SK Innovation, one of the leading energy companies in South Korea has announced a $50 million investment in Amogy, a clean energy solution provider based in the US. SK Innovation is planning to expand its presence in the sustainable fuel and energy market across the country and worldwide scale.
Founded in 2020, Amogy is a pioneering company in developing emission-free as well as energy-dense ammonia power solutions to decarbonize transportation for a better nature-friendly future. It has the vision to make zero emissions a reality by 2050. The company is fixated on developing a fuel cell system capable of directly turning liquid ammonia into hydrogen without the worry of carbon emissions.
In 2021, Amogy assembled a 5-kilowatt drone along with a 100-kilowatt tractor via power derived from ammonia. This year an ammonia-powered class 8 semi-truck was tested by the carbon cautious company.
For Amogy, SK Innovation participated in their newest Series B-1 funding round which successfully raised a total of $139 million. The majority of investment i.e. $50 million came from SK corporation’s side while the remaining portion was led by foreign investors like Singaporean state holding company named Temasek, Saudi Arabian Oil Group Saudi Aramco, a London-based independent venture capital firm AP Ventures, and global marine logistics company Mitsui O.S.K. Lines Ltd from Japan.
Apart from SK Innovation, the Series B-1 investors also comprise a few South Korean businesses including Korea Zinc, a top-notch refined zinc-producing company in the country.
Over the years, SK Innovations has indulged in commercializing ammonia-based hydrogen fuel cells and other clean energy consumption specifically across the Asian continent and Oceania. It is not the first moment where SK Innovation has shown support for Amogy. Last year also Amogy was provided $30 million for building and researching cutting-edge ammonia-to-power technology.
When it comes to eco-friendly fuels, ammonia does hold great significance. It is some of the limited alternatives to hydrogen. Where hydrogen is pricey and hard to store, ammonia stands on the opposite end. Ammonia is cheaper, easier to store, transport and better practicable especially in its liquefied state.
In a short span of its establishment, Amogy has considerably developed super-efficient ammonia-to-power technology. Although it’s just near perfect, it’s exactly what aligns with SK Innovation and its Carbon to Green strategy or goals. It is expected that Amogy will be able to launch its first product by 2024 in the Korean marketplace.
SK Innovation and Amogy recognise the prospect of employing clean fuel in everyday life. Both parties are determined to research and develop sustainable products in the future. Their business development ideals share commonality with the South Korean government’s aims as well.
South Korea’s maritime ministry last month declared its strategy to decarbonise the shipping sector for the next 27 years. The Korean government wants to convert ships, especially ships owned by the administration into ships that run on eco-friendly fuels. Just like that, South Korea has plans to develop eco-friendly technology along with infrastructure for a better future.
According to Seonghoon Woo who’s the co-founder and CEO of Amogy, the new funding is going to help them in achieving their ‘Net Zero 2050’ mission. The Brooklyn-based clean energy startup has confidence in its upcoming products and its world-changing capacity.