Shareholder Letter: September 2024

I wanted to connect to give an update on a couple of recent announcements that are great examples of how we are paving the way for a prosperous long-term future for LanzaTech.

First, I'll start with the exciting announcement we made today regarding the expansion of our biorefining capabilities to include the commercial-scale production of nutritional protein directly from CO₂. As many of you know, we have long been producing protein as a co-product of our biorefining platform that generates ethanol as the primary product. By introducing a new microbe into our gas fermentation process, we are able to use the same biorefining infrastructure and carbon-rich feedstocks to mass produce a nutrient-dense protein that uses a fraction of the land and water used by traditional plant and animal-based proteins. Additionally, our protein, which we are calling LanzaTech Nutritional Protein ("LNP"), can be produced anywhere in the world, regardless of climate or weather extremes. LNP represents a cost-competitive solution to address food security issues that are prevalent today and will be exacerbated in years to come with the world's growing population. Given the high protein content of LNP, 0.5 tons per day of LNP is roughly the equivalent of giving a typical complete daily intake of protein to approximately 9,000 people.

The alternative protein market is valued at $1 trillion and growing. To access this market, we are evaluating potential plant sites in collaboration with several partners. Currently, our expectation is to have our first pre-commercial plant operational during 2026, with an approximate capacity of producing between 0.5 to 1.5 tons of LNP per day. From there, we want to develop commercial-scale facilities with a production capacity of greater than 80 tons per day, with a view to having the first of this scale in service during 2028.

We are also partnering with the U.S. Navy Research Lab on a joint research and contract development project to evaluate the viability of creating nutritional proteins on military platforms. Specifically, we are exploring the biomanufacturing potential of nutritional protein made from CO₂ extracted from seawater, which could enhance the resilience of military operations in our ever-changing geopolitical landscape.

Second, I wanted to share an update from early September, when we announced a master license agreement with our longstanding partner SEKISUI to deploy a jointly developed platform that converts syngas derived from municipal solid waste ("MSW") to ethanol. We have spent the last decade collaborating with SEKISUI, first on a pilot project then a demonstration scale plant, and now a plan for multiple larger facilities to be installed in municipalities across Japan. This contract represents the framework for providing municipalities with a platform that reduces waste, captures carbon, generates valuable sustainable feedstocks, and importantly, creates local jobs. We believe this arrangement is at the forefront of developing a global blueprint for other countries and businesses to follow on how to access and utilize the carbon locked in local garbage, or as I'm fond of saying, turning trash into treasure.

Best regards,

Jennifer