Blue Ammonia Market

[173 Pages Report] The global Blue ammonia market is estimated to grow from USD 78 million in 2023 to USD 7,664 million by 2030; it is expected to record a CAGR of 62.3% from 2024 to 2030. Blue ammonia demand has increased in recent years as a result of increased government focus on establishing blue ammonia-based economies and investment in blue ammonia infrastructure. The market for blue ammonia is expected to benefit significantly from the increased use of low-emission fuel.

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Blue ammonia Market Dynamics

Driver: Increasing efforts toward empowering hydrogen economy

The use of hydrogen gas as a principal energy source in power generation, transportation, and industrial activities is part of the transition to a hydrogen economy. This development is motivated by the desire to reduce greenhouse gas emissions and reliance on fossil fuels while addressing climate change problems. Blue ammonia is an intriguing fuel for the transition to a hydrogen economy. Because of its minimal carbon emissions and many applications, blue ammonia is gaining traction as a potential clean energy carrier and fuel source. Blue ammonia is produced by absorbing carbon dioxide emissions from industrial operations and using them to synthesis ammonia, resulting in a more sustainable alternative to traditional ammonia manufacturing..

Many countries are investigating the potential of hydrogen as a clean energy carrier and implementing decarbonization strategies in a variety of industries, including transportation and power generation. Blue ammonia has various advantages in the context of the hydrogen economy. It can be efficiently stored and transferred, making it appropriate for long-distance energy delivery. Its adaptability and ability to reduce carbon emissions make it a promising alternative for solving climate change concerns and reaching sustainable energy goals. The production, distribution, and consumption of blue ammonia are predicted to expand as the shift to a hydrogen-based economy gains traction..

Restraint: High cost of blue ammonia

The high cost of blue ammonia is one of the main challenges to its commercialization. Several factors contribute to the high cost of blue ammonia. Some of them are listed below.

The cost of CCS: The cost of CCS is a significant factor in the high cost of blue ammonia. CCS is a relatively new technology, and the cost of CCS is significantly high at present. As the technology matures, the cost of CCS is expected to decrease.

The cost of natural gas: Natural gas is another factor contributing to the high cost of blue ammonia. Natural gas is the most common feedstock for producing ammonia, and the cost of natural gas can vary significantly depending on the location and the market.

The cost of transportation: Transportation is also an important factor contributing to the high cost of blue ammonia. Ammonia is a hazardous substance, and it requires specialized transportation equipment. The cost of transporting ammonia can be significant, especially over long distances.

Opportunities:  Growing demand for blue ammonia to generate power

Various governments are expected to promote blue ammonia programmes in the future years. It is difficult to develop the best net-zero CO2 emissions approach, including the most effective green blue ammonia strategy. There are decarbonization choices for most applications and end uses, and the relative costs and benefits of each solution are expected to fluctuate over time, depending on the rate of innovation and technical developments. As a result, governments from many nations are investigating technology that are most appropriate for their country while avoiding multiple possible hazards, such as locking in slower or less efficient carbon reduction pathways. As a result, a stronger blue ammonia economy is predicted to provide profitable growth opportunities for the blue ammonia storage tanks and transportation markets.

Challenges: Limited awareness about blue ammonia within specific industries

Blue ammonia was a relatively new concept for chemical manufacturers before 2021. Although technology is slowly gaining attention, and several research activities are going on in this field after 2021, it is likely to take some time to gain widespread attention and become well-documented in public sources.

At the R&D stage, blue ammonia, especially when integrated into a carbon capture and storage (CCS) process, involves complex engineering and technological challenges. Companies and organizations involved in blue ammonia research and development may have proprietary rights over certain technical aspects, leading to limited public disclosures. Hence, commercial-scale projects are not widely implemented or publicly reported.

Additionally, detailed information about blue ammonia is more prevalent within specialized industries and research communities involved in ammonia production, hydrogen technology, carbon capture, and energy transition. Thus, knowledge is limited to specific sectors, including transportation and power generation.

Furthermore, regulatory frameworks and policies related to carbon capture and storage, hydrogen and ammonia production processes are country- or region-specific, affecting the dissemination of information on blue ammonia.

