Green Ammonia Market

Green Ammonia Market Size, Share & Trends Analysis Report By Technology, By End-use, By Region, And Segment Forecasts, 2023 - 2031

Chemical & Material | November 2022 | Report ID: EMR003 | Pages: 301

The market for green ammonia, which had a value of USD 0.26 billion in 2022, is anticipated to increase at compound annual growth rate (CAGR) of 78.8% from 2023 to 2031, reaching USD 48.56 billion. 

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 : REPORT SCOPE & SEGMENTATION

Report Attribute

Details

Estimated Market Value (2023)

0.26 Bn

Projected Market Value (2031)

48.56 Bn

Base Year

2023

Forecast Years

2023 - 2031

Scope of the Report

Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment- By Product, By Application, & Region

Segments Covered

By Technology, By End Use, and By Region

Forecast Units

Value (USD Billion or Million), and Volume (Units)

Quantitative Units

Revenue in USD million/billion and CAGR from 2024 to 2032

Regions Covered

North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and the Rest of World

Countries Covered

U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others

Report Coverage

Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.

Delivery Format

Delivered as an attached PDF and Excel through email, according to the purchase option.

 

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,
  • 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.

 

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

Research Methodology

Our research methodology has always been the key differentiating reason which sets us apart in comparison from the competing organizations in the industry. Our organization believes in consistency along with quality and establishing a new level with every new report we generate; our methods are acclaimed and the data/information inside the report is coveted. Our research methodology involves a combination of primary and secondary research methods. Data procurement is one of the most extensive stages in our research process. Our organization helps in assisting the clients to find the opportunities by examining the market across the globe coupled with providing economic statistics for each and every region.  The reports generated and published are based on primary & secondary research. In secondary research, we gather data for global Market through white papers, case studies, blogs, reference customers, news, articles, press releases, white papers, and research studies. We also have our paid data applications which includes hoovers, Bloomberg business week, Avention, and others.

Data Collection

Data collection is the process of gathering, measuring, and analyzing accurate and relevant data from a variety of sources to analyze market and forecast trends. Raw market data is obtained on a broad front. Data is continuously extracted and filtered to ensure only validated and authenticated sources are considered. Data is mined from a varied host of sources including secondary and primary sources.

Primary Research

After the secondary research process, we initiate the primary research phase in which we interact with companies operating within the market space. We interact with related industries to understand the factors that can drive or hamper a market. Exhaustive primary interviews are conducted. Various sources from both the supply and demand sides are interviewed to obtain qualitative and quantitative information for a report which includes suppliers, product providers, domain experts, CEOs, vice presidents, marketing & sales directors, Type & innovation directors, and related key executives from various key companies to ensure a holistic and unbiased picture of the market. 

Secondary Research

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Top-Down Approach & Bottom-Up Approach

In the top – down approach, the Global Batteries for Solar Energy Storage Market was further divided into various segments on the basis of the percentage share of each segment. This approach helped in arriving at the market size of each segment globally. The segments market size was further broken down in the regional market size of each segment and sub-segments. The sub-segments were further broken down to country level market. The market size arrived using this approach was then crosschecked with the market size arrived by using bottom-up approach.

In the bottom-up approach, we arrived at the country market size by identifying the revenues and market shares of the key market players. The country market sizes then were added up to arrive at regional market size of the decorated apparel, which eventually added up to arrive at global market size.

This is one of the most reliable methods as the information is directly obtained from the key players in the market and is based on the primary interviews from the key opinion leaders associated with the firms considered in the research. Furthermore, the data obtained from the company sources and the primary respondents was validated through secondary sources including government publications and Bloomberg.

Market Analysis & size Estimation

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Quality Checking & Final Review

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Frequently Asked Questions

Green Ammonia refers to ammonia produced through a process that minimizes or eliminates carbon emissions, typically by utilizing renewable energy sources and adopting sustainable production methods. Unlike conventional ammonia production, which often relies on fossil fuels and results in significant carbon emissions, green ammonia is aligned with environmentally friendly practices, contributing to a more sustainable and low-carbon future.
The growth of the Green Ammonia Market is primarily driven by the increasing global focus on decarbonization and the transition to renewable energy. Industries such as agriculture, where ammonia is a key component in fertilizers, are seeking sustainable alternatives. Additionally, the demand for green ammonia is bolstered by its potential applications in energy storage and as a clean fuel for transportation.
Green Ammonia can be produced through various methods, including the Haber-Bosch process, which is traditionally used for ammonia production but can be modified for green production. Other methods involve electrochemical processes, such as electrolysis, where water is split into hydrogen and oxygen using renewable electricity, and the hydrogen is then combined with nitrogen to form ammonia.
Green Ammonia is anticipated to have a substantial impact on industries such as agriculture, where it can be used as a sustainable fertilizer, addressing concerns about the environmental impact of conventional fertilizers. Additionally, the transportation sector is exploring green ammonia as a clean fuel, especially in maritime applications, contributing to efforts to decarbonize the shipping industry.
Challenges include the scalability of green ammonia production, cost competitiveness with conventional methods, and the development of efficient technologies. Ongoing research and investments in technological advancements, along with supportive policies promoting sustainable practices, are critical in addressing these challenges and fostering the growth of the Green Ammonia Market.