Alt-fuel maker Amogy nabs $139M, led by SK Innovation
Amogy, a Brooklyn-based alternative fuels maker, raised $139 million in Series B-1 funding, the company tells Axios.
Why it matters: Alternative fuels are still a long way from broad commercialization, but the Amogy funding shows investors are willing to write big checks to get the technology off the ground.
Details: SK Innovation led the all-equity round and will "closely collaborate" with Amogy, though Amogy CEO Seonghoon Woo declined to share whether SK Innovation was joining the startup's board.
- Temasek, Korea Zinc, Aramco Ventures, AP Ventures, Mol Plus, Yanmar Ventures, Zeon Ventures and DCVC also participated in the round, which closed in mid-March.
- With the new funds, Amogy has raised more than $200 million since its founding two-and-a-half years ago.
The intrigue: This tranche of funding is a primary Series B raise, with the full round with additional funding expected to close later this year, Woo says.
How it works: Amogy (pronounced "ah-moe-jee," a play on combining the words "ammonia" and "energy") makes ammonia-based fuels for heavy-duty vehicles and maritime vessels, Woo says.
- Its technology converts all types of ammonia to electricity, which can then be used to power large vehicles.
- The company built an ammonia-powered tugboat that it plans to demonstrate in New York later this year.
However, ammonia production is still an emissions-heavy process that will require more decarbonization to create a truly net-zero fuel.
- Amogy plans to work with groups like Saudi Aramco, whose venture arm is an investor, to increase the supply of green and blue ammonia for its fuel, Woo says.
The bottom line: Even with a large influx of cash, Amogy still has a long way to go to create a commercially viable alternative fuel.