Microsoft (MSFT) has made a $50 million investment in LanzaJet, a sustainable fuels technology company. The investment by the Microsoft Innovation Fund will aid in the construction of the world’s first alcohol-to-jet fuel production plant. MSFT shares fell 4.23% to close at $304.80 on January 13.
Microsoft is a technology company that offers an array of software services and solutions. It also deals in personal computers, tablets, and gaming consoles. Microsoft’s earnings report for Fiscal Q2 2021 is scheduled for January 25, 2022.
The $50 million investment is part of Microsoft’s push to become carbon negative and advance a net-zero economy by 2030. It should also allow LanzaJet to bring to market a lower cost sustainable aviation fuel.
The sustainable fuels technology company is also working on renewable diesel. The company is close to completing on-site engineering at its Freedom Pines Fuels Biorefinery, expected to produce 10 million gallons of sustainable aviation fuel per year.
The investment by Microsoft affirms its commitment to decarbonizing the atmosphere. According to Reuters, Microsoft has already set aside $1 billion as part of its Climate Innovation Fund. The funds are to go towards accelerating the development of carbon removal technology.
Meanwhile, BMO Capital analyst Keith Bachman recently reiterated a Buy rating on Microsoft stock and raised the price target to $360 from $355, implying 18.11% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 24 Buys and 1 Hold. The average Microsoft price target of $373.91 implies 22.67% upside potential to current levels.
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