Green Ammonia Market
Green Ammonia Market Size, Share & Trends Analysis Report By Technology, By End-use, By Region, And Segment Forecasts, 2023 - 2031
The market for green ammonia, which had a value of USD 34 million in 2022, is anticipated to increase at compound annual growth rate (CAGR) of 70.75% from 2023 to 2031, reaching USD 4865 million. The green ammonia market is currently in its early phases of development. It seems that more research and development efforts are being devoted to the manufacturing of green ammonia as governmental laws and public awareness about carbon dioxide emissions and the preservation of the health of the atmosphere increase.By lowering the dependency on fossil fuels and helping to lower greenhouse gas emissions, green ammonia can also have a big impact. Green ammonia market is created by electrolyzing water to create hydrogen, which is then converted into ammonia using hydroelectric, solar, wind, and other renewable energy sources. Agriculture, energy storage, and the ocean are just a few of the applications of green ammonium. The market is expected to grow as a result of the rising demand for green ammonia in a number of end-use industries, including fertilizer, power generation, transportation, and others. The market is expected to grow as a result of increased demand for green ammonia in industrial feedstock products such as pharmaceutical goods.
Market Growth of the Green Ammonia Market
Demand is expected to rise in the coming years as a result of the rising popularity of green ammonia market and a growing understanding of the significance of generating clean energy and reducing carbon footprints. Increasing demand for the product as marine fuel and shipping in the transportation sector due to its higher air quality and lack of carbon and sulfur traces is another factor projected to contribute to market expansion. Green ammonia is produced when hydrogen from water and nitrogen from the air are mixed. It can be used in fuel cells, gas turbines, internal combustion engines, generators, and industrial burners and is an efficient source of heat and electricity, particularly for maritime transportation.
The ideal alternative given the pressure on the shipping industry to cut carbon emissions is green ammonia, which has a lower volumetric energy density than other fuels and can therefore be stored more easily. The favorable laws and regulations governing low-carbon emissions as well as rising fuel demand from the maritime industry are also boosting market expansion.
Green Ammonia Market Restraining Factors
The COVID-19 pandemic has had a negative influence on every industry, including green ammonia. Many governments have enacted statewide lockdowns to prevent the sickness from spreading. As a result, there are no restrictions on how easily people and goods can migrate. As a result, due to a lack of raw materials and manpower, some enterprises were compelled to delay or discontinue the construction of green ammonia manufacturing plants. Delays in the construction of production facilities have hurt the market for green ammonia.
Green Ammonia Market Opportunities
A gas turbine that can only run on green ammonia is being developed by Mitsubishi. The heat breakdown of the green ammonia results in trace amounts of ammonia, hydrogen, and nitrogen being used by the gas turbine. Due to the growing number of green ammonia market applications over those for conventional ammonia that are currently being used, it is anticipated that the market for green ammonia will grow dramatically. In order to offer the shipping industry an alternative marine fuel and reduce greenhouse gas emissions, a number of significant businesses are exploring the use of green ammonia as a marine fuel and investing in the construction of a green ammonia supply infrastructure. Over the projected period, this is anticipated to drive the green ammonia market.
Driving Factors for the Green Ammonia Market
Ammonia, which is the second-most extensively manufactured chemical good in the world, is mostly used as a fertilizer in agriculture. In addition, it has been discovered that green ammonia, in addition to its current principal usage in the fertilizer sector, has the potential to be employed in a number of other applications as a result of expanding technological improvements and developments. To give the shipping industry alternative marine fuel and reduce greenhouse gas emissions, a number of significant firms are investigating the use of green ammonia as a marine fuel and investing in the creation of green ammonia supply infrastructure. Over the forecast period, it is expected that this will fuel the green ammonia market.
The ideal alternative given the pressure on the shipping industry to cut carbon emissions is green ammonia, which has a lower volumetric energy density than other fuels and can therefore be stored more easily. The favorable laws and regulations governing low-carbon emissions as well as rising fuel demand from the maritime industry are also boosting market expansion.
Major Market Players for the Green Ammonia Market
BASF SE (Germany), CF Industries Holdings, In, Dyno Nobel, Electrochaea (Germany), Enaex Energy, Enapter (Italy), Eneus Energy Limited, ACME Group, Fertiglobe plc, Fusion-Fuel, Green Hydrogen Systems (Denmark), Greenfield Nitrogen LLC, H2U Technologies, Inc., Air Products Inc., Aker Clean Hydrogen, AquaHydrex (US), Ballance Agri-Nutrients, ENGIE (France), EXYTRON (Germany) these are some of the prominent market players for the Green Ammonia Market.
