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3. Blue Ammonia Market Size & Share - Future Growth Expectations

The global blue ammonia market size is expected to reach USD 7,664 million by 2030 from an estimated USD 78 million in 2023, at a CAGR of 62.3% during the forecast period. The major factors driving the growth of this market include the growing focus on reducing greenhouse gas emissions and increasing efforts toward empowering hydrogen economy.

The blue ammonia market has been gaining traction due to several key factors.

• Transition to a Low-Carbon Economy
• Hydrogen Economy Development
• Government Support and Incentives
• Industrial Applications
• Global Energy Transition
• Technological Innovations

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

Transition to a Low-Carbon Economy:

• Reducing greenhouse gas emissions across industries is becoming more and more important as the world advances toward decarbonization and climate change mitigation. Compared to conventional ammonia production techniques, blue ammonia, which is made from hydrogen obtained from fossil fuels using carbon capture and storage (CCS) technology, offers a solution to reduce emissions. Blue ammonia is projected to become more in demand as a cleaner substitute as sustainability becomes a top priority for businesses, governments, and consumers.

Hydrogen Economy Development:

• Ammonia's high hydrogen concentration and well-established manufacturing, storage, and distribution infrastructure make it a suitable carrier for hydrogen storage and delivery. As an intermediary in the hydrogen economy, blue ammonia—produced from hydrogen obtained from fossil fuels with CCS—allows hydrogen to be transported and stored in a form that is both handy and energy-dense. The need for blue ammonia is predicted to rise as nations make investments in building infrastructure and hydrogen economies.

Government Support and Incentives:

• To encourage the development and use of low-carbon fuels like blue ammonia, governments all over the world are putting regulations, incentives, and financial support mechanisms into place. The market is driven to grow by renewable energy targets, carbon pricing mechanisms, tax credits, grants, and subsidies, which all boost investment in blue ammonia projects. Furthermore, regulatory frameworks like carbon capture incentives and emissions trading programs open up new markets for investors and producers of blue ammonia.

Industrial Applications:

• Ammonia is a vital resource in many different industries since it is utilized extensively as a feedstock for the manufacturing of chemicals, fertilizers, and medicines. Blue ammonia provides a low-carbon substitute for ammonia manufacturing, assisting businesses in lowering their carbon footprint and adhering to environmental requirements. It is created from fossil-based hydrogen with CCS. Blue ammonia is one of the low-carbon alternatives that are predicted to become more in demand as industry work to decarbonize their operations and cut emissions.

Global Energy Transition:

• In order to facilitate energy storage, grid balancing, and sector coupling, low-carbon fuels and energy carriers must be integrated with renewable energy sources including wind, solar, and hydroelectric power. With CCS technology, blue ammonia can be created from a range of fossil fuels, such as coal, petroleum, and natural gas, to reduce carbon emissions. There will likely be a rise in demand for blue ammonia as a flexible and low-carbon energy carrier as nations work to meet their climate commitments and expedite the energy transition.

Technological Innovations:

• Innovation in the blue ammonia market is being driven by ongoing developments in hydrogen synthesis techniques, ammonia production technologies, and CCS technology. Researchers and manufacturers are working to create efficient and economical methods for creating blue ammonia with the least amount of carbon emissions possible. Improved catalysts, membrane technologies, and process optimization are examples of technological developments that boost the sustainability and competitiveness of blue ammonia production, which propels market expansion.

Due to the fact that nations, businesses, and investors understand how low-carbon fuels may help combat climate change and promote sustainable development, the blue ammonia market is expected to rise significantly. Blue ammonia is anticipated to be a key player in the shift to a low-carbon economy and the wider uptake of hydrogen as a clean energy source with the help of favorable regulations, technological developments, and international cooperation.

Blue Ammonia Market Share - Global Industry Landscape

The blue ammonia market is characterized by the presence of several key players competing for market share. Some of the leading companies in the blue ammonia industry include:

• Yara International ASA (Norway)
• Saudi Arabian Oil Co. (Saudi Arabia)
• Ma’aden (Saudi Arabia)
• CF Industries Holdings, Inc. (US)

The interest and investment from large energy firms, governments, and research institutes show an increasing momentum for the development and commercialization of blue ammonia as a low-carbon energy carrier, even though market share data especially for blue ammonia may not be easily available. Market share in the blue ammonia industry may change as initiatives develop, technology advances, and policies encourage the use of low-carbon fuels.

