Jeffrey Canto's questions to LanzaTech Global (LNZA) leadership • Q4 2023
Question
The analyst asked to reconcile the significant Q4 '23 CarbonSmart revenue shortfall with its modest 2024 growth outlook, the potential impact of regulations on pricing and demand, the outlook for U.S. projects, and the drivers behind project delays (economics vs. ESG fatigue).
Answer
The CEO explained the conservative 2024 CarbonSmart forecast is due to regulatory uncertainty, the same factor that caused the Q4 miss. Favorable regulations are expected to boost both demand and pricing. The U.S. project pipeline is growing, driven by the IRA, with announcements expected soon. Project delays are attributed to a combination of economic factors like steel costs and a broader 'ESG fatigue', which the company is actively working to mitigate.