Regional Analysis of the Green Ammonia Market
The green ammonia market is dominated by Europe, which is anticipated to expand at a CAGR of 35.6% over the forecast period. Modern green ammonia market technologies are being produced and adopted by European countries. Due to the trend toward employing environmentally friendly chemicals, it is projected that the green ammonia sector in the area would expand. Existing ammonia facilities in Europe rely primarily on natural gas for their ammonia production. The electrolysis technology will most certainly replace the 7% that is currently produced by comparably ineffective oil-based facilities.
A CAGR of 145.80% is predicted for the Asia Pacific market by 2030. Government regulations and programmes aimed at lowering carbon emissions and developing green energy are to blame for this. As an illustration, the Indian government has offered subsidies to promote the usage of electric vehicles there. Instead of using natural gas as the main feedstock, green ammonia uses green hydrogen as the primary raw material, which is produced using renewable energy and water. In Europe, the geopolitical unrest in Ukraine has led to a rise in gas costs, which has made conventional ammonia production more expensive than green ammonia production at the moment.
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Estimated Market Value (2022) |
US$ 34 Mn |
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Projected Market Value (2031) |
US$ 4865 Mn |
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Anticipated Growth Rate (2023-2031) |
70.75% |
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Forecast Period |
2023-2031 |
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Market Analysis |
US$ Million for Value and Kilo Tons for Volume |
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Key Countries Covered |
U.S., Canada, Brazil, Mexico, Germany, Italy, France, U.K., Spain, BENELUX, Russia, China, Japan, South Korea, India, ASEAN, ANZ, GCC Countries, Turkey, Northern Africa, South Africa |
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Key Segments Covered |
Technology, End Use, and Region |
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Key Companies Profiled |
BASF SE (Germany), CF Industries Holdings, In, Dyno Nobel, Electrochaea (Germany), Enaex Energy, Enapter (Italy), Eneus Energy Limited, ACME Group, Fertiglobe plc, Fusion-Fuel, Green Hydrogen Systems (Denmark), Greenfield Nitrogen LLC, H2U Technologies, Inc., Air Products Inc., Aker Clean Hydrogen, AquaHydrex (US), Ballance Agri-Nutrients, ENGIE (France), EXYTRON (Germany) |
Responsibilities & Reports Coverage
Technological Insight
Alkaline water electrolysis was predicted to hold the largest market share in the Green Ammonia sector during the forecasted timeframe. Reverse osmosis water electrophoresis is the most popular, dependable, and traditional electrolysis technique. A watery, alkaline solution containing sodium or potassium ions serves as the electrode. It is a very recent economic innovation. During the anticipated timeframe, the solid oxide electrolysis technology is anticipated to increase at the fastest rate. With the use of this technology, green hydrogen may be produced from renewable energy sources and then converted into green ammonia market. To improve performance and reduce costs at the system, cell, and stack levels, technology companies are consistently stepping up their R&D efforts.
End User Insight
The industry for green ammonia is expected to have the largest market share in 2021, according to predictions. Green ammonia market is the healthier variety of ammonia gas produced from renewable resources. From excess renewable energy produced in remote areas, electrolytes could be used to produce fuel ammonia, which can act as a renewable fuel for electricity generation. Globally, there is a growing deployment of renewable energy sources. This might be a result of expanding government measures to support agriculture that produces no carbon emissions at all, as well as rising support for green ammonia in the production of environmentally friendly fertilizers.
Recent Developments in the field of the Green Ammonia Market
- In November 2021, Green Energy and Haldor Topsoe announced a Memorandum of Agreement creating a partnership to create effective and long-lasting solutions for the production of environmentally friendly ammonia inside Iceland.
- In order to electrify and decarbonize the Heroya ammonia factory and create a new industry for the Norwegian economy, the companies Yara Worldwide Aker Fresh Hydrogen, Stat kraft AS, and ASA founded a new firm called HEGRA in August 2021.
- Solar energy producer ACME Company from India signed a contract with Tatweer of Oman in March 2021 to open a green ammonia production facility in Duqm, Oman.
- According to the planning documents published in February 2021 by Copenhagen Organization Associates and A.P. Moller-Maersk, Denmark would house the largest ammonia manufacturing facility in all of Europe.
Market Segmentation
By Technology
- Alkaline Water Electrolysis
- Proton Exchange Membrane
- Solid Oxide Electrolysis
By Sales Channel
- Direct Sale
- Indirect Sale
By End User
- Transportation
- Power Generation
- Industrial Feedstock
- Others
By Region
North America
- U.S.
- Canada
- Mexico
Europe
- Germany
- U.K.
- Spain
- Russia
- The Netherlands
Asia Pacific
- China
- India
- Japan
- Australia
Central & South America
- Brazil
- Chile
- Argentina
- Peru
Middle East & Africa
- Saudi Arabia
- Zimbabwe
- Morocco
- South Africa
FAQ’s
- How big is the market for green ammonia
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