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Alt fuels maker Amogy raises $46 million

Jun 23, 2022
Illustration of a semitruck and shipping containers surrounded by abstract shapes and money elements.

Illustration: Gabriella Turrisi/Axios

Amogy, a Brooklyn-based startup that wants to make ammonia-based fuels for trucks and ships, raised $46 million in bridge financing, the company tells Axios.

Why it matters: All-electric cargo ships and heavy-duty trucks remain elusive.

  • Batteries would need to be extremely large — and heavy — to generate enough energy to power heavy industrial vehicles, which limits capacity and effectiveness.
  • Ammonia has become an increasingly appealing fuel alternative for shipping and logistics companies that want to move away from diesel to decrease overall emissions.
  • Amogy's fuel is projected to become commercially available in 2024, CEO Seonghoon Woo says.

Zoom in: Bridge financings are one way founders can extend their runways without taking on additional dilution during a market pullback.

  • They also can be born of necessity.
  • Woo declined to comment on if the company tried to raise a standalone round following its Series A infusion last November.
  • "It was the company's strategic decision considering many aspects, including current/future market dynamics, the interest from investors, and fund availability, which we cannot comment further on," Woo tells Axios.

Details: SK Innovation led the convertible note round, which also included existing investor Amazon via its Climate Pledge Fund. AP Ventures, Saudi Aramco Energy Ventures and Newlab also participated.

  • Woo declined to comment on whether any of the round's new investors would join Amogy's board.
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