarter-on-quarter As quarter XXXX. loss and result increased quarter as of largely lower expected, to profit our in compared of QX the EBITDA revenue fourth

the QX. of year the large materially XXXX loss annual premiums of total million, others expensed revenue EBITDA a Our quarter-over-quarter in and throughout insurance quarter was are also lower number including result which were adjusted payments, burn compensation, was larger the up in $XX.X cash was that incentive a and XXXX as paid by impacted

in contracting noncontracts, some one issues quarter, simple a a in and of end to delay quarter the the payment. Importantly, of expected stand but associated we multimillion administrative this receive the with also dollar in payment invoice resulting our

our that As for not rate the burn year XXXX. we this average do quarterly a full rate indicative of burn result, believe is

Turning to the balance sheet.

the today As million at-the-market and of of flexibility ATM With outlined Form objectives company's on our of cash We of had of issuance to or our of shares. universal million investments. SEC prospectus completion access we have on we the that also the includes as full primary financial statement plan on we so, the even and than March do that additional we're XX, confident business a $XX.X more utilize XXXX. hand, with $XX to quarter passed million execute or And offering of year our announcing $XXX registration recently in opportunistically we for the cash, having hand, good year shelf became an that plans on of cash to eligible the at restricted and a we no though XXXX, us combination and cash filing said, housekeeping, the common the present S-X including deliver anniversary on with ATM tool X corporate a provides have believe to a filings it. that with the remain capital,

sufficient believe to we on and objectives obligations. have near-term our liquidity execute we While

our We us opportunities profitability. these to financing will achieve options to also continue explore path financial we opportunities to objectives. to our to best enables to to additional maximize supplement Pursuing alternatives growth computer and opportunistically continue potential growth flexibility and longer-term positioned financing strategic we accelerate as strategic are to other explore patiently ensure our

a quarter by into ramp revenue year, the construction. quarter-over-quarter of we Looking projects ahead expected in back into multiple very with to underscored XX% the and QX half development strong moving the anticipate an later of a of strong continue to expectation rest to XX% and quarter-over-quarter second the growth of and the stages year,

engineering project we EBITDA. be to several $XX as that packages year space growth as outlined anticipate the SAF, million with business. sales Project the the for enabler will $XXX of As XXXX and to across LanzaJet decarbonization we new expect on the to well address Slide related kickoff full on Jennifer proceed an in Biorefining are to investment revenue to growth significant SECURE, components our the XXXX $XX and $XX of well alcohol as need services projects Biorefining year final we for projects, growing million to guidance million as revenue, shift in demand by total reiterating production We decision are mentioned ongoing and million our an full to will and adjusted the of year as XXXX. achieve equipment negative of million come with are the construction and with XX, the in the Technip waste bolstered and revenue from multiple working $XX growth we obviously all opportunities to to earlier, And back-end DOE-funded including codeveloping the weighted also of broader jet for as phase ethylene of globally. the anticipated ethanol of

growth Finally, the to our JDA turn will Contract call I call we year-on-year open for the research and for remarks our moderate we Jennifer Q&A. before continue business With CarbonSmart to anticipate business. Jennifer? closing in & that, some back over

Thank Geoff. you,

a performance tangible of numbers. where a It's has a is set progress in of a impact. small field significant Our victory station just media every not

industry new essential. We the in opportunities in creating us of the vanguard are are it a only before part as economy. The is are that not progressing challenging as but is at an cornerstone

and to-date of call. quarter, outlined at coming close the want the to to back with the I was This key quarter I takeaways outset X

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

the replicability Project this technology of excited SECURE win, the we're Second, was and about integration. project a huge and

Thank and for Third, year not and we're massive in financial Together, support. this positioned continued demand and simply you is growing trust SAF and we our sector. a reiteration our your well full an participants finally, fulfill-based continues Fourth, this operating and project progressing to commercial enormous are be economy. XXXX guidance. ethanol, of in pipeline

down and Q&A, future. the the we for the line sustainable architects now foundations can We open laying for Operator, are a please. builders

Leo Roth to Certainly, this Dr. Holmgren. at first [Operator Instructions]. Mariani morning go MKM. We

side just on Wanted here. start revenue to the off

expecting If roughly revenues XX% XQ revenue your of in your the about that gives XX% guys versus revenue you're of right, do half XQ midpoint math, in if I first guidance. heard to here. you year relative the So I your you growth full

you a has be significant to year? can pretty on you a in the hit guidance 'XX, second little Given this just to that, of hit bit which expect half obviously elaborate ramp big what to that

being thanks always. as and Leo, Yes. on for

yes, little we the put for a growth a that. over to reiterate of quarter, so bit So range XX% QX, just to first XX%

