Temasek, Aramco, Sosen Mitsui, Yanmar Join
Securing Rights for Asia-Oceania Ammonia Business Cooperation
SK Innovation has invested $50 million (approximately 65.4 billion KRW) in the US ammonia-based hydrogen fuel cell startup 'Amoji' to participate in building a global ammonia ecosystem for carbon reduction. This is the second investment following $30 million (approximately 39.2 billion KRW) last year.
SK Innovation announced on the 23rd that it participated in Amoji's recently raised $139 million (approximately 181.6 billion KRW) 'Series B-1' funding round. SK Innovation led the investment.
Participating companies include Singapore's sovereign wealth fund Temasek, Saudi Arabia's Aramco investment firm Aramco Ventures, UK hydrogen investment company AP Ventures, Japan's largest shipping company Mitsui O.S.K. Lines' investment arm MOL Plus, Japanese industrial engine company Yanmar's investment arm Yanmar Ventures, Japanese chemical company Zeon’s investment arm Zeon Ventures, and Korea's Korea Zinc. Startup investments are divided into three stages: Series B is the stage where business development is actively pursued. Series A supports product development, and Series C is for business expansion.
The large truck that Amoji demonstrated using an ammonia-based hydrogen fuel cell system [Photo by SK Innovation]
SK Innovation attributed significance to leading the investment in Amoji, which is gaining global attention. Amoji has secured ammonia fuel cell technology capable of producing sufficient energy without emitting carbon. Ammonia is easier to store and transport than hydrogen in liquid form and is also cheaper, making it an alternative for realizing a hydrogen economy.
SK Innovation continues its investment, judging that the group's 'Carbon to Green' vision aligns with Amoji's business. SK Innovation secures core technologies for carbon reduction, while Amoji gains opportunities to pioneer markets by leveraging SK Innovation's global network.
The tractor that Amoji demonstrated using an ammonia-based hydrogen fuel cell system [Photo by SK Innovation]
With this investment leadership, SK Innovation has strengthened its collaborative relationship with Amoji as a strategic investor. They have expanded the scope of cooperation in ammonia hydrogen fuel cell business development and commercialization in Asia and Oceania, where demand for clean energy is expected to grow. Going forward, they plan to discuss the broad direction of global future business cooperation with Amoji.
Following this funding, Amoji is conducting demonstration tests to apply its system to ships. They plan to begin demonstrations using a tugboat within this year, aiming for commercialization next year. Previously, Amoji powered a 5kW drone with ammonia in 2021 and a 100kW tractor last year. In January, they succeeded in driving a 300kW Class 8 heavy-duty truck (approximately 15 tons).
Kim Jun, Vice Chairman of SK Innovation, said, "The participation of global companies in the Series B-1 investment reflects the recognition of ammonia's high value as a clean energy source," adding, "Both companies believe ammonia will play an important role in supplying clean energy and will continue research and development (R&D) and market expansion."
Woo Seong-hoon, CEO of Amoji, said, "Building on this investment, Amoji has taken a step closer to commercializing the technology necessary to achieve net zero by 2050," and added, "We will continue to strive to ensure that ammonia hydrogen fuel cell systems play a crucial role in solving decarbonization and energy transition challenges."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
