South Korean Energy Company Invests in US Startup Amogy for Ammonia-Based Fuel Development

The logo of SK Innovation in front of its headquarters in Seoul, South Korea, on Feb. 3, 2017. (Kim Hong-Ji/Reuters)

South Korean energy company SK Innovation announced on June 14 that it will invest $30 million in U.S.-based Amogy to develop ammonia-based fuel cell systems as it seeks to expand businesses in low-carbon energy.

The two companies signed a memorandum of understanding on technology cooperation in San Jose, California, on June 12, Yonhap News Agency reported.

SK Innovation stated that it plans to build ammonia-based fuel cell system technology and expand the related market.

Amogy was established in November 2020 by four doctoral graduates from the Massachusetts Institute of Technology with the goal of converting ammonia into a sustainable power source and, as a result, decarbonizing transportation.

According to Amogy, ammonia has a relatively high energy density that allows vehicles to be compact, lightweight, and travel for longer durations.

Speaking at the SKI Global Forum in San Jose, SK Innovation Vice Chairman Kim Jun said the company was accelerating business portfolio innovation centered on low-carbon energy and a circular economy.

“With the trend to pursue carbon neutrality in response to the climate crisis, the world has quickly shifted to using low-carbon energy. The key is the circular economy that prevents pollution by reducing wastes and efficiently using resource[s],” Kim said.

In May, the company signed an agreement with TerraPower, a U.S. company founded by Bill Gates, for small modular reactors-based projects. The agreement was signed alongside SK Inc., the holding company of SK Group.

South Korea’s energy companies began expanding their nuclear energy businesses after President Yoon Suk-yeol pledged to increase nuclear power plants, signaling a U-turn from former President Moon Jae-in’s nuclear phase-out policy.

South Korean shipbuilder Samsung Heavy Industries signed a memorandum of understanding on April 12 with Seaborg, a Denmark-based nuclear reactor developer, to develop floating nuclear power plants.

In April, U.S.-based NuScale Power announced that it had signed a memorandum of understanding with South Korean companies Samsung C&T Corp., Doosan Enerbility Co., and GS Energy Corp. to explore small modular reactor deployment.

“Along with financial support, Doosan, Samsung and GS Energy will lend their respective expertise to NuScale Power in areas such as component manufacturing, prior nuclear construction experience, and power plant operation,” NuScale said in a statement.

Currently, nuclear power makes up roughly 27 percent of South Korea’s power mix, with 35 percent coming from coal and 29 percent coming from liquefied natural gas. Yoon pledged to boost nuclear power’s contribution to 30 percent and export 10 nuclear power plants by 2030.

Reuters contributed to this report.