british airways
Auto Added by WPeMatico
Shell invests in LanzaJet to speed up deliveries of its synthetic aviation fuel
The energy giant Shell has joined a slew of strategic investors — including All Nippon Airways, Suncor Energy, Mitsui and British Airways — in funding LanzaJet, the company commercializing a process to convert alcohol into jet fuel.
A spin-off from LanzaTech, one of the last surviving climate tech startups from the first cleantech boom that’s still privately held, LanzaJet is taking a phased investment approach with its corporate backers, enabling them to invest additional capital as the company scales to larger production facilities.
Terms of the initial investment, or LanzaJet’s valuation after the commitment, were not disclosed.
LanzaJet claims that it can help the aviation industry reach net-zero emissions, something that would go a long way toward helping the world meet the emissions reductions targets set in the Paris Agreement.
“LanzaJet’s technology opens up a new and exciting pathway to produce SAF using an AtJ process and will help address the aviation sector’s urgent need for SAF. It demonstrates that the industry can move faster and deliver more when we all work together,” said Anna Mascolo, president, Shell Aviation, in a statement. “Provided industry, government and society collaborate on appropriate policy mechanisms and regulations to drive both supply and demand, aviation can achieve net-zero carbon emissions. The strategic fit with LanzaJet is exciting.”
LanzaJet is currently building an alcohol-to-jet fuel facility in Soperton, Georgia. Upon completion it would be the first commercial-scale plant for sustainable synthetic jet fuel, with a capacity of 10 million gallons per year.
The fuel is made by using ethanol inputs — something that Shell is very familiar with. It’s also something that the oil giant has in ready supply. Through the Raízen joint venture in Brazil, Shell has been producing bio-ethanol for more than 10 years.
The company expects that its sustainable fuel will be mixed with conventional fossil jet fuel to power airplanes in a lower carbon intensity way. Roughly 90% of the company’s production output will be aviation fuel, while the remaining 10% will be renewable diesel, the company said.
LanzaJet’s SAF is approved to be blended up to 50% with fossil jet fuel, the maximum allowed by ASTM, and is a drop-in fuel that requires no modifications to engines, aircraft and infrastructure. Additionally, LanzaJet’s SAF delivers more than a 70% reduction in greenhouse gas emissions on a lifecycle basis, compared to conventional fossil jet fuel. The versatility in ethanol, and a focus on low carbon, waste-based and nonfood/nonfeed sources, along with ethanol’s global availability, make LanzaJet’s technology a relevant and enduring solution for SAF.
Powered by WPeMatico
LanzaJet inks deal with British Airways for 7,500 tons of low-emission fuel additive per year
LanzaJet, the renewable jet fuel startup spun out from the longtime renewable and synthetic fuel manufacturer LanzaTech, has inked a supply agreement with British Airways to supply the company with at least 7,500 tons of fuel additive per year.
The deal marks the second agreement between the U.K.-based airline and a renewable jet fuels manufacturer following an August 2019 agreement with the British company Velocys. It’s also LanzaJet’s second offtake agreement. The company announced itself with a partnership between the renewable fuels manufacturer and the Japanese airline ANA.
Through the deal, British Airways will invest an undisclosed amount in LanzaJet’s first commercial scale facility in Georgia. The fuel will begin powering flights by the end of 2022, the companies said.
It’s part of a broader expansion effort that could see LanzaJet establish a commercial facility for the U.K. airline in its home country in the coming years.
Back in the U.S. the plan is to begin construction on the Georgia facility later this year, which will convert ethanol into a jet fuel additive using a chemical process.
Fuel from the plant will reduce the overall greenhouse emissions by 70% versus traditional jet fuel. It’s the equivalent of taking almost 27,000 gasoline or diesel-powered cars off the road each year, according to the company.
The deal is the culmination of years of research and development work between LanzaJet’s parent company, LanzaTech, and Department of Energy’s Pacific Northwest National Laboratory.
Spun off in June 2020, LanzaJet was financed by an investment group including parent company LanzaTech, Mitsui, and Suncor Energy. British Airways now joins the two other strategic investors as LanzaJet eyes an ambitious scale-up program through 2025. The company plans to launch four large-scale plants producing a pipeline of renewable fuels.
“Low-cost, sustainable fuel options are critical for the future of the aviation sector and the LanzaJet process offers the most flexible feedstock solution at scale, recycling wastes and residues into SAF that allows us to keep fossil jet fuel in the ground. British Airways has long been a champion of waste to fuels pathways especially with the UK Government,” said Jimmy Samartzis, the chief executive of LanzaJet. “With the right support for waste-based fuels, the UK would be an ideal location for commercial scale LanzaJet plants. We look forward to continuing the dialogue with BA and the UK Government in making this a reality, and to continuing our support of bringing the Prime Minister’s Jet Zero vision to life.”
