Amogy raises $80M to power ships and data centers with ammonia
In a significant boost to clean energy innovation, Brooklyn-based startup Amogy has successfully raised an additional $23 million, bringing its total recent fundraise to an impressive $80 million. This latest investment elevates the company’s valuation to $700 million, signaling strong investor confidence in its groundbreaking ammonia-to-power technology. The round was spearheaded by the Korea Development Bank and KDB Silicon Valley LLC, with notable participation from BonAngels Venture Partners, JB Investment, and Pathway Investment.
Amogy’s strategic focus on promising foreign markets, particularly in Asia, has allowed it to navigate the complexities of a rapidly evolving climate tech landscape. Co-founder and CEO Seonghoon Woo highlighted that demand for Amogy’s core technology is particularly robust in countries like Japan and South Korea, which are actively seeking innovative solutions to expand their power generation capabilities without relying heavily on traditional renewable sources or nuclear power.
Traditionally, ammonia is widely recognized as a component in plant fertilizers. However, its potential as a hydrogen carrier is now gaining significant traction. Hydrogen, while a clean fuel, poses challenges in transportation due to its flammability and propensity for leaking. Ammonia offers a safer and more efficient means to transport hydrogen, making it a viable alternative for energy production.
Asian nations are increasingly integrating ammonia into their energy strategies, burning it alongside fossil fuels in existing power plants to reduce carbon emissions. Similarly, the shipping industry is exploring ammonia as a replacement for diesel, driven by the International Maritime Organization’s (IMO) impending carbon tax, set to commence in 2027.
While the co-combustion of ammonia with fossil fuels reduces emissions, it doesn’t achieve full decarbonization. Amogy’s proprietary technology offers a revolutionary solution: a complete fossil-fuel-free power generation method using ammonia. The process involves cracking ammonia to extract its three hydrogen atoms from each nitrogen atom. This hydrogen is then fed into a fuel cell, generating electricity and water vapor, with pure nitrogen released harmlessly into the air. Crucially, this combustion-free approach eliminates the release of NOx pollution, which is known to cause smog and a range of health issues.
Following successful tests in a tugboat, Amogy is on track to deploy its commercial-scale system in a ship within the next couple of years. Beyond maritime applications, the company is also developing power plants to serve terrestrial customers, including data centers. The first such plant, capable of generating 500 kilowatts to one megawatt of electricity, is expected to commence operations in the coming years, with the flexibility for customers to deploy multiple units in parallel for increased power output.
Woo noted that Amogy’s expansion into Japan and South Korea aligns perfectly with these countries’ efforts to develop robust ammonia infrastructure. By the end of the decade, coal power plants in both nations are anticipated to incorporate ammonia into their operations. While initial ammonia supplies may come from the U.S. and the Middle East, with carbon capture measures likely required to meet stringent Asian market standards, the long-term vision is a transition to green hydrogen sources for ammonia production. As Woo aptly puts it, Asian countries envision ammonia as “the next LNG, but without the carbon.”
