Amogy raises $80M to power ships and data centers with ammonia

Amogy, a Brooklyn-based startup, has successfully navigated the complexities of the evolving climate tech landscape, securing a significant $80 million in funding. This impressive financial boost, which includes a recent $23 million round, elevates the company's valuation to $700 million, according to co-founder and CEO Seonghoon Woo. The funding round was led by the Korea Development Bank and KDB Silicon Valley LLC, with additional investments from BonAngels Venture Partners, JB Investment, and Pathway Investment. While Amogy primarily operates in the United States, it has identified a growing demand for its innovative ammonia-to-power technology in Asian markets, particularly Japan, South Korea, and Singapore. These countries are seeking alternative solutions for power generation, as they face limitations in their renewable resources and nuclear infrastructure. Woo noted that their geographical constraints make ammonia a viable option, as these nations gradually transition to using ammonia in existing fossil fuel power plants by substituting portions of coal with this compound. Ammonia, traditionally known for its role in fertilizers, is also recognized as a hydrogen carrier—making hydrogen transportation more feasible. This shift is critical as the International Maritime Organization prepares to implement a carbon tax on maritime shipping by 2027, prompting shipping companies to consider ammonia as a replacement for diesel. However, burning ammonia in power plants or ships still necessitates the use of some fossil fuels, hindering complete decarbonization. To address this, Amogy is pioneering a technology to utilize ammonia as a standalone fuel source. Their process involves extracting three hydrogen atoms from each nitrogen atom in ammonia, which then powers a fuel cell to generate electricity while emitting only pure nitrogen and water vapor, eliminating harmful NOx pollutants that contribute to smog and respiratory issues. Having already tested its technology on a tugboat, Amogy is on track to deploy commercial-scale systems on ships within the next few years. In addition, the company is developing a groundbreaking power plant designed to cater to terrestrial clients, including data centers, with the first of its kind expected to commence operations soon. Initial systems will generate between 500 kilowatts and one megawatt of electricity, with the potential for scalability. As Japan and South Korea enhance their ammonia infrastructure, the demand for ammonia is projected to grow significantly. Initially, this ammonia may be sourced from the U.S. and the Middle East, where natural gas is utilized to produce hydrogen for ammonia production. With the establishment of carbon pollution standards for ammonia production in Asian markets, there is a pressing need for producers to adopt carbon capture techniques, paving the way for a greener future. Woo expressed optimism, stating that these countries view ammonia as the next liquefied natural gas (LNG) solution, but without the associated carbon emissions.