The LanzaJet fuel is certified for commercial flight up to 50% blend with conventional kerosene. “Considering the aviation market is 90 billion gallons of jet fuel a year, having 50% or 45 billion of production capacity and reaching that max blend level will be a great problem to have,” said LanzaTech chief executive Jennifer Holmgren in an email.
LanzaJet’s manufacturing facility in Georgia is designed to produce zero-waste fuels, according to Holmgren, and British Airways will receive 7,500 tons of sustainable aviation fuel from LanzaJet’s biorefinery each year for the next five years.
The partnership is between British Airways, Hangar 51 (International Airlines Group’s accelerator) and others.
In addition to its biofuel work, British Airways is also working with companies like ZeroAvia, the hydrogen fuels company that also received backing from Amazon, Shell and Breakthrough Energy Ventures.
“For the last 100 years we have connected Britain with the world and the world with Britain, and to ensure our success for the next 100, we must do this sustainably,” said British Airways chief executive Sean Doyle.
“Progressing the development and commercial deployment of sustainable aviation fuel is crucial to decarbonising the aviation industry and this partnership with LanzaJet shows the progress British Airways is making as we continue on our journey to net zero.”
Powered by WPeMatico
How a Swedish saxophonist built Kobalt, the world’s next music unicorn
You may not have heard of Kobalt before, but you probably engage with the music it oversees every day, if not almost every hour. Combining a technology platform to better track ownership rights and royalties of songs with a new approach to representing musicians in their careers, Kobalt has risen from the ashes of the 2000 dot-com bubble to become a major player in the streaming music era. It is the leading alternative to incumbent music publishers (who represent songwriters) and is building a new model record label for the growing “middle class’ of musicians around the world who are stars within niche audiences.
Having predicted music’s digital upheaval early, Kobalt has taken off as streaming music has gone mainstream across the US, Europe, and East Asia. In the final quarter of last year, it represented the artists behind 38 of the top 100 songs on U.S. radio.
Along the way, it has secured more than $200 million in venture funding from investors like GV, Balderton, and Michael Dell, and its valuation was last pegged at $800 million. It confirmed in April that it is raising another $100 million to boot. Kobalt Music Group now employs over 700 people in 14 offices, and GV partner Avid Larizadeh Duggan even left her firm to become Kobalt’s COO.
How did a Swedish saxophonist from the 1980s transform into a leading entrepreneur in music’s digital transformation? Why are top technology VCs pouring money into a company that represents a roster of musicians? And how has the rise of music streaming created an opening for Kobalt to architect a new approach to the way the industry works?
Gaining an understanding of Kobalt and its future prospects is a vehicle for understanding the massive change underway across the global music industry right now and the opportunities that is and isn’t creating for entrepreneurs.
This article is Part 1 of the Kobalt EC-1, focused on the company’s origin story and growth. Part 2 will look at the company’s journey to create a new model for representing songwriters and tracking their ownership interests through the complex world of music royalties. Part 3 will look at Kobalt’s thesis about the rise of a massive new middle class of popular musicians and the record label alternative it is scaling to serve them.
Table of Contents
- Early lessons on the tough road of entrepreneurship
- From band leader to music label founder
- Leaving music behind… but not for long
- So what exactly is Kobalt?
- The wind (finally) in Kobalt’s sails: music is booming again
- What Kobalt is today
- How I’ll assess Kobalt over the next two posts
Early lessons on the tough road of entrepreneurship
Image via Kobalt Music
It’s tough to imagine a worse year to launch a music company than 2000. Willard Ahdritz, a Swede living in London, left his corporate consulting job and sold his home for £200,000 to fully commit to his idea of a startup collecting royalties for musicians. In hindsight, his timing was less than impeccable: he launched Kobalt just as Napster and music piracy exploded onto the mainstream and mere months before the dot-com crash would wipe out much of the technology industry.
The situation was dire, and even his main seed investor told him he was doomed once the market crashed. “Eating an egg and ham sandwich…have you heard this saying? The chicken is contributing but the pig is committed,” Ahdritz said when we first spoke this past April (he has an endless supply of sayings). “I believe in that — to lose is not an option.”
Entrepreneurial hardship though is something that Ahdritz had early experience with. Born in Örebro, a city of 100,000 people in the middle of Sweden, Ahdritz spent a lot of time as a kid playing in the woods, which also holding dual interests in music and engineering. The intersection of those two converged in the synthesizer revolution of early electronic music, and he was fascinated by bands like Kraftwerk.
