LanzaTech Global (LNZA) 8 Nov 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to LanzaTech Global, Inc.'s Third Quarter of 2024 Earnings Conference Call. [Operator Instructions] Also, today's call is being recorded. [Operator Instructions] And now, at this time, I will 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 LanzaTech Global Inc.'s Third Quarter of 2024 Earnings Conference Call.

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

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

non-GAAP to EBITDA. these In the call addition, of turn our see Please earnings GAAP Jennifer. adjusted to financial we a measures. With release directly including reconciliation comparable will be filings I'll today, discussing non-GAAP and their providing over measures that, and for most certain measures

and and news It's today. LanzaTech. been we joining dynamic you, Thank everyone of Kate, appreciate time your support and week ongoing us a

the the address room. let's in elephant First,

than LanzaJet and to million This shares second $X.X issuance event third of to quarter quarter in sublicense of the to LanzaTech million, $X primarily to in another while the that million ethanol that for close quarter. quarter-over-quarter market market One, our we QX still doubled depressed about Our due target below in was were our similar quarter. And in a of have revenue revenue event, with the in would associated below expectations to the expecting QX, second was $X.X significantly target. resulted the $X that dynamics X factors. two, tranche being pricing to was million third revenue more our CarbonSmart for LanzaJet due

on partners X develop accelerate actively profitability. Having and scale our commercial revenues material the evaluating are want the with I business up to reduction opportunities know-how also and worked Indian Oil activities, the commercial like and start evolution commercial projects. you we construct across to our about believe we talk to as operate to While business have focus to model as today opportunities and cost reallocate of resources own established well accelerate we Shougang, to and infrastructure biorefineries, ArcelorMittal develop and Corporation with

allow technology. grown a decision allows licensees not us the licensing the with of tough which to rapid model leaves upon a has LanzaTech cycles capital-light scaling, adoption While primarily often and is value for it dependent and full our that of us capture business our does model,

the can and also XX projects. This cultivate commercial their to for our be the which performance a a milestone, as year, to and seen Project Asset the rapidly income a partner, significant to past through project which including achieve have our positive of first expect XXXX, has in Olayan years, meaningful model business agreements where the committed in which our have ethanol-to-sustainable East, pipeline to should we today own I'm that and business which Brookfield gallon projects. It creation on over the we in of million and greater product a and of expect will enhance waste-to-ethanol expect be greater the developing Middle our project seen evolving with be develop venture Over our capital in months in which in drive to is fuel major and project can LanzaJet been be And the will per to course SAF and utilize expected is Norway, in seen amount we be as a ethanol decision million profits complement LanzaTech recently our impact year have fourth in within X timing the for we $XXX announced EU-based to ultimate technology from our we of opportunities another we it can which quarter over to Drake, financial reach our economics, which which Group we last Project finance have of investment these via announce it and it project, for convert Management, Drake U.K., region. the finalize to been control if developed aviation LanzaTech's growing more licensing reached evolution Dragon the platform X upside our excited capability expected. Comparable Project final infrastructure and the finance platform. such projects, performance LanzaTech that joint and

construction FEED have needed agreement a intend commitment investment the the FEED agreement finance the into project fund to decision work. remaining LanzaTech enter we for they completed with partner, rights certain Engineering limits final with an financial inside or that fully of work exclusivity in I'm development project expect and this this financing entered for reach to development and reach remaining into project, battery have Front-End whereby in announcing stage XXXX. Today, the acquire of services and this this and to We of new a Design and the capital

designing want have participation impact more maintain XXXX are on agreement own Rather, first not We expect we more already significant on project and of this that and and exciting in these basis, strong which million is meet and the partners and various project adopted a multiple of for this development to our our financing control with capital then shifting why received partners' developing we development. Securing and later capital-intensive time-consuming, potential additional with on is clarify its projects projects success, by risk with securing XXXX cycles taking project partnership shortening about for have expect to partners to associated binary upside approach project taking fees we're our model to results our of ourselves to a we're greater development the visionary and where stages the $X partnering projects quarter criteria. the project stage life capital especially partnerships upside finalize in stages in project-by-project in this business and capital world-class individual agreements. I difficult share and as company this positioning investment from earliest upfront financing development we projects. for

and access tons, from X-stage order also our to in ethanol with is million licensee to $X thanks developed million X,XXX to make This CarbonSmart we larger CarbonSmart and continuing potential customers our of to is purchase $XX our boost which grow our expand the progress future short-term longer, allows has for to to a ethanol the trading a Today, with potential a XX,XXX ethanol significantly generating biorefineries are ArcelorMittal, offtake revenue margins. to million revenues. our to CarbonSmart volumes enhances business long-term annual commitments our ethanol announced plant. X-year contract to a $XX to with product its also agreement commitments, a contract and agreement, first customers per our foundation potential delivering produced year. This We access we and which from ethanol annual China

call, is a continue speaks in and we're since the XXXX why earnings to impressive beyond. and back about build LanzaTech at strong last further solid has talk accomplished what position foundation we let's truly we look growth. for If Now long-term for to team our it

that several First, the we projects on expect to Freedom start here producing produced producing fuel produce and ethanol interest produced and LanzaJet's CirculAir, What which imminently. SAF aviation Australia significant Drake, all with SAF U.K., to feedstock waste-to-resources grow reinforce is the which market ethanol for provides for U.S. right expect India, leveraging barrels sustainable the along the fuel LanzaJet. The from demonstrate ethanol LanzaJet's in for we critical the announced facility in aviation these in addition it. and in Zealand partnership technology, to pool projects through a LanzaTech we the underway with projects sustainable and global source massive There Fuels of milestones feedstock our offering technology. Project interest from is our is our of ethanol projects to joint front, in the Pines the underway, SAF experiencing New growth multiple are have EU, in

the assess to feasibility as for grown feedstock work expanded Zealand This production upon Sustainable the also solid During in we're the our the and municipal third successfully their scope September Fuels municipal in Japan. at waste-to-ethanol the agreement across to licensing waste to waste is projects develop project SEKISU SAF we master our around solid plants for to with our planned adding SAF study use with quarter, New a Australia, waste. feedstock with municipal Zealand LanzaJet a of feedstock as in first as our builds woody refinery completing production solid of Wagner Port work after CirculAir ethanol waste of Brisbane. And doing signed local for New locally multiple we the that a using

replicable this plan, blueprint but stages utilize truly early carbon other global businesses about follow countries the in a for the to to local are on executing are We in and developing lock of and access how garbage. excited

progress production. to now with feedstock for as a industrial off-gas ethanol Turning

first-of-a-kind chemicals, and results CCS number industries. and the in of provide Norway the Metals, and the the Norway to hard-to-abate situation. see ahead abate to Our and with are in grappling other with work aviation shipping we carbon we Eramet sectors companies what leverage collaboration profitable we're CCU leading-edge we industrial to cement, replicate facility doing integrated decarbonization can solutions a to to among for where hardest believe be designed same represents abatement avenues achieve

October, be significantly and the and grow to animal we our to our produce hydrogen $X single-cell an designed anywhere trillion oxygen that protein, Protein. expected ideal COX, we're reach, estimated In As LanzaTech we product expanding ability in biorefining expand capabilities. can platform's product ingredient protein also announced calling food The Nutritional for be early nutrient-rich our from produced is we're market alternative a our to pet global human world. and nutrition is feed,

been for produce capability have bioreactors protein a primary co-product developed have as the years product. producing as Our we ethanol and to now the to protein

initiatives pet continue months we animal, with at clock to the human focused aggregate where Norway, Several where of are Protein strong of on we we are of results now Project demand of agreements; timing progressing With have Nutritional uncertainty, for the outcomes. Those range is a are a our commercial of review element production Project we develop some LanzaTech to enable development we are food of which well. Importantly, scale. To this we project producers close, to partnerships in and to the finalizing us in largest to SECURE, quarter time in package preparing Drake, potential and right and year. in left, fourth have initiatives QX execute in large nearly on there's announced process. which X finish a we Brookfield; what for lot the a year still March by FID have financial

finalizing Energy. contracting We Energies of Technip the on the framework are working with Department and

