Cultivating a Better Future through Clean Ammonia Production
We are excited to announce our recent investment in Ammobia, a pioneering start-up dedicated to revolutionizing clean ammonia production technology.
We often talk about our investment philosophy and the importance of backing companies that satisfy consumer’s self-interest while promoting the broader interest as well. We call this the “villain test.” We want to support companies doing good in the world, but only those a villain would also be interested in (ie. investing for purely self interested reasons — eg. cheaper, better, faster, etc).
Ammobia passes this test with flying colors.
Founded by the visionary duo, Karen Baert and Tristan Gilbert, Ammobia has developed a flexible and cost-effective method for producing ammonia using clean hydrogen and air. Ammobia’s tech breakthrough allows them to operate and lower temperatures and pressures, and with increased yields, simplifies plant requirements, reduces costs, and enhances safety standards in production. This revolutionary approach not only paves the way for more sustainable ammonia production but also unlocks new potential applications that were previously unattainable.
Ammobia’s tech breakthrough allows them to operate and lower temperatures and pressures, and with increased yields, simplifies plant requirements, reduces costs, and enhances safety standards in production.
Ammonia plays a crucial role in our daily lives, even if we don’t always realize it. In agriculture, it serves as a nitrogen-rich fertilizer that nourishes crops and helps feed the world’s growing population. In the automotive industry, ammonia is emerging as a promising alternative fuel source, offering a cleaner and more sustainable way to power vehicles. Additionally, ammonia is used in the production of pharmaceuticals, textiles, and plastics, making it an indispensable building block for numerous products we rely on every day.
However, conventional ammonia production methods, such as the Haber-Bosch process, rely heavily on natural gas and emit harmful greenhouse gasses, accounting for approximately 1% of global GHG emissions. Ammobia’s technology aims to change that. Not only does Ammobia’s process cut out emissions associated with natural gas use, but this, combined with its flexible and modular approach to production is anticipated to reduce emissions by a whopping 80-95 percent.
Conventional ammonia producing plants are extremely large and centralized, and must be so to operate profitably. This is because these large facilities must operate continuously (another limitation of natural gas use) and be constantly recycling products (Haber Bosch is a low yield process). Ammobia’s flexible and modular approach is rooted in their ability to operate non-continuously, at lower volumes, and lower capex — harnessing local advantages such as reduced electricity costs and distribution and transportation costs.
While we care deeply about backing companies doing good, their products can’t be sacrificial. Otherwise, the returns will also be sacrificial. On the flip side, if you enable consumers and businesses to do good, feel good, and better compete, they will reward you handsomely. Ammobia’s technology not only benefits the environment but also offers a cost-effective solution for consumers and industries, making it a great fit for Collab.
We are thrilled to support Karen and Tristan and be part of their journey towards a better future. As they continue to scale and expand their reach, we are excited to witness the impact they will have on our planet and the lives of people around the globe.
More details on Ammobia’s recent funding announcement can be found here.