Green ammonia startup Amogy has raised $11.2 million out of a targeted $90 million round, according to an SEC filing. The new round’s target is significantly smaller than the last round – a $139 million Series B-1 announced in March 2023 – highlighting the challenges facing mid-sized climate startups today they are trying to attract investment.

Amogy did not immediately respond to questions about the funding round.

The company focuses on various transportation markets, including maritime, long-haul and agricultural. Earlier this year, Amogy tested its ammonia-to-power technology in a retrofitted tractor and previously in semi-trucks and farm tractors.

Many green ammonia startups are targeting long-distance transportation in part because, with a few modifications, ammonia can be burned in traditional internal combustion engines, although ignition requires a so-called pilot fuel such as diesel or biofuel. Depending on the ignition fuel, switching to ammonia eliminates most, if not all, carbon emissions, but also produces nitrogen oxides, a class of pollutants that contribute to smog and acid rain and can cause global warming.

Amogy takes a different approach than most. Instead of burning the ammonia, the fuel is split into nitrogen and hydrogen. The nitrogen is released as a harmless nitrogen gas while the hydrogen flows through a fuel cell that produces electricity and water. The setup also requires no pilot fuel, meaning it is carbon-free from the start.

While Amogy doesn’t already reuse combustion engines in trucks and ships, it should find at least some receptive customers, particularly in the maritime industry. The industry has set a deadline of 2050 to achieve net zero carbon emissions.