Powered by WPeMatico
OneTrust raises $200M at a $1.3B valuation to help organizations navigate online privacy rules
GDPR, and the newer California Consumer Privacy Act, have given a legal bite to ongoing developments in online privacy and data protection: it’s always good practice for companies with an online presence to take measures to safeguard people’s data, but now failing to do so can land them in some serious hot water.
Now — to underscore the urgency and demand in the market — one of the bigger companies helping organizations navigate those rules is announcing a huge round of funding. OneTrust, which builds tools to help companies navigate data protection and privacy policies both internally and with its customers, has raised $200 million in a Series A led by Insight that values the company at $1.3 billion.
It’s an outsized round for a Series A, being made at an equally outsized valuation — especially considering that the company is only three years old — but that’s because of the wide-ranging nature of the issue, according to CEO Kabir Barday, and OneTrust’s early moves and subsequent pole position in tackling it.
“We’re talking about an operational overhaul in a company’s practices,” Barday said in an interview. “That requires the right technology and reach to be able to deliver that at a low cost.” Notably, he said that OneTrust wasn’t actually in search of funding — it’s already generating revenue and could have grown off its own balance sheet — although he noted that having the capitalization and backing sends a signal to the market and in particular to larger organizations of its stability and staying power.
Currently, OneTrust has around 3,000 customers across 100 countries (and 1,000 employees), and the plan will be to continue to expand its reach geographically and to more businesses. Funding will also go toward the company’s technology: it already has 50 patents filed and another 50 applications in progress, securing its own IP in the area of privacy protection.
OneTrust offers technology and services covering three different aspects of data protection and privacy management.
Its Privacy Management Software helps an organization manage how it collects data, and it generates compliance reports in line with how a site is working relative to different jurisdictions. Then there is the famous (or infamous) service that lets internet users set their preferences for how they want their data to be handled on different sites. The third is a larger database and risk management platform that assesses how various third-party services (for example advertising providers) work on a site and where they might pose data protection risks.
These are all provided either as a cloud-based software as a service, or an on-premises solution, depending on the customer in question.
The startup also has an interesting backstory that sheds some light on how it was founded and how it identified the gap in the market relatively early.
Alan Dabbiere, who is the co-chairman of OneTrust, had been the chairman of Airwatch — the mobile device management company acquired by VMware in 2014 (Airwatch’s CEO and founder, John Marshall, is OneTrust’s other co-chairman). In an interview, he told me that it was when they were at Airwatch — where Barday had worked across consulting, integration, engineering and product management — that they began to see just how a smartphone “could be a quagmire of privacy issues.”
“We could capture apps that an employee was using so that we could show them to IT to mitigate security risks,” he said, “but that actually presented a big privacy issue. If [the employee] has dyslexia [and uses a special app for it] or if the employee used a dating app, you’ve now shown things to IT that you shouldn’t have.”
He admitted that in the first version of the software, “we weren’t even thinking about whether that was inappropriate, but then we quickly realised that we needed to be thinking about privacy.”
Dabbiere said that it was Barday who first brought that sensibility to light, and “that is something that we have evolved from.” After that, and after the VMware sale, it seemed a no-brainer that he and Marshall would come on to help the new startup grow.
Airwatch made a relatively quick exit, I pointed out. His response: the plan is to stay the course at OneTrust, with a lot more room for expansion in this market. He describes the issues of data protection and privacy as “death by 1,000 cuts.” I guess when you think about it from an enterprising point of view, that essentially presents 1,000 business opportunities.
Indeed, there is obvious growth potential to expand not just its funnel of customers, but to add more services, such as proactive detection of malware that might leak customers’ data (which calls to mind the recently fined breach at British Airways), as well as tools to help stop that once identified.
While there are a million other companies also looking to fix those problems today, what’s interesting is the point from which OneTrust is starting: by providing tools to organizations simply to help them operate in the current regulatory climate as good citizens of the online world.
This is what caught Insight’s eye with this investment.
“OneTrust has truly established themselves as leaders in this space in a very short time frame, and are quickly becoming for privacy professionals what Salesforce became for salespeople,” said Richard Wells of Insight. “They offer such a vast range of modules and tools to help customers keep their businesses compliant with varying regulatory laws, and the tailwinds around GDPR and the upcoming CCPA make this an opportune time for growth. Their leadership team is unparalleled in their ambition and has proven their ability to convert those ambitions into reality.”
Wells added that while this is a big round for a Series A it’s because it is something of an outlier — not a mark of how Series A rounds will go soon.
“Investors will always be interested in and keen to partner with companies that are providing real solutions, are already established and are led by a strong group of entrepreneurs,” he said in an interview. “This is a company that has the expertise to help solve for what could be one of the greatest challenges of the next decade. That’s the company investors want to partner with and grow, regardless of fund timing.”
Powered by WPeMatico