Green Ammonia Market

[272 Pages Report] The worldwide green ammonia market is expected to be worth USD 0.3 billion in 2024 and reach USD 6.2 billion by 2030, expanding at a CAGR of 66.0%. The market is being driven by demand from green chemical makers and the power-generating industry. Similarly, the global push for sustainable and low-carbon solutions will also propel the market growth.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Green Ammonia Market Dynamics

Driver: Rising agricultural productivity has led to an increase in the need for environmentally friendly fertilizers.

Fertilizer consumption is rising as worldwide agricultural production grows at a fast pace. According to the Food and Agriculture Organization, global fertilizer usage increased by 5.4% between 2021 and 2022. Furthermore, demand is likely to rise in the coming years, driven by growing agricultural production in Asia and Africa. The extensive use of chemical fertilizers and pesticides has significantly degraded soil conditions across the world. Because there is a great demand for agricultural methods that improve soil quality and minimize carbon emissions, the market for organic fertilizers is rapidly rising. This drives chemical manufacturers to transition to sustainable and environmentally friendly goods like green ammonia. Thus, green ammonia sales will rise since there is a growing need for environmentally friendly fertilizers that promote soil health and prevent pollution. With the growing need for fertilizers, ammonia use to make fertilizers is expected to rise significantly in coming years.

Restraints: High initial cost to establish a green ammonia plant

The capital-intensive nature of green ammonia plants is the primary impediment to the green ammonia market's expansion. A modern ammonia plant typically lasts between 15 and 20 years. The CAPEX expenses for each tonne of ammonia generated by a greenfield project generally vary between USD 1,300 and 2,000. However, green ammonia is 1.5 times more expensive than natural gas-powered ammonia factories. Unless the cost of renewable energy generation and electrolyzers falls further, general ammonia manufacturers would be unable to transition from traditional ammonia production to green ammonia production, stifling market expansion.

Opportunities: Potential of ammonia as a marine fuel

The shipping industry accounts for 3% of global greenhouse gas emissions, mostly due to the usage of diesel and high-sulfur fuel. Heavy fuel oil, generated as a byproduct of crude oil distillation, is the most common type of bunker oil used by ships. When this oil is coupled with a high sulfur content and burnt in the ship's engine, poisonous SOx are discharged into the air.

However, the marine industry must minimize emissions by converting to greener energy sources. The International Maritime Organization (IMO) 2020 standards have reduced the sulfur limit in carrying oil for use onboard ships operating outside of defined emission control areas to 0.5% m/m (mass by mass). This will result in a shift to higher-quality marine fuels, creating potential for companies in the green ammonia industry.

Challenges: Lack of Knowledge about green ammonia among chemical manufacturers

The development of green ammonia technology is still in its early phases. Electrochemical synthesis, photochemical synthesis, and chemical looping are ways for producing ammonia directly from water and nitrogen. Such techniques, however, present significant technological challenges that need time and R&D expenses. The vast majority of ammonia producers continue to use conventional procedures.

The main difficulty with green ammonia is that chemical makers do not have enough knowledge about it. The major chemical industries in China, Japan, and Russia continue to generate ammonia with natural gas steam methanation technology.

Green Ammonia Market Ecosystem

In this market, prominent companies stand out as well-established and financially stable providers of Green Ammonia. With years of experience, these companies boast a diverse product portfolio, cutting-edge technologies, and robust global sales and marketing networks. Their proven track record in the industry positions them as reliable and trusted partners for customers seeking Green Ammonias. These companies have demonstrated their ability to adapt to market dynamics and consistently deliver high-quality products and services, making them leaders in meeting the demands of the oil and gas sector. Prominent companies in this market include Siemens Energy (Germany), ACME Group (India), ThyssenKrupp AG (Germany), NEL ASA (Norway), and Yara (Norway) among others.

The SOEC Solid Oxide Electrolysis, by technology, is expected to be the fastest growing during the forecast period.