long-term cash will next additional LanzaJet liquidity. well. It's projects issuance will we to the LanzaJet will that note has unlock of that important improve be will our of development to access accretive our our the economics. time to the of related making financial model LanzaTech forward expect with as timing business business the am we as certainty we're uncertainty to go and and moves event significantly lines short-term these bolster Additionally, and I that sublicensing shares confident

portfolio, We I'll more in to flow operations of allow our accelerate to cash moves Geoff feedstock, update. path for offtake expect asset the will increase which should and financial us turn to generation it with and profitability. And these the control our that, our over

for associated and details on thank and quarter. XXXX us call. further joining Jennifer. on our you, everyone, results third you to details the expectations quarter of the going for provide some Good I'm with morning, our additional the Thank fourth for

signed expected, but As mentioned, than headline been agreement had lighter have been revenue expected. the in as Jennifer third expectations QX in line LanzaJet of sublicensing we with for quarter the would next if XXXX was

joint additional the million million of $X.X million into we million million was QX, research included which revenue received biorefining LanzaJet sales. of of excluding to share of associated these in product $X.X Drilling categories, from separate revenues, Biorefining QX, down revenue related reported and revenues in consideration to QX. the $X.X revenue million total contract $X.X $X.X similar For agreements QX revenue, with of $X.X we development CarbonSmart and

this down of key being variance revenue $X.X prior to million, higher reported services QX quarter engineering year, QX compared item of the the As XXXX. with was being in

Specifically, wrapping up. Dragon high particularly Project engineering with third was that associated in quarter the work last year of were services the as

targeted forward, which have expect receive of government product new third nicely for product quarter-over-quarter $X.X significantly sales as with primarily work funding of 'XX and least built growth the fuels second few these and before where Going research the million, revenue a in the contract XQ line million to having 'XX year, The was quarter revenue results fuel activity. downtime XXXX year monetization announced to $X.X back to supply XXXX XXXX, due quarter-over-quarter licensing and XXXX in development we upon and earnings we during at related quarter government prompting China, of in of in announced expect sales to projects sets in our we incremental CarbonSmart, contract for Drake trading $X.X done for some right but in to to prices structure on third kick ethanol pieces of by sell with million fourth $X.X uplift $X of us materializing XXXX. We to sequentially call. We down see projects access for volumes, had quarter scale other and be third up and in ADAPT quarter to government pipeline. Joint us was the quarter the other partners the this Project before in completion for up category. And from place, had to end volumes, this increase of our chain we million more dropped direct our was driven the October which to Project XXXX. the XQ one million compared for projects off engineering

our Going expect which forward, more volumes beyond. in ArcelorMittal's again, business fourth will to for CarbonSmart access have plant to we growth and from quarter drive

as Turning now for to the as associated work $X.X third revenue, XXXX of of for quarter related XXXX. biorefining relatively to lower-margin higher million was quarter $X.X the the function compared not for additional was $XX.X with XXX% the quarter sales revenue revenue, of which revenue allocations margin mix, another and and was headcount delivery sales. Gross XXXX million second CarbonSmart third cost including million of and during CarbonSmart to services a This which we of was low fact our XX% quarter share associated JDA largely LanzaJet margin the a issuance. with did and that realize the effectively

control expenses I are I'll later focused third development to discussed. Wrapping recoup to of of The overall as to had prior XXXX our an and project the QX end at $XX.X my On investments. payment second we as September transferring impact. developing our XXXX by early in not in end million September, loss ACM, have adjusted call. We is or the year-over-year XXXX. to million our not were recognize attributable just $X in projects expenses August was X which is give our closed remarks did position compares expected investment cash related expect the up cash, quarter the the we $XX forecasted to operating material in in Post position higher EBITDA, XX, of cash flow At a Agreement year-over-year cash capital second infrastructure mostly we expenses as forecasted, EBITDA to ACM we flat This revenues and million the up quarter and to to and that place partners in adjusted XXXX, on made that the year-over-year XXXX Capital of reported in on revenues the on to XXXX a lower second even our to hand, controlling announced our OpEx costs. And $XX.X million position. cost cash lower-than-expected that adjusted Purchase the operating $XX.X Direct satisfy front, update that million. our quarter-over-quarter cash were reducing from on this our fully FPA decision loss the including on is by attributable fact we compared quarter that the million cash quarter third the involved to put have settlement X X for on year, million, these variance Forward next than in in to restricted at revenues with quarter year cost approximately The year, to cash benefits. essentially Carbon $XX.X main $XX.X third EBITDA compared and obligations was $XX with in we we them quarter million increase our third driven to of budget which XXXX. It and as quarter focus costs. stronger and point due achieve increase ended year-over-year The associated was quarter intent order below under parties is

