LanzaTech, a Nasdaq-listed next-generation carbon transformation company, has secured USD 40 million investment in the form of a convertible note from new investor Carbon Direct Capital, a global investor in the carbon management ecosystem. This brings the company's total funding to USD 1.1 billion.

The proceeds raised will be used to fund growth and working capital. LanzaTech continues to seek additional financing from certain accredited investors under the Convertible Note Purchase Agreement, which provides for one or more closings for up to USD 150 million of convertible notes.

In addition, during the second quarter, the company increased its ownership in LanzaJet from ~23% to approximately 37% as further consideration for the license to the Alcohol-to-Jet (ATJ) technology exclusively licensed to LanzaTech.

Analyst QuickTake: This round of funding comes on the heels of a contract awarded to LanzaTech by Jakson Green earlier this month to supply its 4G ethanol technology to NTPC Limited, India's largest power generation utility company. The project included the construction of India's first plant to utilize LanzaTech's second-generation bioreactor to convert CO2 emissions and green H2 into ethanol.