Amogy Secures $80M to Revolutionize Power with Ammonia

Amogy Secures $23 Million Funding Amidst Shifting Climate Tech Landscape

Climate technology startups are navigating a period of considerable change, influenced by factors ranging from tariffs to recent legislative actions. However, Amogy, a startup headquartered in Brooklyn, has successfully mitigated challenges stemming from U.S. political dynamics by concentrating its efforts on international markets with greater potential.

Focus on Asian Markets Drives Investment

Amogy’s innovative ammonia-to-power technology, coupled with its strategic focus on key Asian markets – specifically Japan, South Korea, and Singapore – has resulted in a new funding round of $23 million. This latest investment elevates the company’s total funding to $80 million and increases its valuation to $700 million, as reported by co-founder and CEO Seonghoon Woo to TechCrunch.

The funding round was spearheaded by the Korea Development Bank and KDB Silicon Valley LLC, with further participation from BonAngels Venture Partners, JB Investment, and Pathway Investment.

Demand for Novel Power Generation Solutions

While primarily based in the United States, Amogy has identified substantial demand for its core technology within Japan and South Korea. These nations are actively seeking innovative methods to broaden their power generation capabilities.

“These countries lack the high-quality renewable resources like solar, wind, and geothermal, and are also facing limitations in developing nuclear power infrastructure,” Woo explained.

Ammonia as a Hydrogen Carrier

Although widely recognized as a key ingredient in plant fertilizers, ammonia also functions as an effective hydrogen carrier. Hydrogen, in its pure form, presents challenges for transportation due to its flammability and propensity for leakage. Utilizing a carrier like ammonia simplifies this process.

Asian nations are increasingly employing ammonia in existing fossil fuel power plants as a means of reducing carbon emissions, typically substituting a portion of coal with ammonia.

Impact on the Shipping Industry

The shipping sector is also adopting ammonia as a replacement for diesel fuel. This trend is fueled by impending regulations from the International Maritime Organization, which will introduce a carbon tax for maritime shipping starting in 2027.

However, it’s important to note that current ammonia combustion methods still require the co-firing of some fossil fuels, preventing complete decarbonization.

Amogy’s Approach to Full Decarbonization

Amogy is pioneering a method to completely eliminate fossil fuel reliance by utilizing ammonia as a fuel source. The process involves separating three hydrogen atoms from each nitrogen atom.

The resulting hydrogen is then channeled into a fuel cell, generating electricity and water vapor, with pure nitrogen released as a byproduct.

This combustion-free process eliminates the emission of NO_x pollutants, which contribute to smog and various health issues.

Deployment and Future Plans

The startup has already successfully tested its technology on a tug boat and remains on schedule to deploy a commercial-scale system on a ship within the next two years.

Furthermore, Amogy is developing a power plant designed to supply electricity to land-based customers, including data centers. The first of these plants is projected to begin operation in the coming years.

Initial systems will have a capacity of 500 kilowatts to 1 megawatt, with the option for customers to deploy multiple units in parallel for increased power output.

Strategic Timing and Infrastructure Development

Woo emphasized that Amogy’s focus on Japan and South Korea is strategically aligned with the ongoing development of ammonia infrastructure in these countries. It is anticipated that coal power plants in both nations will incorporate ammonia into their operations by the end of the decade.

Initially, the ammonia supply will likely originate from the U.S. and the Middle East, leveraging inexpensive natural gas for hydrogen production. Asian countries are establishing standards to limit carbon emissions associated with ammonia production, potentially requiring carbon capture technologies.

Looking ahead, Woo envisions a transition to green hydrogen sources for ammonia production. He stated that Asian countries view ammonia as “the next LNG, but without the carbon.”