Addis Energy Secures $8.3M to Transform Ammonia Production
Addis Energy, a company pioneering low-cost, sustainable ammonia production, has announced it has raised $8.3 million in an oversubscribed seed funding round, bringing its total funding to $17.3 million. The round was led by At One Ventures, with participation from existing investors Engine Ventures and Pillar VC.
The funding will accelerate Addis Energy’s mission to revolutionize ammonia production using its AI-aided laboratory of chemical reactors, which simulate subsurface conditions to produce ammonia more efficiently and at lower cost compared to traditional Haber-Bosch methods. The company also plans to expand its operations team and prepare for its first field pilot demonstration.
Addressing the Global Ammonia Challenge
Ammonia is a critical component in the global food supply chain, with approximately 70% of production used for fertilizers. Demand for ammonia is expected to rise by 25% over the next five years, driven by growing agricultural needs. However, traditional ammonia production is highly energy-intensive, consuming roughly 2% of global energy annually.
A significant portion of these costs comes from the consumption of natural gas, which serves both as a feedstock and fuel for the high-temperature, high-pressure reaction central to the Haber-Bosch process. These challenges make conventional ammonia production both expensive and environmentally impactful, highlighting the urgent need for innovative approaches.
A Groundbreaking Approach
Addis Energy is developing a radically new method to replace energy-intensive conventional ammonia production. The company’s approach leverages the chemical potential of ferrous rocks, combining them with water, nitrogen, and a catalyst to drive ammonia synthesis reactions underground. By using the natural heat and pressure of the subsurface, Addis Energy reduces both energy intensity and production costs compared to ammonia derived from natural gas.
This approach is not merely an incremental improvement on Haber-Bosch—it represents a fundamental shift in system design, using the Earth itself as a chemical reactor. By moving the reaction underground, the company can harness existing conditions rather than recreating extreme pressure and heat artificially, unlocking cost and efficiency advantages that conventional processes cannot match.
Scaling Innovation with Funding
“By merging chemical innovation developed out of MIT with hands-on oil and gas industry experience, Addis Energy is enabling energy abundance and affordability while creating new economic opportunities for domestic energy production with zero emissions,” said Michael Alexander, CEO and co-founder of Addis Energy.
The U.S. currently imports about 12% of its domestic ammonia supply, underscoring a timely opportunity to develop a domestic platform for clean fuel and chemical production. The $8.3 million seed funding will help the company scale its novel approach, expand its operations, and become “shovel-ready” for its first pilot project.
Key Achievements Since Launch
Since its launch in January 2025, Addis Energy has made significant progress, including:
- Partnership with Pacific Northwest National Laboratory (PNNL): Collaborating on reactive transport modeling, leveraging PNNL’s expertise in well drilling and in-situ chemical reactions for carbon sequestration and mining.
- Extensive Geological Sampling: Collecting over 600 rock samples from diverse geologies across the U.S. to demonstrate the feasibility and cost advantages of subsurface ammonia production in regions without abundant natural gas.
- Team Expansion: Adding three full-time employees and enlisting advisors with deep energy sector experience, including Douglas Wicks, former Program Director at ARPA-E, and Doug Hollett, former Acting Assistant Secretary for Fossil Energy at the U.S. Department of Energy.
These accomplishments lay a strong foundation for scaling operations and preparing for the company’s first pilot field demonstration.
Industry Perspective
“Addis Energy is not trying to ‘green’ ammonia. They’re rethinking the entire production model,” said Laurie Menoud, Partner at At One Ventures. “Instead of spending billions to recreate extreme pressure and heat above ground, they use what already exists underground. The Earth becomes the reactor. Haber-Bosch is one of the most efficient industrial processes ever built, which is why incremental improvements cannot compete. The only way to win is to change the physics and system architecture, and Addis is doing both. That’s how you achieve a cost curve incumbents simply cannot follow.”
This endorsement highlights the disruptive potential of Addis Energy’s approach and underscores its capability to reshape global ammonia production economics.
About Addis Energy
Addis Energy is on a mission to revolutionize how we feed and fuel our world by unleashing the Earth’s potential for clean ammonia production. The company’s novel technology involves the injection of nitrogen and water into iron-rich rocks, using in-situ subsurface heat and pressure to produce geologic ammonia via a carbon-free and net energy-positive process. Addis Energy is backed by At One Ventures, Engine Ventures, Pillar VC, and Voyager Ventures.
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