So that in half well. there's a year. there projects little does reiterate finding yes, we variability the back guidance. of [ But in suggest We bit that certainly ] as did ramp expect our a the large of

those to well back stage the as construction So function into do as variety the revenue. a ongoing that projects expect things, of of half. we a be into in components in our as the already as moving of revenues has other It's projects a of moved well including combination

Okay. cost hoping could help on little you And just the side, a here. me out bit

severance that to quarter? for some start in the plus key second So that it onetime then versus there and like here those up in quarter is Could about costs, take the cash sense I quarter. got maybe quantify G&A, looks million you some R&D I'm I in it cash others. are? the onetime just on at if costs key your was what dropping expectation were the the first $X.X looking some And costs there, the fourth costs

largely personnel These cut headcount Yes, it. One These costs SG&A costs. was costs. the in are of and Leo. There's aspects are largely. X the R&D

were slightly in QX, down. so And they

XXXX. recall, in our with bonuses back associated we As cut you

as specifics but we I'm year. that in as do associated rest with costs So reduction slightly off [ in in of and severance costs, onetime going a onetime in the that noted, will be it's those to costs, of the were, into the that not up for for year. announced QX, cost Normalized expect to you there ]. the last well severance reorganization we as some get QX of QX the resulted some trail

Okay.

items those are in quarter? So start cost saying the line going quarter that to on second cash you're expect We quarter. cash for the to down your reduce costs going here

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

those you I for some pipeline. you wanted or mentioned, added flavor to projects the you if ask and that lumpy being some what give of and if say, should could pipeline I pipeline that were added as projects the will that that be to in about wondering project was quarter-to-quarter. growth us to pace to projects again X well, expect I terms maintain

because me that. little be pipeline Deposit stage just Let us, early lumpy [ a silly. for it's ] address and will

However, we the are and through projects top of projects adding both FID. to to the getting funnel

to the The we to named So see do are tough are that the being of of are those construction a added expect funnel, front partners for the this that however, to not of year. fact lot projects me discuss partners. specific because the still

see the filling partnerships the plans. are companies companies done However, and starting interest same to from up we're to projects. with starting start that see funnel with China, we overlybuilding to are replicating also projects We've related that in we to partner, X have

my earnings question And outlook. it. the is second Got just on

around to And of your have that XX% think that growth Is expectations? previously EBITDA I mentioned XXXX. from any still color you in breakeven XX%? in other terms

on. question being for the for thanks and Jason,

our haven't significantly and the we expectation grow as anything will drive again, to we do to at gross specifically profitability. ability know, we beyond associated haven't to profit, the a get function beyond for been just grow about provided this point top that guidance our in And XXXX. But our you year-over-year. specific think line will to guidance is time. growth. continue We of is XXXX, company profitability As that any And path the our

to Montgomery. We'll Thomas with go Janney now Meric

SAF A for the on couple market. me

to that. SAF, recent coming just then use And really then Firstly, model, then stood curious what's if great after your second one that assessment on you the of follow-up the current SAF feedstocks anything And to change how in Brookfield one it? cost out the do in to your there? And reactions demand and and you to terms on thoughts of supply, expect quarters?

Sure.

start, the question, and me Let thank you for Thomas.

On the SAF feedstocks demand for a market, key priority. to see as waste-based we continue

disproportionately stats they in they you targets other government and words, incentives non-oil SAF U.K. also the saw of think factors. grow really I the greases demand and terms but and non-HEFA in grow the demand,

really talk well see waste The we're that you're feedstocks. to waste starting shifting demand very use since people So all in is feedstocks. our that about we positioned with to fact

However, I expensive. would be also can more types say that of these generally, feedstocks

mandates increasing that waste towards so market what's they slowly so a are And without pushing that happening creating the waste. inputs the unduly is are

it's So advantage to can that hydrogen do to excited e-fuels, COX we're lens about make by trying ethanol, how fact also about being is excited as to because LanzaJet. create path to disproportionally in the use and be COX happening, converted coupling really favor ethanol is we are that We're something that if also take feedstock incentivized a globally. SAF of us that's using And plus then with industry. know, you for happening can

