LanzaTech, a Nasdaq-listed next-generation carbon transformation company, and LanzaJet, a LanzaTech spin-off that produces sustainable aviation fuel (SAF) using low-carbon ethanol, have been chosen by Air New Zealand and the New Zealand Ministry for Business, Innovation, and Employment (MBIE) to support a study examining the commercial viability and sustainability of domestically producing SAF in New Zealand.

The study is set to examine the use of domestic waste products in New Zealand to produce SAF, with a primary focus on forestry residue. It is expected that LanzaTech will use its gas fermentation technology to transform the waste raw materials into low-carbon ethanol, while LanzaJet will convert the ethanol into SAF using its Alcohol-to-Jet technology.

Furthermore, LanzaTech will be conducting a supply chain risk assessment and evaluating the potential for using domestic waste to produce ethanol through gasification. Additionally, Z Energy, a wholly owned subsidiary of Ampol Group, will be evaluating the end-to-end supply chain, including feedstock options and the economic impact on the regions.

The study—which is set to be completed by mid-2024—will support Air New Zealand’s plans to decarbonize and achieve net zero emissions by 2050. Following the completion of the study, a decision will be taken on whether to commence the next stages, which include further development and engineering work.

Analyst QuickTake: LanzaTech and LanzaJet have taken significant efforts to increase the production of SAF globally. In February 2023 , LanzaTech partnered with Tadweer, a waste management company in Abu Dhabi, to explore the possibility of developing a large-scale conversion plant for transforming solid municipal waste into SAF. Prior to this, in December 2022 , LanzaJet began site installation at its Freedom Pines Fuels production facility. The facility is the world’s first ethanol-based alcohol-to-jet SAF production plant and is set to be completed and begin operations in 2023. It will be capable of producing 10 million gallons of SAF and renewable diesel per year and will double the current production of SAF in the US.