Thank you for the opportunity to be here. LanzaTech converts waste carbon emissions into products, and it is not a science fiction story, it is real. We have production capacity today where we recycle carbon emissions and turn them into sustainable aviation fuel, marine fuel, and materials that you can wear. As a company, we have gone through a massive transition in the 2025 to 2026 period.
We are a revenue-producing company on the order of $50 to 60 million per year over the past two years, and intend to be in that same range this year. Our markets are large aviation and marine markets, which are over $2.5 trillion market opportunity. We are in the process of being certified so that we can meet European and U.K. regulations for transportation fuels, and most importantly, we have raised enough capital to continue to run the business through profitability.
Here is a picture of our six commercially operating plants across the world. These plants all convert something like a steel mill gas or a ferroalloy gas or a refinery off gas into ethanol. That ethanol then is a platform molecule we can convert to materials or aviation fuel. We are already producing over 150 million gallons a year of product, and I will give you an example of what our plants look like.
This is the plant in Europe that is sitting at an ArcelorMittal steel mill. You can see the four bioreactors in the background. What we do is we use bacterial fermentation, but instead of fermenting sugar, we ferment these carbon emissions. These carbon emissions are converted to ethanol, distilled, and recovered. This plant produces 15 million gallons a year.
If you do not know ArcelorMittal, they are the largest steel producer to the global auto industry, producing over 55 million tons a year of crude steel. Here is a video of the plant. The orange pipe brings the waste gas into our bioreactors where it is converted. One thing that I think is very important about this technology, you are used to fermentation, you are used to making beer from sugar. That fermentation is done in a batch process. This is a continuous process. Gas in, product out.
That is much more like a petroleum refining unit operation and is much more efficient than a batch process. Because in a batch process, you add the gas, you add the bacteria, and you go away for sometimes days, weeks, months to make the product. Here, you do it continuously. This chemistry happens in seconds. As you can see, these are real.
We have proven that our technology works at commercial scale. The way our revenues build out over the life cycle and this process of getting from starting conversation with a customer to full commercial operations tends to take on the order of three to four years. Our revenues come to us in discrete pockets after we execute engineering packages, et cetera. The large revenue and the recurring revenues come after the plant is in operations. A typical plant, like the one I showed you with ArcelorMittal, will bring on the order of $10 million a year when it is fully operating. It really is a nice model based on licensing of the technology. We are capital-light. These plants that I have shown you are built by our customer.
We provide services that enable those plants to be built and enable those plants to run, and then we capture value as they sell the ethanol that is produced in these plants. The problem with this, of course, is that after almost 20 years of technology development and commercialization, we get a royalty that is quite small relative to the hundreds of millions of dollars that our customer is able to get.
What we're starting to do, instead of going with a completely licensing model, we have started to use a development company type structure, so that instead of a pure license, we are actually able to capture development services in getting the plant running, but more importantly, some upside from the sale of the ethanol itself and from the sale of carbon credits.
We were only getting a percentage of that, and now we are accessing the ability to sell those products itself. The way we think about what you can do with ethanol, you're used to ethanol. Ethanol is always blended with gasoline for road transport. An emerging market now is using ethanol in the marine fuel sector, which is becoming a larger sector where decarbonization is becoming important.
The additional place where we can sell this ethanol is to people that want to use that ethanol to make polyester, polyethylene, or other chemicals. So ethanol becomes almost like a platform molecule that we can use directly, or we can use in conversion. One of the exciting markets that we have been accessing is sustainable aviation fuel using the alcohol, ethanol specifically, to get technology. We developed that technology many years ago and now have a commercial plant operating.
These types of production require us to take the ethanol and convert it to the product we want, as opposed to direct use like the three examples above. This is a plant that takes ethanol to sustainable aviation fuel, and it is owned by LanzaJet, and this plant, as you can see, is quite large and produces 10 million gallons a year. It is our first commercial ethanol to sustainable aviation fuel facility.
In fact, it is the only ethanol to sustainable aviation fuel facility in the world. It is currently operating in the last round that LanzaJet raised, had a $650 million valuation. We have a robust project pipeline, which in the next five years will help us achieve over $150 million in profits over that period. Each of these projects is either licensed or being developed by us. All of them produce greater than 13% IRR output.
We have a working relationship with Brookfield, who has committed to invest $500 million in projects that we deliver at final investment decision to them. It's a really nice opportunity to be able to deploy our technology. By leveraging this mixture of licensing and development, we are able to access much larger profits than we have been to date.