Blue ammonia Market Ecosystem

Blue ammonia market has some prominent companies which include well-established, financially stable blue ammonia manufacturers. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Key players in this market include Yara International ASA (Norway), Saudi Arabian Oil Co. (Saudi Arabia), OCI (UK), Ma’aden (Saudi Arabia), and CF Industries Holdings, Inc. (US).

The steam methane reforming, by technology, is expected to be the largest segment during the forecast period.

This report segments the blue ammonia market based on technology into three segment: steam methane reforming, autothermal reforming and gas partial oxidation. Because it is a cost-effective and energy-efficient method of manufacturing pure hydrogen, steam methane reforming leads the market, with the largest market share and the highest growth rate.

By end-use application, the industrial feedstock is expected to be the fastest growing during the forecast period

This report segments the blue ammonia market based on application into four segments: transportation, power generation and industrial feedstock. The industrial feedstock is expected to grow at the fastest rate during the forecast period. The fertilizers industry is among the largest sources of CO2 emissions, and the use of blue ammonia could help decrease these emissions while still meeting the demand for fertilizers. Governments and food companies worldwide are endorsing the demand for eco-friendly fertilizers, which are likely to be gradually adopted to minimize emissions from the agriculture sector.

North America is expected to be the largest region in the blue ammonia market

North America is expected to be the largest blue ammonia market during the forecast period. Blue ammonia is viewed as a viable solution to the climate emergency due to its cleaner production process. It is versatile and finds applications in fuel cells, maritime operations, and fertilizer production. With the increasing demand for blue ammonia, there is a high probability of establishing more projects in North America and across the world. Policies are also enforced to propel research and development and encourage the use of clean fuels for energy. Utilities are going through a significant operational shift, including decentralization, digitalization, and decarbonization. On a large scale, renewable energy is used for power generation.

Key Market Players

The market is dominated by a few major players that have a wide regional presence. The major players in the blue ammonia market include Yara International ASA (Norway), Saudi Arabian Oil Co. (Saudi Arabia), OCI (UK), Ma’aden (Saudi Arabia), and CF Industries Holdings, Inc. (US). Between 2019 and 2023, these companies followed strategies such as contracts, agreements, partnerships, mergers, acquisitions, and expansions to capture a larger share of the market.

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Scope of the Report

This research report categorizes the market by type, portability, application, and region.

On the basis of technology, the blue ammonia market has been segmented as follows:

• Steam methane reforming
• Autothermal reforming
• Gas partial oxidation

On the basis of application, the market has been segmented as follows:

• Transportation
• Power Generation
• Industrial Feedstock

On the basis of region, the market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Rest of the World

Recent Developments

• In June 2023, Yara International ASA and BASF collaborated to develop and build a world-scale low-carbon blue ammonia production facility with carbon capture in the Gulf Coast region of the United States. To meet the expanding worldwide demand for low-carbon ammonia, the companies are investigating the possibility of a facility with a total capacity of 1.2 to 1.4 million tons annually.
• In April 2023, Saudi Aramco successfully transported the first shipment of blue ammonia to Japan through a collaborative effort involving multiple parties across the low-carbon ammonia value chain. SABIC Agri-Nutrients used Aramco's feedstock to generate the ammonia, which was then sold to Fuji Oil Company by Aramco Trading Company. Mitsui O.S.K. Lines was responsible for the liquid's transportation to Japan, where it was transferred to the Sodegaura Refinery for co-fired power generation with technical support from Japan Oil Engineering Co.
• In March 2023, Linde plc, a global industrial gases and engineering company, and OCI, a global producer and distributor of hydrogen-based products, signed a long-term agreement under which Linde will supply clean hydrogen and nitrogen to OCI's new blue ammonia facility under construction in Texas, US.
• In March 2023, Mitsui & Co., Ltd., a prominent global ammonia marketer, and CF Industries Holdings, Inc., the largest ammonia producer, announced their collaborative plan to develop a greenfield ammonia production facility in the United States. The newly established facility will produce blue ammonia using carbon capture and sequestration techniques, reducing carbon emissions by over 60% rather than using traditional ammonia production methods.
• In December 2022, OCI revealed its intention to construct the biggest blue ammonia facility in Texas. OCI entirely owns the project, and it will require an investment of approximately USD 1 billion. This sum includes expenses for enlarged utilities and available land, which will allow for a potential doubling of the facility's capacity to 2.2 mtpa in the future.

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