LanzaTech New Zealand, the New Zealand-founded carbon recycling company, reported a slightly narrower annual loss and while the directors signalled a number of risks they concluded it has sufficient funds to continue operating for the foreseeable future.
The US-based company reported a net loss of US$37.4 million in calendar 2016 versus a loss of $38.3 in the prior year, according to its annual report. Revenues were $4.1m versus $3.95m in the prior year and were generated by $2.4m in government grants and $1.7m from commercial contracts. Its accumulated losses now stand at $204.2m.
LanzaTech turns waste gas from steels mills into ethanol and other high-value fuels and chemicals using microbes through a gas fermentation process. It was founded in New Zealand more than a decade ago and while headquarters have shifted to Illinois and it reports in US dollars, the parent company remains New Zealand-registered.
It is currently in the research and development phase of taking its technology, products and services to the global commercial marketplace and "as a consequence has a higher degree of business and continuity risk than other more established businesses," the directors said.
Regarding specific risks, the directors noted "if petroleum prices were to deteriorate significantly, projects at the planning stage may be re-assessed due to the less attractive returns."