SK to invest $30 mn in ammonia-based power solutions developer Amogy

SK Innovation Co. announced Tuesday it will inject $30 million into Brooklyn-based Amogy Inc. 

The intermediate holding company of SK Group and the ammonia (NH3)-based, emission-free power solutions developer signed a memorandum of understanding (MOU) on investment and technical cooperation in San Jose, California two days prior.

MISSION AND INVESTORS

Amogy first made headlines last December when it landed an undisclosed amount of funding from Amazon.com Inc.’s Climate Pledge Fund.

Four alumni of the prestigious Massachusetts Institute of Technology’s doctoral program joined forces and founded Amogy in 2020. The mission is to decarbonize transportation for a sustainable future. 

On its website, the company says it aims to reduce at least 5 billion metric tons of carbon dioxide equivalent (CO2e) emissions by 2040; accelerating the global journey towards Net Zero 2050.

The company is building a novel portable carbon-free energy system using ammonia as a renewable fuel. The system claims to offer five times the energy density of a lithium-ion battery. 

Its notable investors include the aforementioned e-commerce giant Amazon and British venture capital firm AP Ventures, which specializes in businesses that incorporate the unique chemical and physical properties of Platinum Group Metals to solve global challenges.

TECHNOLOGY

In late May, the Brooklyn-based startup demonstrated a zero-emissions, ammonia-fueled tractor at Stony Brook University in New York. 

Amogy blended its ammonia-to-power technology into a standard mid-sized John Deere tractor, giving it a 100-kilowatt capacity. 

The technology uses ammonia cracking modules with a hybrid fuel cell system combined with a liquid storage tank. 

Last year, the startup demonstrated an ammonia-powered, zero-emission 1 kW drone.

Amogy hopes to apply its technology to trucks and cargo ships by 2023. In the future, it plans to develop a 500 kW class ammonia-based fuel cell and modules that can generate 5 megawatts of energy.

SK Innovation explains that its decision behind the latest investment comes on the back of the increasing likelihood that ammonia can be the key to vitalizing the eco-friendly hydrogen economy. 

The development of hydrogen fuel cell technology that produces electricity by injecting hydrogen as an energy source is happening worldwide.

But the efficiency of the process of storing and transporting hydrogen in an ultra-low temperature, i.e. -253 degrees Celsius, remains a problem.

The company sent out a press release earlier this month to claim that ammonia is a “viable zero-emission fuel for all heavy-duty vehicles, but especially for agriculture,” where the readily available chemical has been used as a fertilizer for decades. 

The statement added, “Ammonia offers a high energy density and there are plentiful existing infrastructures, such as pipelines, terminals, and storage methods, in the United States and globally, to support such a transition.”

AMMONIA VS HYDROGEN 

The liquefaction point for ammonia is -33.34 degrees Celsius, which results in lower energy consumption and carbon emissions than hydrogen. Not only that, the cost of transporting ammonia is half that of liquid hydrogen. 

The ammonia industry also has a robust distribution network around the globe that reached 18 million tons in 2017.  

SK Innovation believes that Amogy’s technology makes for a smooth transition to commercialization. The startup’s energy system encompasses an ammonia tank, fuel reformer, and hydrogen fuel cell. 

“The fruitful result was possible thanks to a collaboration between our ‘Carbon to Green’ strategy and Amogy’s standout technology,” SK Innovation's portfolio manager Kim Chul-joong said.

Kim added, “We will continue to build our environmentally friendly portfolio by actively developing and utilizing carbon-free energy sources.”

Amogy CEO Woo Seong-hoon stressed the importance of reducing the carbon footprint of the large vehicle sector to achieve Net Zero by the mid-21st century. 

The former IBM researcher said: “Ammonia is easy to secure and a sustainable means of reducing carbon footprint. We aspire to become the leading force in decreasing carbon emissions by ramping up our research and development.” 

Write to Okhee Ahn at ahnoh05@hankyung.com
Jee Abbey Lee edited this article.