Yara International ASA (Norway)

• Yara International ASA is a leading global chemical company producing nitrogen fertilizers, nitrates, ammonia, urea, and other nitrogen-based chemicals. The company operates through six business segments: Europe, Americas, Africa & Asia, Global Plants & Operational Excellence, Industrial Solutions, and Clean Ammonia. The company manufactures ammonia, nitrates, and NPK fertilisers (nitrogen, phosphorus, and potassium). Yara Clean Ammonia, a division of Yara International ASA, is dedicated to lowering carbon emissions. It intends to capitalise on potential for low-emission fuel in transportation and power, carbon-free food production, and industrial ammonia. Yara produces carbon-free fertilisers using renewable energy sources and is a prominent producer of CO2-free ammonia, the key component of green fertilisers. The company intends to produce green ammonia by 2025 in order to reduce greenhouse gas emissions.

Saudi Arabian Oil Co. (Saudi Arabia)

• Saudi Arabian Oil Co., also known as Saudi Aramco, is a Saudi state-owned oil firm and one of the world’s largest integrated energy corporations. The company has three main business segments: Downstream, Upstream, and Corporate. Saudi Arabian Oil Company provides hydrogen through its Downstream division. Power generation and supply, marketing, retail operations, distribution, and trading of refined products (LPG, naphtha, gasoline, jet fuel/kerosene, diesel, heavy fuel oil, and asphalt), petrochemicals, base oils, and lubricants are also handled by this division. Steam methane reforming (SMR) and other technologies, such as autothermal reforming, are used by Saudi Aramco to create hydrogen from natural gas. In addition, the company focuses on carbon capture methods for the production of blue ammonia. With the assistance of the Japanese Ministry of Economy, Trade, and Industry, Aramco, and the Institute of Energy Economics, Japan successfully demonstrated the manufacturing and shipping of blue ammonia from Saudi Arabia to Japan in September 2020, in collaboration with SABIC. A total of 40 tonnes of high-quality blue ammonia was sent to Japan for use in zero-carbon power generation.

Ma’aden (Saudi Arabia)

• Ma'aden is the largest multi-commodity mining and metals company in the Middle East. Ma'aden is involved in exploring, developing, and producing a range of mineral resources, including gold, phosphate, aluminum, copper, and industrial minerals. The company operates through four business segments: Phosphate, Aluminium, Base Metals and New Minerals, and All Other Segments. All Other Segments include corporate management and support functions, cooperative insurance, and infrastructure. The Phosphate segment comprises phosphate fertilizers, ammonia, industrial minerals, and marketing and distribution. Ma'aden is the largest exporter of blue ammonia, for which production started in 2022. Over 138,000 tonnes of blue ammonia products have been sent by Ma'aden to the world's top markets, including Korea, China, Japan, India, Thailand, and the European Union, establishing a significant footprint in global efforts to green industrial value chains. The company has made several contracts and agreement for the supply of blue ammonia. For instance, in 2023, Ma’aden announced signing an agreement to supply blue ammonia to Taiwan Fertiliser Company (TFC), the first-ever commercial shipment to Taiwan.

CF Industries Holdings, Inc. (US)

• CF Industries Holdings is a global leader in nitrogen fertilizer manufacturing, with operations spanning the production and distribution of ammonia, urea, and other nitrogen-based products. Blue ammonia is a term used to describe ammonia produced through a process that captures and utilizes carbon emissions, thus reducing its overall carbon footprint. CF Industries Holdings involvement with blue ammonia reflects its commitment to sustainability and reducing the carbon footprint of its operations. As demand for low-carbon energy sources continues to grow, blue ammonia could play a significant role in decarbonizing industries and transitioning to a more sustainable energy future.

Related Reports:

Blue Ammonia Market by Technology (Steam Methane Reforming (SMR), Autothermal Reforming (ATR), Gas Partial Oxidation), End-use Application (Industrial Feedstock, Power Generation, Transportation) and Region - Global Forecast to 2030