This start-up says it has reinvented a 100-year-old technology
What's the story
Ammobia, a start-up, is significantly improving the production of ammonia, a key ingredient in fertilizers and other industries. The company has tweaked the Haber-Bosch process, which has been used for over a century to produce ammonia. Ammobia's innovation could cut production costs by as much as 40%. The start-up has raised $7.5 million in seed funding from investors including Air Liquide's venture arm ALIAD, Chevron Technology Ventures, Shell Ventures, Chiyoda Corporation, and MOL Switch.
Industrial applications
Ammonia's potential beyond fertilizers
Ammonia is being explored as a possible alternative to hydrogen for decarbonizing various industries. Countries like Japan and South Korea have even drawn up industrial and transportation plans centered around ammonia. "The big advantage of ammonia is that it's much easier and more cost-effective to transport and store," said Karen Baert, co-founder and CEO of Ammobia.
Pollution concerns
Ammonia production's environmental impact
The Haber-Bosch process, while effective, is also a major contributor to global greenhouse gas emissions. It accounts for nearly 2% of the world's total greenhouse gases. The traditional method uses an iron catalyst to combine nitrogen and hydrogen under high heat (500 degree Celsius) and pressure (around 200 bar or 2,900 psi), both typically provided by burning fossil fuels. This makes ammonia production a significant source of pollution globally.
Innovative approach
Ammobia's process: A cleaner alternative
Ammobia's process operates at a much lower temperature and pressure, resulting in less pollution even if fossil fuels are still used. The start-up also claims its method is cheaper as it can use less expensive pumps and equipment due to the lower temperature and pressure requirements. This could give producers an edge since most ammonia producers have only two ways to cut costs: find a cheaper heat source or hydrogen source.
Renewable synergy
Compatibility with renewable energy
Ammobia's process is compatible with any hydrogen or heat source, including renewables. The start-up says its technology works best when there's excess electricity production to make cheap hydrogen and thus cheap 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," Baert said.
Expansion strategy
Ammobia's commercial-scale unit and future plans
Ammobia's commercial-scale unit will generate 250 tons of ammonia per day, much smaller than the typical Haber-Bosch plant which produces between 1,000 and 3,000 tons per day. The company has been running a small unit for about a year now. The new funding will help build a pilot plant with all features of the commercial model on a smaller scale (about 10 tons per day).