we stock and event number future that First, open we in equity reduced ACM in position limited the of market. pressure shares. common was second, LanzaTech the downward on on the And their sell to our price outstanding issued

fourth to quarter like take outlook. I'd some Now and time our discuss

include As we year. final the fourth XXXX X possible this components. wide key for Jennifer of mentioned, a range have quarter drivers revenue of Potential for of outcomes quarter

our First, $XX current business for quarter. X base about quarters, generated past has the million per

positive FID. be FID Norway revenue hands approximately million Brookfield's and for $XX represents that estimate for upon project our to expect in we evaluation we soon Second, of us in

baselining finally, on is in revenue discussed tirelessly our of Norway and contracting incremental income rapidly signing we in finalize Project consideration quarter forecast share a our and number the of Drake sublicensing our of approximately potential flow Project additional fourth call. to agreement assuming SECURE, quarter. We another ballpark second award of is during XXXX for and of end Third, for before sublicensing process the for XXXX. earnings our in successful similar in the result working could quarter in revenue $X terms Fourth, during the addition LanzaJet cash year. And million recording we arrangement revenue in detail agreements for project a LanzaJet

the to the both expected I associated So as but into call won't of back to Jennifer? I'll revenue would in that, we remarks the several be Jennifer months next LanzaJet share for receive us in result call tranche and recognition also much some equity that turn potential go it and today, significant open second final the the closing with for for consideration. With before to the third Q&A.

Thank you, reiterating Geoff. points. I close key want few a by to

First, we're making our the happy the like with collaboration the projects Project to model evolve and progress Drake and develop business in in Eramet we're Norway EU.

projects has Sustainable SAF our ethanol. anticipated. with Wagner is there waste-based Air led with low-carbon Fuels and enthusiasm Alcohol-to-Jet-enabled announcements to strong more Second, and exciting for Zealand This New

growth Third, to for path let's product call we tandem in with order sales cash operations. With that, up and the remain control and our sharply disciplined our accelerate midterm positive on cost profitability in increased to open commercial focused from flow questions.

Leo We'll ROTH. our question first Instructions] take Mariani [Operator with from

components bit these confused a already. here. about I to you on some $X received a guess guys million ask Drake. that guess said revenue I you I'm little I wanted Project little of

as that else? expect fourth revenue of something that's additional is in then roughly hit So as Is be $XX accounted going you And that part for would to revenue that quarter? to that? that $X base or is be million of business million going it million $X the to included that

working is we've as been deposit for the with paying is a expect as a it fee do so first broader services about to We So a a done. on to associated work it, think -- in that or the million part it. development of payment address effectively The for Drake associated with an QX project it exclusivity while. we've Project $X a packages

little and we're $X not part that be do as to quoted, which assuming of it little kind part what business you revenue quarter-over-quarter -- expect doing been better we're to then been just trying to -- than bit agreements, recognized of able expect be to there finalize connotate -- the $XX that we that is that it's that's So what a of million the we million will doing. A has conservatively that, year-to-date. speaking,

would So incremental be $XX not to that's in it. that million, that

cost wanted And the over then here. just jump to to side

initiatives numbers You a R&D. have quarters about I I cash numbers have talked lot guess just guess the quite savings here. cash here, for And I cost X guess some up I I define those basically plus last gone your if cost the guys is time. at G&A look

numbers there's So guess, reported Have to roll out now as into a I'm you So you can do you to cost understand of they kind into you the And with they the sort were of than initiatives? yet I just hit help the savings how evolve bit going that. in me and and trying not maybe be little cost? next think or less year? growth, costs fourth quarter higher