So portfolio intention, have and find that's are few but in these least to at we're that's they quite that say. them would market our also ready. years not and we governments next be or in more when measured what been our to and be things they're be the seeing but the in going incentives, more realistic And project saying will today,

the fuel. line GREET of GREET be model. and your question is the The a model the intensity of bottom second ethanol second thing are around for House out you to aviation the ethanol use know, And production to carbon asked sustainable to done, that. utilized And corn White if measures I used the has as enables reduce corn you question, qualify it certain has sent to direction what the would was say

that difficult it in think path in they win, for in there a United emissions. both also we which the a producers participate can picture on shows the United here reduce market States, participate how big for because clear it's producers no States corn So ethanol them was to because was carbon they the here in their corn could

the so basically question. shown And that them participate. addresses that has to your House Hopefully, White path enables a

it to also I about Brookfield, I'll think you to wanted you. ask pass back

comment I'm potential gets on the future FIDs And one first the if thinking specifically after you. transferred. could the in unlock Yes. Thank of additional wondering just project projects. about Brookfield, on for you

Right.

you what define they would the them, if project we're for doing understanding that them. our the that first in have are very other defining focusing we is see that, a We This with into What on pipeline one to robust something pick it for project can to project go doing will. to we we're our a So each need projects is makes what is all up. transfer be do first and reason. them and it to lockstep very the very that and good pipeline, on a Brookfield closely we work of need parameters

getting project have other and gas So we that while focused we moving to so like on transfer. how along a types pipeline are that robust have agreements only parameters certain on one clear things, are of we we on

we is I the that is and more projects The at the as starting lot other with Europe quite a thing America North to in important pipeline, more Brookfield we're and look North of able as America. that see and interest think are to U.K., well in but

projects those enable and Brookfield approach So we're to excited about the partnership forward. to move super using

now Jeffrey to Thank go next Partners. Research Campbell Seaport you. of We

Congratulations developments. wanted Project a the I all SECURE. questions on to for positive few ask

gave to us project, be plant million ethylene output the $XXX the number for costing wondering I an the would First you think what output but from construct? I ethanol likely of all, was

number, So ethylene be to the that plant meant the output decides is this ethylene of production producer. an to

to The the less than are into the ethanol ethanol plant. XX%. yield all losses So ethylene straight will go

ethanol So is close to number basically, number. the ethylene output the very

compared typical trying Maybe I project should to plant the is LanzaTech our rephrase does XX,XXX? question. the to I'm how this understand for What

the for all question. of This will and ethylene. per of It's to plant the XX,XXX year. tonnes ethanol site, an per year, go straight you Thank tonnes is the Yes. XX,XXX ethanol

forward? be to going projects and can smaller profitable? of construct are approximately looking Or size units you that Technip And

can what we both smaller go And and starting standard sizes. we're is larger. to we're So to do have going

the because you in use sizes, Jeff, that as projects. So of our standard is multiple XX,XXX we one our know, of

bigger. half We then standard, one also of and size we're using that that now also go is have approximately we as that can a

units trying with much way are do this more now, company faster that allow than to engineering a create bespoke and package especially opportunity. trying do every size more as the Technip that we partnership will units because the goes us is work in and to disease rather and in what for customize much, So standard to than with a

that question, that your is we're is there reason. exactly and that if is doing So for what that $XX,XXX

included the answer, might Or to if be I guidance? Was heard appreciate remarks And be correct? them like and XXXX. would in Project No, I there correctly. away that this Geoff's a guidance? bespoke. actually great color SECURE current moving in I'm sounded from if in from so, It that addition that's revenues some some is at point

that, with be question, DOE the in anticipate we the Project the timing year. that's the in year. working hand expect back start the hand time do in the currently Yes, accelerate contracting That associated to uncertainty. revenues is back we our Thanks that of the for but half pace associated associated included the Jeff. half will SECURE seeing to in is of The in work that We're administrative the do guidance. with with we with finalizing

I we as earlier, mentioned again, our As adjust do forecast. probability

we to the so range. expect us in that And leave

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

starts ask let to allocations coming production SAF beyond. are and LanzaJet going question once me you 'XX I it then quarter one get in and of wondering just the was to the the I'll how And market second manage off.

has we Actually, that LanzaJet elastics XX fuel. offtakes. for all have of XX-year

plan spoken that offtake the being each XXX% all the that can the them managed year. so important element of way is it'll So way one that for in the that's the of production their through offtakers that is they for. to in one first without a is spoken is be share of and intact line fair But

America. to Byrne [Operator go now Instructions]. We next Bank of of Steve

off curious about ethylene view where CO the a for just having furnace perhaps of you a ultimately, this of the Project for the ethylene. ratio Have coming it pilot the help. COX be this that have got and cracker an guess, do curious done But the on of you I that to I'm about you I production testing at was of cracker, some the also at could SECURE. hydrogen cracker cracker. already choice variable costs flue a gas could

