First Ammonia has attracted investment from two Japanese investors in its Series B funding round.
The milestone in the capital raise includes investment commitments from Mercuria Holdings and the Tokyo-based investment firm Manies Group, according to sources familiar with the deal.
Morgan Stanley is First Ammonia’s financial advisor, as reported previously by ReSource.
The Series B investments will help launch the fabrication of First Ammonia’s next generation green ammonia plant, the company said, which will deploy Topsoe’s solid oxide electrolyzer cells (SOEC) integrated with an ammonia loop to maximize the ammonia output with the lowest possible electricity input.
A spokesperson for First Ammonia did not respond to additional questions about the deal.
The New York-based firm earlier this year launched a process to find a renewable energy partner for its flagship project at Port of Victoria, Texas, with Verdonck Partners serving as advisor.
The investments also bring First Ammonia closer to FID at the Port of Victoria project, for which it has partnered with Germany’s Uniper for offtake.
“While the Topsoe and Uniper partnerships have established First Ammonia’s transatlantic ties, these Series B investments establish First Ammonia’s transpacific ties to Japan and the larger Asia-Pacific region,” the company said.
In a news release published in Japanese, Mercuria said it has reached an agreement with First Ammonia to collaborate on project development and finding offtakers in Asia.
“While making the most of our company’s edge as an innovator, we will collaborate with offtakers mainly in Japan and promote transportation and related infrastructure development projects in the future, contributing to increasing Japan’s presence in the green ammonia business,” Manies Group Inc. CEO Hirotsugu Fujii said.
The Manies Group is a Tokyo-based investment company that focuses on next-generation growth opportunities.
‘Epic-scale’
“Through this investment, we will not be limited to the business in the private sector but will have the potential to build a medium to long-term, epic-scale platform business (green ammonia supply chain) by collaborating between the public and private sectors and involving strategic partners in Asia,” Mercuria Holdings CEO Toshihiro Toyoshima said. “With this investment, we hope to contribute to building a green ammonia supply chain through our main business of fund management.”
Mercuria Holdings is a holding company of Mercuria Investment, established in 2005 by founding members from the Development Bank of Japan (DBJ).
The Japanese news release notes that First Ammonia is aiming to develop 20 projects across the U.S., South America, Southeast Asia, and Europe by 2030. Construction on the Port of Victoria project is scheduled to start in 2025 with commercial operations commencing in 2026.
First Ammonia CEO Joel Moser said in an interview last year that the first 100 MW train of the Port of Victoria project is estimated to cost approximately $300m, while the full 300 MW will cost between $900 – $1bn.
“We are excited to welcome Mercuria Holdings and the Manies Group to the First Ammonia team as we work together with our partners to decarbonize heavy industry, transport fuels, and power generation,” Moser said in a statement. “Mercuria Holdings and the Manies Group each bring incredible networks and expertise. They will be pivotal as we build green plants from Texas to Southeast Asia, and around the world.”
Uniper CCO Carsten Poppinga added, “We are pleased with First Ammonia’s progress in advancing their Port of Victoria Green Hydrogen Project with compelling economics and configuration aligned with RFNBO requirements.”
