In a significant stride toward sustainable energy, Brooklyn-based startup Amogy has successfully raised $80 million in its latest funding round, elevating the company’s valuation to $700 million. This round was spearheaded by the Korea Development Bank and KDB Silicon Valley LLC, with additional investments from BonAngels Venture Partners, JB Investment, and Pathway Investment. The infusion of capital is set to accelerate Amogy’s development and deployment of ammonia-to-power technologies, particularly targeting the maritime industry and data centers.
Strategic Focus on Asian Markets
Amogy’s strategic emphasis on Asian markets, notably Japan, South Korea, and Singapore, has been instrumental in attracting this substantial investment. These nations are actively seeking innovative solutions to expand their power generation capabilities while mitigating carbon emissions. Seonghoon Woo, Amogy’s co-founder and CEO, highlighted the unique challenges these countries face, stating, They don’t have as high quality solar, wind, and geothermal resources, and they are not really in the best position to build a nuclear power either.
Ammonia as a Viable Energy Carrier
Traditionally utilized in fertilizer production, ammonia is emerging as a promising hydrogen carrier due to its ease of transport and storage compared to hydrogen gas. This characteristic positions ammonia as a viable alternative fuel, especially in regions with limited renewable energy resources. Asian countries have initiated the integration of ammonia into existing fossil fuel power plants, blending it with coal to reduce carbon emissions. Similarly, the maritime industry is exploring ammonia as a substitute for diesel fuel, driven by impending carbon taxes from the International Maritime Organization set to commence in 2027.
Amogy’s Innovative Approach to Decarbonization
While blending ammonia with fossil fuels offers partial emission reductions, Amogy is pioneering a method to achieve complete decarbonization. The company’s technology involves cracking ammonia to separate hydrogen atoms from nitrogen. The extracted hydrogen is then fed into a fuel cell, generating electricity and emitting only water vapor and nitrogen, thereby eliminating carbon emissions. This process also avoids the production of nitrogen oxides (NOₓ), pollutants associated with combustion that contribute to smog and health issues.
Demonstrated Success and Future Plans
Amogy has already demonstrated the efficacy of its technology by retrofitting a 67-year-old tugboat, the NH₃ Kraken, to operate on ammonia. This vessel successfully completed its maiden voyage on a tributary of the Hudson River, marking a significant milestone in the maritime industry’s efforts to reduce carbon emissions. The company is on track to deploy a commercial-scale system in a ship within the next few years. Beyond maritime applications, Amogy is developing power plants designed to supply electricity to terrestrial customers, including data centers. The initial systems are expected to produce between 500 kilowatts and one megawatt of electricity, with the potential for scalability through parallel deployment.
Alignment with Global Decarbonization Goals
Amogy’s focus on Japan and South Korea aligns with these countries’ initiatives to develop ammonia infrastructure. By the end of the decade, coal power plants in both nations are anticipated to incorporate ammonia into their operations. Initially, ammonia supplies are likely to originate from the U.S. and the Middle East, where hydrogen derived from natural gas is used to produce ammonia. However, Asian countries are establishing standards to limit carbon emissions from ammonia production, prompting producers to implement carbon capture technologies. The long-term objective is to transition to green hydrogen sources for ammonia production, positioning ammonia as a low-carbon alternative to liquefied natural gas (LNG).
Conclusion
Amogy’s recent funding success underscores the growing interest and investment in ammonia-based energy solutions as viable alternatives to traditional fossil fuels. By focusing on innovative technologies and strategic markets, Amogy is poised to play a pivotal role in the global transition toward sustainable energy, particularly in sectors that are challenging to decarbonize, such as maritime shipping and data centers.
