Ammobia raises $7.5M to modernize ammonia production

Ammobia has raised a $7.5 million seed round to scale a modified version of the Haber-Bosch process—the standard industrial process for ammonia synthesis. The startup claims its modified process can reduce ammonia production costs by up to 40%.

The funding round included participation from:

• Air Liquide’s venture arm, ALIAD
• Chevron Technology Ventures
• Chiyoda Corporation
• MOL Switch
• Shell Ventures

The traditional Haber-Bosch process is a significant global polluter, producing nearly 2% of global greenhouse gases. To synthesize ammonia, traditional plants use an iron catalyst to react nitrogen—which makes up nearly 80% of the atmosphere—with hydrogen. This reaction requires high heat of 500°C and pressure of around 200 bar (or 2,900 psi), conditions typically sustained by burning fossil fuels. Ammobia’s alternative process runs at around 150°C cooler and at 10x lower pressure. By operating at lower temperatures and pressures, the company can use cheaper pumps and equipment, reducing upfront capital costs. This approach could offer a cleaner production pathway for markets like the U.S., while supporting countries like Japan and South Korea, where governments have developed industrial and transportation roadmaps that rely on ammonia as an alternative to hydrogen for decarbonization.

The startup emphasizes that its process works with any source of hydrogen or heat. However, because the process runs at lower pressure, it is easier to ramp production up and down, allowing renewable developers to take advantage of surplus electricity production to make cheap hydrogen and ammonia.

“Our technology is very compatible with renewable energy, that leads to an additional cost reduction because you don’t need to store hydrogen or store electricity. In these situations, we have the strongest cost advantage,” said Karen Baert, Ammobia co-founder and CEO.

The reduced temperature and pressure requirements also allow Ammobia to make its equipment smaller than a typical Haber-Bosch plant. While typical ammonia facilities generate between 1,000 and 3,000 tons per day, Ammobia’s commercial-scale unit will produce 250 tons per day, according to Baert. The startup has been operating a small unit for about a year, and the new funding will help the company build a pilot plant with a daily production capacity of 10 tons.

Why it matters

Ammobia’s ability to lower ammonia production costs by up to 40% could make the chemical a more viable, cleaner alternative to hydrogen for industrial decarbonization globally. If the startup succeeds, it could pave the way for ammonia to be used beyond fertilizer.