While we focus on sustainable aviation fuel and marine fuel, I think it's important to note that we have developed a strong synthetic biology platform that will someday allow us to produce not just ethanol, but go directly to chemicals. The beauty of biology versus the oil sector's thermocatalytic processes is once you've built a reactor, like all of our six commercial operating plants, you don't need to build a new plant to make a different molecule.
While we make ethanol in those plants today, you could easily just add another microbe, removing the ethanol microbe, and using the same facility, make a variety of higher value chemicals. This is the value of a synthetic biology platform that we already have in place, but it is technology deployment, which we are leaving as a secondary to deploying the technology and getting to revenues.
When you think about LanzaTech and you think about LanzaTech's platform, I think we need to look beyond LanzaTech's market capitalization. One of our companies, a JV we have in China, where the first four commercial plants actually sit, taking steel mill gas to ethanol. This is part of a JV called Shougang LanzaTech. We own 8.3% of that JV, and that JV has IPO'd and is a public company in the Hong Kong Stock Exchange.
Our value today is on the order of $110 million. We own 46% of LanzaJet. We are in the process of certifying our plants to increase our margin. These are the already operating plants, so it is not a certification of a future plant. For the synthetic biology, like I said, we have built that platform, but we do not want it to be a priority right now because we are focused on deploying commercial plants. We have a non-exclusive license with BRIGHT in Denmark, which leverages our AI and synthetic biology capability to enable them to continue to build that capability and use it for their own work. If you look at this, you can see that it is a package, a portfolio of companies.
I tend to think about it a little bit like what Elon Musk is doing, where he has got a space company, a car company, et cetera. Our JV in China is shown here. This is its value in the market. It has gained over 62% since it IPO'd on 3 June . Like I said, we own 8.38% of what is now a market cap company of $1.22 billion . I already mentioned certification. We have been accessing road transport fuels, but with the certification, we will be able to access road transport fuels in the European Union. Those are much higher value markets. What we are really trying to do is go from we have demonstrated the technology to the technology is operating, producing, and now we are trying to capture higher margins.
This is actually really important for us to be able to start to create more margin and get away from just proving the technology works. I talked a little bit about our synthetic platform. We are the only company that has fully operating and now second generation biofoundries that are able to use anaerobes. Because of the fact that we have been developing this technology for almost 16 years, we have the ability now not only to use the data that we have captured, but to train the models that enable us to go much faster.
This is what AI is really about, and unlike large language models, these are large chemical models which are actually unique in the industry. I would highlight that it is really important to remember that we work with anaerobic bacteria, so the potential in chemicals is great, but the potential in pharma is even greater.
Most of the things that are, for example, antibiotic resistant are anaerobes, and we have the genetic footprint of the anaerobe that we have been using in chemical production. As I said, this is a longer-term exercise, but we have been working with BRIGHT and DTU, who is very excited to have access to our technology and is developing further so that we can use it more broadly using different waste gases from carbon monoxide to carbon dioxide to biomethane, and then use that to make products. At any rate, I think we are at an inflection point, and we have made tremendous progress. We now know that our technology works. We are not de-risking the technology. We now know that we are being certified for the first time.
We will be the first certified recycled carbon fuel ever in Europe, and that is because finally the legislation has caught up and understands that sugar and corn are not the only feedstocks for making ethanol. Of course, we have these large markets like sustainable aviation fuel, and we have shown you that we can take ethanol and make sustainable aviation fuel.
From a where we are perspective, as I said at the beginning, we have gone through a massive transformation over the past couple of years. Our revenues have stayed stable relative to 2025, the same quarter 2025. However, we have done that while having reduced our operating expense by almost 70%, which of course means our operating loss has improved by 70%. This is an important transformation that we have gone through, and we remain stable on the revenue side and continue to grow our top line.
We are back to reinstating guidance now that we have reduced the company expenses and streamlined it. We have gone ahead and started earnings calls and also reinstituted guidance so that we can start to show the market the progress that we are making. Strong foundation for the second half of this year, and we are really excited to be back.
Finally, on our priorities for the year, I keep saying deploy, deploy. Accelerate commercialization, complete the certification so we can get higher margins. Really maintain the financial discipline. We have demonstrated the cost reduction over the last two quarters. We need to stay on top of that because it is always easy to grow your expenses, and we absolutely do not want to do that. Continue to create value and grow our top line. I think we have reset the company.
I feel good about the progress we have made, and more importantly, I feel good about the progress that the whole ecosystem has made, allowing our recycled carbon products to have a seat at the table, receive the same government incentives, but also the same value on sales. Thank you very much for taking the time to listen to our story.