Green Ammonia Market by Technology (Alkaline Water Electrolysis (AWE), Proton Exchange Membrane (PEM) Electrolysis, Solid Oxide Electrolysis), End-Use Application (Transportation, Power Generation, Industrial Feedstock) & Region - Global Forecast to 2030
The global green ammonia market size was valued at $0.3 billion in 2023 and to reach $17.9 billion in 2030, growing at a compound annual growth rate (CAGR) of 72.9% from 2023 to 2030.
Green ammonia refers to the production of renewable and carbon-free ammonia. It is produced by generating energy from solar/wind/hydropower, which is then fed into an electrolyzer. It extracts hydrogen from water, while nitrogen is removed from the air using an air separation unit. In this process, hydrogen and nitrogen react at high temperatures and pressures to produce ammonia. Rising investment in renewable energy projects and a decline in power generation cost is expected to drive the green ammonia market.
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Green Ammonia Market Dynamics
Driver: Increased need for eco-friendly fertilizers with rising agricultural production
The demand for fertilizers is increasing owing to the rapid increase in global agricultural production. According to the Food and Agriculture Organization, total fertilizer consumption from 2021 to 2022 grew by 5.4% year-on-year. Also, the demand is expected to increase in the coming years, driven by the increased agricultural production in Asia and Africa. With the widespread use of chemical fertilizers and pesticides, soil conditions across the world have substantially deteriorated. As there is a high demand for agricultural technologies that sustain soil quality and reduce carbon pollution, the market for organic fertilizers is expanding significantly. This forces chemical producers to switch to sustainable and green products such as green ammonia. Thus, green ammonia sales will increase due to the rising demand for eco-friendly fertilizers that improve soil health and reduce contamination. With the increasing demand for fertilizers, ammonia consumption to manufacture fertilizers is likely to increase substantially in the coming years.
Restraints: High initial cost to set up green ammonia plant
The capital-intensive nature of green ammonia plants is the main barrier preventing the market for green ammonia from expanding. The typical lifespan of a modern ammonia plant is 15 to 20 years. For each tonne of ammonia produced, a greenfield project's CAPEX costs typically range from USD 1,300 to 2,000. Green ammonia, however, is 1.5 times more expensive than ammonia facilities powered by natural gas. Unless the cost of renewable energy generation and electrolyzers decreases further, it is not feasible for general ammonia producers to switch from traditional ammonia production to green ammonia production, hampering the market's growth.
Opportunities: Growing demand for biofuels
Global biofuel demand has been increasing gradually due to the rising focus of countries on achieving net zero-emission targets. According to Statistical Review of World Energy 2022, the total biofuel consumption in 2021 was 1,837 thousand barrels of oil equivalent per day worldwide. Biofuels reduce greenhouse emissions by up to 65%. The demand for suitable biofuel crops is rising due to the increasing biofuel production, supporting the agricultural industry. Biofuels are less expensive for buildings, companies, and automobiles.
Several countries worldwide are trying to move away from dependence on oil imports. According to the Renewable Energy Directive (RED), the European Union had set a goal of covering at least 20% of its total energy demand from renewable sources by 2020. Similarly, the US Renewable Fuels Standards Program was created to reduce greenhouse gas emissions and expand the US renewable fuel sector. Biofuels are the most efficient alternative to fossil fuels because they can be produced locally.
Challenges: Increasing focus on building a hydrogen-based economy
Applications of hydrogen in energy production are growing. It can be used as a domestic fuel and even to drive automobiles and buses. To improve the use of hydrogen, governments and academic institutions across the world are currently funding applied research, development, and innovation. These investments will facilitate the growth of a robust hydrogen-based economy, as well as energy security and resilience. Several government funding programs support hydrogen-related projects. Listed below are some such projects: The UK government, in March 2017, launched the Hydrogen for Transport Programme (HTP) to support the development of hydrogen for transport until 2020. The Hydrogen for Transport Programme (HTP) is intended to provide up to USD 29.63 million (GBP 23 million) to increase the uptake of hydrogen fuel cell vehicles and develop the UK hydrogen refueling infrastructure.
Green Ammonia Market Trends
By technology, alkaline water electrolysis segment to witness largest market share during forecast period
The alkaline water electrolysis segment is expected to witness the largest market share from 2023 to 2030, as it witnesses higher demand for green hydrogen as a transportation fuel in the Asia Pacific, which drives the growth of the alkaline water electrolysis segment during the forecasted period.
By application, power generation segment to witness fastest CAGR during forecast period
By application, transportation segment will be the second fastest growing segment during the forecast period. The segment's growth is attributed to increasing focus towards using green fuel and achieving net zero CO2 emissions.
Europe is expected to be the largest market during the forecast period.
Europe is expected to be the largest market share in the green ammonia market during the forecast period. The growth of the Europe market is characterized by the increase in the production of green electricity for small-scale applications in rural areas and green fuel due to higher demand for fuel cell vehicles.
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Key Market Players
The major players in the global green ammonia market are Siemens Energy (Germany), NEL ASA (Norway), thyssenKrupp AG (Germany), ITM Power (UK), YARA International (Norway), BASF SE (Germany).