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

Often of little a are complexes long bit petrochemical all, right. on that's first hydrogen. So

could utilize co-production in is that So of some off there the integration. hydrogen that cracker we

in intend cost. terms worth be of variable at the will end biggest cost The to that we do this, bring which that's the second hydrogen the to we are thing that if into green is fact driver noting hydrogen, in of of the day,

green integrate of amount impact all, COX that will into the plant. of cost a so we Why know And that cracker? First production. of the use hydrogen can we from

looked have that gas We very at as contaminants carefully the well.

say of the integration what's opportunity very But nice important itself And even us. a an is is is the to I done is, we've work Technip actually ethanol a quite ethylene shoes. with the bit made Technip foam did work with ethylene for EVA we integration know, you as the cracker for that more reason So for from the on that ethanol on opportunity. that our

you ethylene back, the EVA. if So take ethanol is we've you production, materials the the on [indiscernible] partnered sustainable to first in fuel know the a step aviation from Technip if But made making of with also production. their them the even for further recall, step course, and Hummingbird ethylene ethylene already you

we use output only that note cracker, ethanol not with the our can gas that very we So Technip. we nicely know do integrates from the

than producing a can the that ethanol, add different we of the we One that the ethylene gaps at been have have transporting cost. location ethanol had is

directly chain additional integrating materials so supply there a is movement there that cracker, no are supply of cost. or our chain the And cost. By a into ethanol produced, is

into is petrochemical that cost polyethylene, the PDC. materials COX MEG And it also or so polyester a downstream are in further our the believe is beauty production, derived drive drive from down. this other cracker most crackers even complex of or integrated course, with whether ethanol, EDA the those we for making we of how can costs And of be integrating

And that into produced you ethylene back our mass also to can to in in into both integrate the emissions integration balanced a a means end reduce with it's the the beautiful way the immediately of so way COX for us, ethylene see, production. a the cracker. but start can And that rest cracker, the as with used ethylene be

way So we to think beautiful, a to we this point where materials get COX. ourselves produce is from replicable a just

gas makes I'd Yes, plant. similar on ethanol question an like the to a from take sense. off

could to use the CO, the a ethanol ethanol and industry is ago more ethanol there's on trying mentioned an could is ethanol be decarbonizing about the score. SAF. just other an conceptually, to to build more you challenging, the approach CI and plant COX and wondering your may to few decarbonize I'm convert ethanol minutes the You I guess lowering move and plan into down flue that whether little or very technology gas. it's at but wondering, I'm not that thus

absolutely. Absolutely,

off sugar-based correct so facility can that And comes XX% with, to begin facility of COX. an the into COX. ethanol are of right, goes sugar, that you use production production we that carbon

hydrogen You windows, than and we States in and is ethanol sure farms. the convert by available. making just United harder difficulties Midwest us said production literally other or to be for of production might ethanol wind have feel it it But corn the a the surrounded lot

production hydrogen. There And power. access, is so there therefore, access to to is of renewable the

harder COX ]. any converting to than converting feel ethanol that actually And is not so [

reutilized that back make produced ethanol carbon the could The COX as on plants means the reducing ethanol original and say awful of ethanol, end there enabling be ethanol of can to resistance make I second more intensity is about there that more more is, we sequester is and COX concern of take it, that SAF. be pipeline, would lot and to thing more the that and to an also

by of it's biogenic. the that it head. beauty the well, that is hit on you right way, COX The So as

of And COX. are so there biogenic COX reusing derived drivers globally, necessarily to lot a versus fossil

it's massive win. a So

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

have for gentlemen, closing you appears like Dr. ma'am and [Operator today. any comments. we back I'd Instructions]. it to turn further things no questions And ladies Holmgren, to

It movement legislation pioneering important is waste that's that is again carbon. into space, is cannot the is as chosen of we It's perceptions in lean joining paradigm inspiring. you the are the us. in And energy innovative sector that with energy friction MES We're rife to that. process we as above formidable already we've you to Thank are a giving remember complexities. creates true new task us as first that believe with the opportunity production friction. the that to of into path this again kind championing. is that very Thank the can for utilization, again carbon for that for aligned altering made. what yet Thank fully supporting to be us. overstated with Infrastructure a and because we show where you do progress ground with be it

Holmgren. Global much we Thank for will great today's that Call. Earnings Again, wish gentlemen, all a conclude and LanzaTech joining thanks XXXX so you and Ladies Dr. us, Quarter First day. you,