we're Project Drake is, to FID, That ], Exelixis do and we feed we're you dollars are external projects to to now, we get work [ external also are if expensing all to is now. know, Because delivering FID contractors. of we're know, they you then transferred will. have package What because, all you sold, or doing cost the as doing as that -- and with also those happening includes Project

do to permitting, of have also environmental We all issues. for applications, these things

external an required FID. to is that is project of a and lot there awful get work to internal So

to add will both that? All of Geoff, And then we booked all in when those transferred, the position simply to expenses something want those a projects, Drake right do project Exelixis, recoup to be are and now. you costs. being Norwegian get the

the would it OpEx consistent had say OpEx. of component right of significant piece OpEx that but cost is specific some items. I quarter-over-quarter, has is that absolutely reductions driven that and on -- that that -- it fairly is with our of just is Jennifer overshadowing we've a Yes.

for our as of well to reduced line budget OpEx many reduced quarter-over-quarter year. the it items So relative we've as actually

at beginning of salaries we contract costs relative expense, to planned what driving reduced well. and like year costs we benefits on are So the things, we as down things other and of quarter-over-quarter the a variety

And just model here. to of bit tweak sort your a then on a the of business

about a more to Can you don't partners there? these. guess, bit I Lanza in provide these accelerate to it's into know. talked I small little be bringing but infrastructure projects? putting You equity color amount, projects, of new Is it's finance, maybe going Maybe a maybe X. some some

get Just on I sense a maybe multiple is wanted that. with this guess people of than And beyond Brookfield, to do infrastructure other you going other have discussions presumably, And Brookfield? partners?

right, absolutely That's Leo.

especially completed in That projects together in you'll are the and Arabia. is And quarters. about of now know, a completed. are JV As back a hear coming we that JV Olayan. with in were East, Olayan, a Saudi with now you ago, while will we is Kingdom Middle them the the in know, we working announced region. as more developing you doing That JV lot we that

to to addition, In that key Europe, investor. And U.S., an partners Brookfield is is infrastructure projects -- to regional, the infrastructure SAF building multiple multiple or project them, for folks whether committed ethanol have to are relationship they talking that we And -- be FID. once relationship type us in Brookfield a we are happens, partners. to with have is our we other project getting The infrastructure projects. actually -- because that U.K. there we're is that Drake transferring fact looking are the of

about the building that One SAF our but the via point ability to of do ethanol feedstock globally. you excited are go there's Does the way that? the more technology. on partners waste integration need a your through We Or LanzaTech interest of all is LanzaJet, infrastructure than importance that of partners address of projects all clear. via the that. feedstock call lot lots in resources about It's CirculAir, infrastructure And the and starting with is from the the question? from made things that SAF

was That helpful.

from Partners. next Campbell with Research Our Seaport question comes Jeffrey

the plan use as the changed up business maybe to pick future lens of here for I'd sort we'll of and like discussion a efforts. Norway

the I capital project. contributing if the this correctly, not First, understand is emitter to

suggest the waste third, emitters the flow parties? project? targeted what second, is And going provide then financiers this carbon, the it but a be cash template partnership receiving? Then say, LanzaTech? project benefit So will specific a and the be revert retains agree other Or financed does where up most flows where retain is is type to to something then going to, this long-term by of partner interest to cash to the a the return a flip structure similar in more to will

start product, we by control taking can is the model also, or or get, them the the upside part from to business also retaining the from project, part in shift of which the saying developing but the me ethanol of just that XX% it normally will the Let SAF that right? So an this. of the more so Norwegian the offtake we get you selling not is projects are by FID, the that's see and anything can revenues important producer else, that getting a is as

we still revenues, engineering and FID this will to would project We and is is Brookfield the addition we arrangement point there receiving we -- services revenue. not get for can it the in But to a path a who work we there get specific them. it. that, but be we is to with. is to expand upside control to where our In to we the the in to able the have share the we it equipment, generally, those and it's what be also Brookfield, potentially the just do receive us return lines, beyond also normal so If is need agreement time our path to revenues the will to with licensing, a

