LanzaJet, a leading next-generation fuels technology company, and ATOBA Energy, a pioneer in SAF aggregation, have signed a Memorandum of Understanding (MoU) on June 3. This collaboration aims to develop innovative commercial models that address the intricate financial challenges currently hindering broader SAF adoption.

The agreement signifies a shared commitment to enabling greater access to SAF by establishing new pricing and offtake structures. These structures are designed to balance the needs of both SAF producers and buyers, ensuring that the unique value proposition of LanzaJet’s Alcohol-to-Jet (ATJ) fuel pathway is fully recognized and supported at scale.

"Scaling SAF requires flexible, forward-thinking commercial models that work for both producers and consumers," stated Jimmy Samartzis, Chief Executive Officer of LanzaJet. He emphasized the strategic importance of this partnership, noting, "This collaboration with ATOBA Energy is about building the kind of aligned ecosystem we need to drive innovation, catalyze investment, and accelerate SAF deployment globally. It's another step forward in ensuring that the value of next-generation technologies like ours can be realized at scale because the future growth and sustainability of aviation depends on it."

ATOBA Energy plays a crucial role in bridging the financial gap between SAF producers and consumers through its unique upstream and downstream SAF offtake portfolio management. By aggregating demand and supply from diversified producers utilizing various technologies – including HEFA (Hydroprocessed Esters and Fatty Acids), Alcohol to Jet, Gas-Fischer Tropsch, or Power to Liquids – ATOBA effectively mitigates technological and pricing risks.

Arnaud Namer, co-founder and CEO of ATOBA Energy, expressed enthusiasm for the partnership, highlighting LanzaJet’s pivotal role. "We are delighted to develop long-term offtake agreement models with LanzaJet, a company that is leading the alcohol-to-jet (ATJ) pathway," Namer said. "ATJ plays a key technological role in scaling the SAF industry as it contributes to using the best production route and feedstock depending on the specific regional characteristics. Developing LanzaJet in our portfolio of SAF producers is an essential brick in our aggregation strategy, reinforcing our ability to provide diversified, reliable, and scalable SAF solutions to the market."

Both companies acknowledge the pressing need to decarbonize aviation and recognize that this requires the establishment of commercial frameworks that support not only scale but also diversification and long-term market viability. Through their combined efforts, LanzaJet and ATOBA Energy aim to contribute significantly to the development of a more stable, transparent, and innovation-supportive SAF market, ultimately paving the way for a more sustainable future for the aviation industry worldwide.