LanzaTech Global, Inc. (NASDAQ:LNZA) shares are trading higher on Wednesday after the company received a $3 million award from the U.S. Department of Energy’s Office of Fossil Energy and Carbon Management (FECM).

This funding is part of a broader $29 million investment program aimed at advancing carbon management priorities.

LanzaTech’s Project ADAPT (Accelerating Decarbonization via Advanced Production Technologies) was chosen to align with FECM’s goal of converting carbon dioxide (CO2) into environmentally responsible and economically valuable products.

Project ADAPT leverages the company’s existing expertise in using CO2 as a feedstock to produce isopropanol at a pilot scale, with the goal of advancing the process and platform further.

Notably, Project ADAPT will be mainly funded by the $3 million investment from FECM, complemented by approximately $0.8 million from LanzaTech. This brings the total estimated project cost to $3.8 million.

Most of the revenue is anticipated to be realized and positively impact financial results in 2025 and 2026.

The projects funded by FECM align with the Biden-Harris Administration’s goals of achieving a carbon-neutral power sector by 2035 and reaching net-zero greenhouse gas emissions by 2050.

Jennifer Holmgren, CEO of LanzaTech said, “CO2 is an essential feedstock of today and the future, and Project ADAPT leverages our expertise and existing operations to accelerate the commercialization of transformational carbon capture and utilization technologies that deliver cleaner and more sustainable energy and products.”

The company will report third-quarter 2024 financial results on November 8, 2024.

Price Action: LNZA shares are up 18.4% at $1.995 at the last check Wednesday.

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