SAF. been make oil, who into build to want right? plant, have emitters to gasoline. need ethanol working They with ethanol They We need to to blend a date Indian

outside they tend carbon even them And They the to us just this. role for them with had of the though that lot I ArcelorMittal, we who folks note of these work would the want work want where intensity, don't revenues. And site partners been traditionally, thing plant. It is But fermentation important gas to say last have kinds but to put about pay are pipeline not infrastructure to because wouldn't core have emitters would one in with will there a big we These a commercially established operating infrastructure reduce of fund partners and so folks, their own now fact so cookie-cutter refinery relationships a play. their kind. right? They're depend We've the the much that plants. we not that these have to are on to business. And with a X that of takes projects, these enable first it our is at because other have credibility. that

that's much we from that you them. are emitter, infrastructure. have asked initially, so the to course, as fact the so reducing is that something the their interest of is And which emissions, to benefit they why is critically And important

agree. And I

able is more ethanol I I curious the had third widen ask exposure particularly, think during pool critical. you pricing projects the I guess, into to, weak money really of as into for the ArcelorMittal ethanol being motivated go CarbonSmart the that quarter? to can business, know was noted, what to hurt

ethanol from quarter of this for XX,XXX announced years. X,XXX accessing X what the the is tons that Well, year and Arcelor tons then we -- are next actually we've first

the make a the to upside is intended wavered bring to power. their of it ethanol last make They've on that thing interest their say always we versus carbon to from portion to carbon and than create never they've could chemicals they've fuels we So their themselves. therefore, license. But use sell standard and a I the use take value would more agreed just

just I think carbon future. on wasting not there's is that production power the view a

making like ethanol beyond. idea leaned And so of product into they've a the and

And wish success in ask a existing a effort should different be necessary subject. green production? convert represent a Will Is incipient one appropriate? capital likely hydrogen source Lanza Nutritional and for to question let Protein ingredient whatever hydrogen protein facility obtaining me to on this the is LanzaTech expense to an of

carbon and make actually that reduce you more you production the if the great when about protein, intensity all, thing of use is that so energy-intensive, COX Obviously, you water-intensive So the to of even gray on blue you first green. so product. of use protein it to hydrogen is protein nutritional the reduce use protein

to on are we impact can green. to transition have can we green we So hydrogen. in And gray fact, dependent an not from blue --

well have population, carbon for are food you growing just And Protein to allows and not just security there do LanzaTech issues both, You availability low Nutritional a food food. remember that as to one. not

reaction amount Now COX require The will and a be expense? as would of there well capital as small oxygen. hydrogen a

available, would would some build convert would wanted if systems add out to that the be hydrogen be really, then scratch. you is could to you minimal different. if a But So to And plant, hydrogen. expense starting you to safety need add compared from

comes Janney next Thomas with question Montgomery. Our from Meric

think bucket thinking of that of of transfer few to then as model that first future ones? on transferred free want you forward for learned free into it And or partners, what million is we are the that Norwegian second a project the from to projects? things multiple that conversion number? up kind do the kind future some related what Just cash $XX finally, cash the just then side is correct follow otherwise, to a conversion have out wanted over quarterly then about infrastructure you that, that And to a flow of of how of flow we will of do Brookfield to Is project. of that about revenue? And carry the quarters? those projects the be Or part spread

all and I'll and try A couple so them. of different questions in of there unpack

first, fourth terms talking the about dollar that in we're relative amounts the quarter. to So of here just

As Jennifer of the quarter. expect aspect of recouping we've costs we previously that recognize to a cost a in incurred catch-up that aspect mentioned, of there's

provide play as We'll the additional but kind continue projects more future are to start-up want don't some So actually tail in cases, We'll support. kind well I services. We'll onetime long -- with catching a up as majority of onetime, expectation it providing the we to call those development provide associated it's to, to kind services. is role engineering retrospective revenue the those of continue expense. There in projects. continue those of on be

be kind our operate it these or will they if partners, economics with will cases Brookfield, takes traditional other to customer licensor the going of it's one the -- infrastructure All translate of build in service. doing a as of our projects. The and will of to as be we're a those customer effectively projects and over kind associated of owner one the

associated does create $XX So the it this revenue of indicative us, this stream the catch-up but tail incurred to with long million costs is of the we point.

