LanzaTech Inc (NSQ: AMCI) is a biotech start-up founded in New Zealand, which focuses on converting carbon emissions to useful products, including fuel. Their subsidiary LanzaJet is able to take industrial emissions and feed them bacteria to create ethanol fuels, which are then passed through efficient technology to produce up to 90% of the input into Sustainable Aviation Fuel (SAF) - as well as turning nearly all the carbon derived from the ethanol into hydrocarbon products. Current investors in the subsidiary include British Airways.
On 08 March 2022, LanzaTech announced that it's going public in a merger with a special purpose acquisition company (SPAC) firm AMCI Acquisition Corp.
The board of directors at AMCI and LanzaTech approved the proposed transaction, which they expect to be completed in the third quarter of 2022 - subject to the approval of their private shareholders and customary closing conditions.
Since the proposed listing is through a SPAC, the price remains fixed roughly around the $10 mark and will then remove the price fix once LanzaTech becomes officially listed.
Proceeds from the transaction will help to fund acceleration in LanzaTech's commercial growth, development projects, and continuous technological innovations.
This would make LanzaTech the first Carbon Capture and Transformation (CCT) company to access the public capital markets. Their scalable technology is designed to enable participants in many industries to reduce their carbon footprint - and help to accelerate a circular economy.
The products don't just stop at renewable energy - they've also partnered with CleanCloud to use LanzaTech's technology to turn CO2 into cushioning material for running shoes.
SPAC listings have been an interesting strategy for various investors - however, it requires patience given the length of time the price remains flat and also whether the investor believes it will gain public shareholder optimism during early listed trading.
An example renewable company that completed its SPAC acquisition is ESS Tech Inc (NYSE: GWH) in October 2021. The company are creating iron flow battery technology as a commercial-ready solution for long-duration energy storage.
Following the news of its listing, the first few days saw ESS Tech nearly triple in valuation from roughly $10 a share during its pre-acquisition stage to an intraday high of $28.92.
It also took them to the very top of the US market gainers for the trading day (not counting shares valued below $2 or below minimum volume).
However, it should also be noted that investors were quick to take their profits following the surge - with both slow financial growth (e.g. still to post a quarterly profit) - as well as economic and geopolitical uncertainty taking the shares to below $4 in early August 2022.