Green Ammonia Market Report Scope
Report Attributes |
Details |
Market size: |
USD 0.3 billion in 2023 to USD 17.9 billion by 2030 |
Growth Rate: |
72.9% |
Largest Market: |
Europe |
Market Dynamics: |
Drivers, Restraints, Opportunities & Challenges |
Forecast Period: |
2023-2030 |
Forecast Units: |
Value (USD Billion) |
Report Coverage: |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
Segments Covered: |
Green Ammonia Market by technology, application and Region |
Geographies Covered: |
Europe, North America, Asia Pacific, Latin America, and Middle East and Africa |
Report Highlights:
|
Updated financial information / product portfolio of players |
Key Market Opportunities: |
Increasing focus on building hydrogen-based economy |
Key Market Drivers: |
Need to store renewable energy for longer term |
This research report categorizes the market by technology, application and region.
On the basis of by gasifier technology, the green ammonia market has been segmented as follows:
- Alkaline Water Electrolysis
- Proton Exchange Membrane Electrolysis
- Solid Oxide Electrolysis
On the basis of by application, the market has been segmented as follows:
- Power Generation
- Transportation
- Industrial Feedstocks
On the basis of region, the market has been segmented as follows:
- Europe
- Asia Pacific
- North America
- Rest of the World
Recent Developments
- In November 2022, Siemens Energy partnered with Fortescue Future Industries, a green hydrogen manufacturing company and GeoPura, which provides renewable energy & EV charging, & emission-free electricity, to develop an ammonia cracker prototype designed to produce green hydrogen at an industrial scale and help tackle climate change and reduce carbon emissions. The prototype would use ammonia to deliver 200 kg of hydrogen a day—enough to power around 5–10 hydrogen fuel cell electric buses.
- In September 2022, Uniper SE and Vesta signed a Memorandum of Understanding to expand an existing storage facility to build the first green ammonia hub named Greenpoint Valley in Northwest Europe. Uniper SE seeks to establish a presence in developing green ammonia and hydrogen sectors in Northwest Europe. The development of green ammonia and hydrogen markets will help boost European supply security.
- In August 2022, Uniper SE signed a Memorandum of Understanding with EverWind Fuels to purchase green ammonia from EverWind’s initial production facility in Nova Scotia. EverWind and Uniper intend to negotiate a binding offtake agreement for 500,000 tonnes of green ammonia per annum.
- In January 2022, ITM Power contracted with YARA International, an EPC company. ITM Power provided a 24 MW electrolyzer to YARA International, which was agreed to be installed at a site operated by Yara Norge AS.
Frequently Asked Questions (FAQ):
What is the current size of the green ammonia market?
The global green ammonia market size is estimated at USD 388 million in 2023 and is expected to reach USD 17900 million by 2030.
What are the major drivers for the green ammonia market?
Need to store renewable energy for longer term
Which is the fastest-growing region during the forecasted period in the green ammonia market?
The Asia Pacific green ammonia market is estimated to be the second largest and the fastest-growing region, during the forecast period.
Which is the fastest-growing segment, by technology during the forecasted period in the green ammonia market?
The alkaline water electrolysis segment is estimated to be the fastest-growing segment, by application.
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This study involved four major activities in estimating the current size of the green ammonia market. Exhaustive secondary research was done to collect information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and market sizing with industry experts across the value chain through rigorous primary research. Both top-down and bottom-up approaches were used to estimate the total market size. The market breakdown and data triangulation techniques were employed to estimate the market size of the segments and the corresponding subsegments.
Secondary Research
This research study involved the use of extensive secondary sources, directories, and databases such as industry publications, several newspaper articles, Statista Industry Journal, and UNESCO Institute of Statistics to identify and collect information useful for a technical, market-oriented, and commercial study of the utility communication market. The other secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, manufacturer associations, trade directories, and databases.
Primary Research
Primary sources included several industry experts from core and related industries, preferred suppliers, manufacturers, service providers, technology developers, and organizations related to all the segments of the nuclear industry. In-depth interviews were conducted with various primary respondents, including key industry participants, subject matter experts (SME), C-level executives of the key market players, and industry consultants, among other experts, to obtain and verify qualitative and quantitative information, as well as to assess the prospects of the market. The breakdown of primary respondents is given below:
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Market Size Estimation
Both top-down and bottom-up approaches have been used to estimate and validate the size of the global green ammonia market and its dependent submarkets. These methods were also extensively used to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and market have been identified through extensive secondary research, and their market shares in the respective regions have been determined through both primary and secondary research.
- The industry’s supply chain and market size, in terms of value, have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Global Green ammonia Market Size: Bottom-Up Approach
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Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. To complete the entire market engineering process and arrive at the exact statistics of each market segment and subsegment, the data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides in the market.
Objectives of the Study
- To forecast and describe the green ammonia market size, by source, gasifier technology, application, and region, in terms of value
- To provide detailed information regarding the major drivers, restraints, opportunities, and challenges influencing the growth of the market
- To estimate the size of the market in terms of value
- To strategically analyze micro markets with respect to individual growth trends, prospects, future expansions, and contributions to the overall market
- To provide post-pandemic estimation for the market and analyze the impact of the pandemic on the overall market and value chain
- To forecast the growth of the market with respect to four major regions, namely, North America, Europe, Asia Pacific, and Rest of the World
- To analyze market opportunities for stakeholders and the competitive landscape for market leaders
- To strategically profile key players and comprehensively analyze their respective market shares and core competencies
- To analyze competitive developments such as investments & expansions, contracts & agreements, and joint ventures & collaborations in the market
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to your specific needs. The following customization options are available for the report:
Company Information
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analysis and profiling of additional market players
Growth opportunities and latent adjacency in Green Ammonia Market