-- going to was quick just no, add me I Let thing. one

we're why project one with. and replicability to choosing about begin asked You

partners in the one learn Brookfield, -- this Fluor in but trying platform is replicated to cases, replicable, to that the a transfer develop to across transfer world, a and to be how also that with design can to in world. Technip As EPC case, is we're project, other a

cost amount a there for shift we the of until cost it of lower. get the strategy. there bear time the lift getting transfer the to this are since call us and So takes and We

with SAF Brookfield, the just an This developed Dragon. first we hope locations else. Fluor facility we somewhere and an that. Drake is multiple the facility across is And partnership so Eramet, identified we this is in a ethanol we of that that could exact move that XX pipeline LanzaJet. to world Project replicate example something literally represents project absolutely Project same -- project And per gallon to intend million with and it Project Drake year with also with we where to for the that created is copy have duplicate of and

are very can a we're that be So duplicated. that excited platform we creating

business prepared pre-FID We've this our be developing lot just learned? these at stages. to we've a learned of associated what remarks that of And reason the part of what it's something with evolution specific each about been to them us ability to component these and an is partners very led the we're this. of develop projects, these that our the throughout has projects capital also stages develop that so projects well-aligned earliest model, stage continue to with important partnering with pre-FID that about these we of it's and commented at the we projects conclusion And of in part this have

next Gabelman Jason We with will Cowen. with TD move

I buildup XQ. the revenue to for on wanted ask

in the get these just our on that that properly to earn the Given the we 'XX, quarter-to-quarter XQ, kind and you to revenues you expectations if for these expect so are around, XQ in move on don't things of revenues? the potential lumpiness calibrate delivery of revenues

but of question That's right. question It's a of a if, not when.

so yes all do long of takes a transfers really the forward. some a how to this is And or rather it no going about decision and is complete on what agreements than

potentially time just to understand million more steady we that confidence And that over the forward? company so $XX represent? of what does have trying state could how I'm moving business, kind exactly the then earn grow what base in can

kind the I through if work you additional think look been the what convert JDA expect we kind and X services, we're and the engineering research, the then of we're is at prior pipeline. adding we've trying to to doing of quarter-over-quarter, contract there as quarters the that continue things revenue connotate and

additional we move stages, stages to create will a had into out we've bring that and engineering those expect we So projects additional to advanced continue kind the on. working stage. We've we which construction project that revenues talked we projects into to same got kind about of of of continue the been through move while post-FID

of think telling expect we've the that later is been it's it is and and stages do about our articulate converting telling it been pipeline this something we've having those year. about really projects pipeline. We're like those moved projects you that beyond projects, a same now that's various to the previously, couple which trying taking We that of to advanced excited we story the through building engineering. the So market

And with of is are in those. expect additional those so pleased of that we happening, revenue more that XXXX kind creating associated and we but

agreement. final my the on question And is ethanol offtake

So So based from $X prices what are? Is move million tied directly to just is the number, to million the range? And that volumes? million going around on then trying is the $X ethanol that $XX is million $X the million to where to understand driving offtake prices? the that exactly change to $XX wider just ethanol

right. That's

both have but tons it's the can is do what also on only X numbers X,XXX difference first XX,XXX per acquired we year, we this. first first tons how are our that CarbonSmart is continue intend And which for ethanol the that's business year X to of on per the the the case, that value got numbers to after approximate get we between So is, in we what And and that numbers, numbers. using ethanol. is and those years the for for year. rest based We year trading production

trying we our spot into ethanol And using offtake put get asking and that them then a long-term CarbonSmart be turn, we're over that think that to timing certainty doing users. now And commitments we're products. commitments been product for is what almost China have facilities We in they'll will able that to for production offtake I CarbonSmart our access from from flip as well. give our to for

So product for it the to transferring creating also I our is, customers upside. to more certainty a us more creating and licensing you of that model lot product us and then really leave you've like IP that is getting table to mean based the other the our and we've while the is more for would -- else generated. in all participate the capital, putting value generated. on that money we And business because that's good on somebody --

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of comes Byrne Bank America. question next with Steve from Our

into you ask, is That's nutritional a I'd amino more your amino in really like acids. this little a protein? a able to in affect bit product. series certain some one. actually cases, is are to what a In composition amino could Or it Is the acids? I acids drill animal of protein feed have And benefit it for produced? of

nitrogen? had intensity last of carbon is atmospheric intensity footprint into animal for the the feed Have comment done you protein? is about are or very then And carbon -- opposed Do the on life fix it provocative. either carbon the nitrogen this source your The of product process? of analysis this other and nitrogen the what's one, on of Jennifer, feed these to animal any this cycle able as organic these bacteria question I to animal

one last work So let me first address then and the backwards.