SOECs may include waste heat from industrial operations and other high-temperature sources. This integration increases total system efficiency and decreases the amount of energy required for hydrogen generation, making SOE a more appealing alternative for green ammonia production. In addition, because of its better efficiency, SOE technology uses less power per unit of hydrogen generated than low-temperature electrolysis techniques. This reduction in power use results in lower operational expenses, especially in areas with high electricity rates. Furthermore, SOE technology may be efficiently used with renewable energy sources like solar and wind to create green hydrogen and then green ammonia. The capacity to run efficiently with fluctuating renewable energy inputs aids in the transition to a sustainable energy system.

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

Industries are increasingly concerned with minimizing their carbon footprint and achieving legal requirements for lower emissions. Green ammonia, generated from renewable energy sources, is a carbon-neutral alternative to standard ammonia, making it an appealing feedstock for a variety of industrial chemical processes, including the manufacture of fertilizers, explosives, and polymers. The agriculture industry is a significant user of ammonia-based fertilizers. With increasing concerns about environmental sustainability and soil health, there is a movement to use green ammonia as a feedstock for making eco-friendly fertilizers. This move reduces agriculture's environmental effect and promotes sustainable farming techniques. Furthermore, green ammonia may be utilized to store extra renewable energy, which can later be transformed back into electricity or used as a feedstock in industrial operations.  This dual functionality facilitates energy storage solutions and grid stability, making green ammonia an appealing alternative for enterprises seeking to incorporate renewable energy into their processes.

“Europe: The largest region in the green ammonia market.”

Europe has made enormous investments in the infrastructure required to produce, store, and distribute green ammonia. The construction of pipelines, terminals, and storage facilities improves the scalability and logistics of green ammonia, allowing it to be widely adopted throughout the area. Furthermore, European nations have made significant pledges to increase the percentage of renewable energy in their energy mix. The availability of wind and solar resources in Europe offers a solid foundation for the creation of green hydrogen, which is subsequently converted into green ammonia. The combination of green ammonia with renewable energy sources helps to stabilize the system and store extra energy. Similarly, rising public knowledge and support for renewable energy and climate action are driving higher demand for green ammonia. The general public and stakeholders are campaigning for greener energy options, encouraging businesses and governments to incorporate green ammonia into their sustainability initiatives.

Key Market Players

The Green Ammonia market is dominated by a few major players that have a wide regional presence. The major players in the Green Ammonia market include Siemens Energy (Germany) , ACME (India), ThyssenKrupp AG (Germany), Nel ASA (Norway) , Iberdrola, S.A. (Spain), and Yara (Norway) among others. Between 2020 and 2024, Strategies such as new product launches, contracts, agreements, acquisitions, and expansions are followed by these companies to capture a larger share of the Green Ammonia market.

Want to explore hidden markets that can drive new revenue in Green Ammonia Market?

Unlock Insights

Click on image to enlarge

Scope of the Report

This research report categorizes the green ammonia market based on technology, capacity end user, and region.

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

• Alkaline Water Electrolysis
• Proton Exchange Membrane
• Solid Oxide Electrolysis

On the basis of capacity, the green ammonia market has been segmented as follows:

• High
• Medium
• Low

On the basis of end-use, the green ammonia market has been segmented as follows:

• Transportation
• Power Generation
• Industrial Feedstock

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

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

Recent Developments

• In May, 2024 Cepsa has chosen thyssenkrupp nucera as the preferred supplier for a 300-megawatt electrolyzer to be used in its new green hydrogen plant in Spain. This agreement was announced at the World Hydrogen Summit in Rotterdam. The electrolyzer will play a crucial role in the production of green hydrogen, supporting Cepsa's efforts to advance sustainable energy solutions
• In October, 2023, DAI Infrastruktur has now joined forces with compatriot technology major Siemens Energy to develop its green ammonia project in East Port Said, Egypt. DAI’s project named Ra is planned to have a total production capacity of 2 million tons per annum (mtpa) of green ammonia, with an estimated start in 2028. Siemens will supply electrolysers, auxiliary plant systems and other equipment for the “hydrogen island” section of Project Ra. Both organisations will collaborate on engineering services during the project development stage.
• In September 2023, OPAL Fuels signed a joint venture with South Jersey Industries, an energy infrastructure holding company, to develop, construct, own, and operate RNG facilities.
• 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):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst