by Green ammonia is produced using renewable energy sources such as solar and wind to power electrolysis for hydrogen production without carbon emissions. It provides a carbon-free solution for hydrogen storage and transportation while being utilized as a clean fuel and feedstock. The product is seen as an important part of the energy transition and the path to decarbonization across many industries.
The global green ammonia market is estimated to be valued at US$ 1.48 Bn in 2024 and is expected to exhibit a CAGR of 70% over the forecast period 2024 to 2031.
Green Ammonia Market Size finds use in various applications across power generation, transportation, industrial feedstock, and others. As a carbon-free solution, it helps reduce GHG emissions from these sectors. It can serve as a zero-carbon marine fuel and biofuel blend. Green ammonia can also be used as a carbon-neutral fertilizer to boost sustainable agriculture. The growing environmental concerns and climate change policies are driving increased investment and adoption of green hydrogen and ammonia technologies globally. However, high production costs remain a challenge due to the utilization of renewable power and electrolysis.
Key Takeaways
Key players: Key players operating in the green ammonia market are Yara International, Siemens Energy, CF Industries, Haldor Topsøe, Nutrien, Air Products and Chemicals, Mitsubishi Heavy Industries, BASF, IHI Corporation, OCI Nitrogen, H2U, Green ammonia Technologies, EnviTec Biogas AG, Linde, thyssenkrupp, Acron Group, BayoTech, Amonix, RWE AG, and Fertiglobe.
Growing demand: The demand for green fuel solutions is growing across marine and ground transportation amid stringent emission norms. Green ammonia is being explored as a potential zero-carbon fuel and hydrogen carrier to power fuel cells and internal combustion engines. Its use as carbon-neutral fertilizer also supports sustainable agricultural practices.
Global expansion: Major green ammonia projects are progressing across regions to establish global production and supply networks. Large electrolyzer manufacturers are partnering with fertilizer and utility players on green hydrogen hubs for domestic use and exports. Countries worldwide are investing in green ammonia production and infrastructure to benefit from the energy transition.
Market Key Trends
One of the key trends shaping the green ammonia market is the increasing number of large-scale projects and production capacities under development. Manufacturers are investing billions to set up giga-scale green ammonia plants paired with renewable power sources like solar and wind farms. This will help lower production costs through economies of scale. Many countries have also announced plans for ports and storage terminals to facilitate global ammonia trade as a hydrogen carrier. Partnerships across industries will be crucial to establish end-to-end green value chains and maximize application opportunities for green ammonia across various hard-to-abate sectors.
Porter’s Analysis
Threat of new entrants: The threat is low due to high capital requirements for building new production facilities and strict environmental regulations that new companies will have to follow.
Bargaining power of buyers: The bargaining power of buyers is moderate as the green ammonia market is highly fragmented with many global and regional players. However, buyers have lesser influence due to increasing applications and growing environmental awareness.
Bargaining power of suppliers: Supplies of raw materials like renewable hydrogen, nitrogen and other inputs have significant influence over producers as fluctuations in supply can impact operations. This gives suppliers moderate bargaining power.
Threat of new substitutes: No close substitutes currently exist for green ammonia. Traditional grey ammonia is mainly produced from fossil fuel feedstock.
Competitive rivalry: Intense as major players are developing large scale production plants and expanding through strategic collaborations & acquisitions to gain greater market share.
Geographical Regions
North America is currently dominating the market in terms of value owing to supportive government policies and initiatives towards production and usage of clean fuels. Countries like the US and Canada are witnessing increasing investments by leading manufacturers.
Asia Pacific is expected to be the fastest growing region during the forecast period owing to the growing focus of countries like China, India, Indonesia and Australia on developing green hydrogen economy. Planned large renewable energy based green ammonia projects will boost the regional market.
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*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