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some to ethylene also you Interesting. that little wanted one the XXX crackers Project identifying chickens. I interest can't to the ask from are of imagine you've a But What's what COX of from you a U.S. include of million how just polyethylene to emissions are about level bit their received producers close in SECURE. this coast site? the And along project?

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part genetically that's ethanol have a not with very a add ability And modified to I to we been is have our globally talk isopropanol. enough, we important now I one our future but because announce co-produces isopropanol, and that about plan. extend of it replicate you think want that IKEA So saw producing project us ethanol thing we and just don't and bacteria that

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little today, know made and are today. fossil as polypropylene carbon very far I propylene non-XXX% As

is So this game-changing.

with Pavel question Molchanov Raymond comes next from Our James.

have since the Freedom been If we go January. the opening to there on plant any the SAF actually website in Pines, updates of not grand

see can that the us if guys So facility. thought would I you give I on latest

noted update we the need that all, of website. First to

feed We right system into and haven't, started SAF in not fact, the are we now. producing

to FID. started be But now when do. first we You'll the know have we right

we're early So shakedowns. the past

Let me as zoom out well.

days and Washington. Section X part we're climate lot the the conversation from that XXQ as tax of broader questions election Given in example, a out credits about, for of

that year? we are for what expect can be thoughts business directly Just your generally, next your what would relevant on

pundit and that but it am a the in business. could question great will to or I That's broader your pretend I question I view, that wouldn't from or a address address a politician our somebody dare Yes.

great First because behind election uncertainty. that of removes it's is it us all, the

what not the we be One of you impacted waiting moving people's doing problems also the the it just is to election different say right? forward, have how results biggest has U.S. is and of just see what projects in projects remember could and opinion Everybody that we've would had that happens. I the to that are

company We Europe, are East. in a Middle global India, in with projects

fact geographically what do. just And motivations And countries is have is they for not business so our the impacted U.S. diverse different by elections. that the different

to Middle that with on CirculAir of try to the alternate they're the Olayan. know You Kingdom in Saudi economy working why East, the that's in business an grow Arabia, and focused we're

food. all focused why about they're EU Norway the in it's abatement. Europe, projects getting and have U.K. on in we and that the know away from carbon You That's and

industries so fact everything. of important We New where and because Zealand, SaaS have to the away that Australia so projects far are critically from in markets their they is

continue back people And there need need fuels. an to to fuel you carbon them to to so with a specifically get eco-tourism need low out get grow grow. and And there intensity Zealand, country, to to continue with as They're You in their intensity products low carbon license they New carbon of business. tourism low right?

So the the really, project may IRA U.S., actually the reason not bipartisan. carbon bill. it's does jobs a is reality the It's is And bill. what the is climate impact a administration but or bipartisan a

technologies, move is that what private which job-creating we So public, support for past strong frankly I can is are. on and us think election is the the fact we

forward. we in my can So good that it's and we I mind move think are progress it's where

And I this to does conclude Holmgren the remarks. our will call turn session. Q&A back Jennifer closing for

Thank you, joining us. for everybody,

looking when continue operating headwinds. to scale solid right a forward and are with on are easy unique earned to facing see, and These have progress there commercial everybody the we to we all develop get important can even where and a this to It's of you X building making LanzaTech you and projects, an We'll our with like we confidence your line. on and our during support. steady growing As this projects, to strategy that progress industry help build who's executing thank getting are beyond not the our for strong for access offtake. is things commercial in XXXX our really us is facilities foundation. We've we're number in journey. of times in make we already revenue profitability. We're position the

you for all you presentation. participation your Thank Thank and this you. any And at conclude disconnect does may time. today's