Green Ammonia Market by Technology (Alkaline Water Electrolysis (AWE), Proton Exchange Membrane (PEM), SOE), End-Use Application (Transportation, Power Generation, Industrial Feedstock (Industrial, Fertilizers)), Region - Global Forecast & Trends to 2030
[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.
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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.
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Report Metric |
Details |
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Market size available for years |
2019–2030 |
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Base year considered |
2023 |
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Forecast period |
2024–2030 |
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Forecast units |
Value (USD Million) and Volume (Million Tons) |
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Segments Covered |
Green Ammonia Market by technology, by capacity, by end-use, and region. |
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Geographies covered |
Europe, Asia Pacific, North America, and Rest of the World |
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Companies covered |
ACME Group (India), Yara (Norway), Siemens Energy (Germany), First Ammonia (US), Starfire Energy (US), ENGIE (France), CF Industries Holdings, Inc. (US), Uniper SE (Germany), Greenko Group (India), BASF SE (Germany), Allied Green Ammonia Pty Ltd (Australia), ThyssenKrupp AG (Germany), Nel ASA (Norway), ITM Power (UK), Green Hydrogen Systems (Denmark), McPhy Energy S.A. (France), Cummins Inc. (US), Enapter S.r.l. (Italy), Topsoe (Denmark), FulePositive Corporation (Canada), Hygenco (India), LONGi (China), Hiringa Energy Ltd (New Zealand), Iberdrola, S.A. (Spain), and CEEC Global Ltd (China) |
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):
What is the current size of the green ammonia market?
The current market size of the sustainable fuel market is USD 0.1 billion in 2023.
What are the major drivers for the green ammonia market?
Growing emphasis on reducing carbon emissions and transition towards renewable energy has emerged as some of major drivers for the green ammonia market.
Which is the largest region during the forecasted period in the green ammonia market?
Europe is expected to dominate the green ammonia market between 2024–2030, followed by Asia Pacific and rest of the world.
Which is the largest segment, by technology, during the forecasted period in the green ammonia market?
The alkaline water electrolysis segment is expected to be the largest market during the forecast period. Alkaline water electrolysis can be effectively integrated with renewable energy sources such as wind and solar power. This compatibility allows for the production of green hydrogen, aligning with global efforts to reduce carbon emissions and transition to sustainable energy sources.
Which is the fastest growing segment, by end-use application, during the forecasted period in the green ammonia market?
Power Generation is expected to be the fastest-growing market during the forecast period. Ammonia may be used directly as a fuel in thermal power plants or in fuel cells to produce energy. Its usage as a clean fuel lowers greenhouse gas emissions as compared to regular fossil fuels, making it a desirable alternative for power generation. .
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The study involved major activities in estimating the current size of the green ammonia market. Exhaustive secondary research was done to collect information on the peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of the segments and subsegments.
Secondary Research
This research study included secondary sources such as company annual reports, press announcements, and investor presentations, as well as white papers, certified publications, articles by renowned writers, and databases of numerous firms and associations. Secondary research has primarily been used to obtain key information about the industry's supply chain, monetary chain, total pool of key players, market classification and segmentation based on industry trends down to the lowest level, regional markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
Primary research has been conducted to identify segments, industry trends, and the competitive landscape of the green ammonia market. In the primary research process, various primary sources from both the supply and demand sides have been interviewed to obtain qualitative and quantitative information for this report. Primary sources from the supply side include industry experts such as CEOs, vice presidents, marketing directors, technology and innovation directors, and related key executives from various companies and organizations operating in the green ammonia market. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information. Following is the breakdown of primary respondents:
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Market Size Estimation
Top-down and bottom-up approaches have been used to estimate and validate the size of the green ammonia market and its dependent submarkets. Key players in the market have been identified through secondary research, and their market share in the respective regions has been obtained through both primary and secondary research. The research methodology includes the study of the annual and financial reports of the top market players and interviews with industry experts, such as chief executive officers, vice presidents, directors, sales managers, and marketing executives, to gain key quantitative and qualitative insights related to the green ammonia market. The research methodology used to estimate the market size includes the following:
- Extensive secondary research was used to identify the major players in the industry and market, and their market share was established using both primary and secondary research.
- Both primary and secondary research methods were used to assess the industry's value chain and market size.
- All percentage shares, splits, and breakdowns were obtained using secondary sources and validated by primary sources.
Green Ammonia Market Size: Top-Down Approach
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Green Ammonia Market Size: Bottom-Up Approach
Data Triangulation
After arriving at the overall market size from the estimation process explained below, the total market has been split into several segments and subsegments. The data triangulation and market breakdown procedures have been employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments. The data has been triangulated by studying numerous factors and trends from both the demand and supply sides. Additionally, the market size has been validated using both top-down and bottom-up approaches.
Market Definition
Green ammonia refers to the manufacture of ammonia that is renewable and carbon-free. It is created by converting energy from sun, wind, and hydropower into an electrolyzer. It extracts hydrogen from water and removes nitrogen from the air using an air separation device. Ammonia is produced by reacting hydrogen and nitrogen at high temperatures and pressures. Green ammonia is used to produce carbon-neutral fertilizer products and decarbonize the food value chain, and it is likely to be used as a climate-neutral transportation fuel in the near future.
The Green ammonia market comprises revenues of companies for various end users such as transportation, power generation and industrial feedstock.
Key Stakeholders
- Industrial gas companies
- Ammonia manufacturers
- Electrolyzer and other equipment providers
- Hydrogen generation product and solution providers
- Engineering, procurement, and construction companies
- R&D laboratories
- Consulting companies from the energy & power sector
- Government and research organizations
- Renewable energy providers
Objectives of the Study
- To define, characterize, segment, and predict the value of the green ammonia market, by technology and end-use application.
- To predict the market size across four important regions: North America, Europe, Asia Pacific, and Rest of the World, as well as country-level analysis in terms of value and volume.
- To describe key elements required to produce green ammonia
- Provide statistical data on ammonia production, hydrogen generation, installed renewable capacity, and greenhouse gas emissions for each area and nation.
- To give extensive information about major drivers, restraints, opportunities, and industry-specific issues that influence the growth of the green ammonia market.
- To strategically study the green ammonia market in terms of individual growth patterns, opportunities, and contributions of each sector to the industry.
- To offer supply chain analysis, trends/disruptions effecting client business, market mapping, price analysis, and regulatory landscape for green ammonia.
- To strategically study micromarkets in terms of individual growth patterns, anticipated expansions, and their contribution to the overall market.
- Analyzing prospects for stakeholders in the green ammonia industry and creating a competitive landscape for market players
- To benchmark market participants, use the company assessment quadrant, which examines market players based on numerous characteristics within the broad areas of business and product strategies.
- To compare the main market participants based on their market share, product characteristics, and applications.
- To strategically profile important players and thoroughly study their market ranking and essential strengths.
- To examine competitive developments in the green ammonia market, such as sales contracts, agreements, investments, expansions, product launches, partnerships, joint ventures, and collaborations.
Available Customizations:
With the given market data, MarketsandMarkets offers customizations according to the specific requirements of companies. The following customization options are available for the report:
Product Analysis
- Product Matrix, which provides a detailed comparison of the product portfolio of each company
Company Information
- Detailed analyses and profiling of additional market players
Generating Response ...
Growth opportunities and latent adjacency in Green Ammonia Market