Alt fuels maker Amogy raises $46 million
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.