SK innovation leads $139 mln funding in US ammonia-based energy solutions developer Amogy

By Kim Joo-heon Posted : March 23, 2023, 15:49 Updated : March 23, 2023, 15:49

[Courtesy of SK Innovation]

SEOUL -- As part of its strategy to establish a green portfolio, SK innovation affiliated with South Korea's SK group invested an additional $50 million in Amogy, an ammonia-based energy storage system developer based in New York. The U.S. startup has secured $139 million through the second round of investment led by SK Innovation.
Ammonia, which is produced through a chemical reaction between hydrogen and nitrogen, is considered an important part of a sustainable ecosystem. It is relatively easy to store and transport compared to hydrogen. Ammonia is processed through a technique called cracking to extract hydrogen. However, Ammonia can be used directly as fuel in high-temperature fuel cells, internal combustion engines, and gas turbines.
In June 2022, SK innovation invested $30 million in Amogy and agreed to cooperate in ammonia-based fuel cell systems, citing the potential of the American startup's technologies. In 2021, Amogy powered a 5-kilowatt-class drone and a 100-kilowatt-class tractor in 2022 using ammonia. Amogy also showcased an ammonia-based 300 kW class truck in January 2022.

Ammonia is usually transported to a plant through a separate cracker to extract hydrogen. However, Amogy's ammonia-to-power system is comprised of a standard liquid-storage tank and ammonia-cracking modules integrated into a hybrid fuel cell system, which can provide consistent primary power for several hours without refueling. 
SK innovation said in a statement that the company's funding is part of the $139 million Series B-1 fundraising which includes other investors such as Temasek, a Singaporean investment company, and Korea Zinc, a non-ferrous metals company in South Korea. Amogy is currently expanding its ammonia technology into vessels, which is set to be commercialized in 2024.
"SK innovation and Amogy are both aware of the significant role of ammonia in supplying clean energy, and we will keep making efforts in related research & development and market expansion," SK innovation CEO Kim Jun said in a statement on March 23.
"We greatly appreciate the investors sharing our bold mission, and we are laser-focused to bring our technology to market," Amogy CEO Woo Seong-hoon was quoted as saying. 
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