Green Ammonia Market

• Growing Demand for Sustainable Fertilisers to Support the Market Growth

Growing agricultural productivity, notably in Asia and Africa, is driving up fertiliser demand on a global scale. The Food and Agriculture Organisation reports that overall fertiliser usage rose 5.4% from 2021 to 2022 year over year, with additional increases anticipated in the future. But the increasing use of chemical pesticides and fertilisers has decreased soil quality, necessitating the development of sustainable agriculture solutions. To meet this need, chemical manufacturers are converting to eco-friendly and sustainable goods, such green ammonia. Sales of green ammonia are anticipated to increase dramatically as a result of this trend.

Additionally, since fertilisers, such as ammonia, are an essential component of the green ammonia production process, an increase in the demand for fertilisers is expected to result in a significant rise in ammonia consumption. At first, only a select few customers could be able to pay the higher price of green ammonia. However, when this sustainable option gains greater traction in the market, more consumers might start to use it. Long-term, this would result in widespread use of green ammonia in the industrial and fertiliser markets, which would fuel the expansion of the green ammonia market CAGR globally.

Since ammonia has a far higher energy density compared to its volume than liquid hydrogen does, it can transfer much greater amounts of energy in a less amount of space. Ammonia may be stored and transported more conveniently because it liquefies at -33 °C. The need for intense cooling while transporting liquid hydrogen, on the other hand, necessitates up to an additional 40% of the energy content. As a result, green ammonia transport is not only more convenient than green hydrogen, but also safer and more economical.

Ammonia as a marine fuel is currently being tested in a number of projects. By 2024, Yara hopes to supply an upgraded North Sea supply ship with ammonia for use as a marine fuel. A viable alternative to tamoxifen is the export of renewable green energy from rural places with abundant wind, sun, or geothermal energy to larger urban centers. In the long run, renewable ammonia is probably going to replace fossil fuel ammonia as the primary fuel for shipping renewable energy across continents because of all these advantageous factors. Thus, driving the green ammonia market revenue.

Government initiatives play a pivotal role in shaping the Global Green Ammonia Market Industry. Many countries are implementing policies that promote the use of green ammonia as part of their broader climate action strategies. For instance, subsidies and incentives for renewable energy projects are encouraging the production of green ammonia. These policies not only support the transition to sustainable energy sources but also aim to achieve net-zero emissions targets. As a result, the market is expected to grow from 500 USD Million in 2024 to 2500 USD Million by 2035, reflecting a compound annual growth rate of 15.76% from 2025 to 2035, indicating a strong commitment to sustainable practices.

The ongoing global energy transition is a significant driver for the Global Green Ammonia Market Industry. As nations strive to reduce reliance on fossil fuels, the demand for alternative energy carriers like green ammonia is increasing. This transition is supported by international agreements aimed at curbing greenhouse gas emissions. The market is poised for substantial growth, with estimates projecting it to expand from 500 USD Million in 2024 to 2500 USD Million by 2035. The anticipated compound annual growth rate of 15.76% from 2025 to 2035 reflects the growing recognition of green ammonia as a viable solution in the quest for sustainable energy.

The Global Green Ammonia Market Industry is closely linked to the burgeoning hydrogen economy. Green ammonia serves as an effective carrier for hydrogen, facilitating its storage and transportation. As industries and governments explore hydrogen as a clean energy source, the demand for green ammonia is expected to rise. This relationship is particularly relevant in regions investing heavily in hydrogen infrastructure. The market's growth potential is underscored by projections indicating a rise from 500 USD Million in 2024 to 2500 USD Million by 2035, suggesting that green ammonia could play a crucial role in the future energy landscape.

Technological advancements are significantly influencing the Global Green Ammonia Market Industry, particularly in production methods. Innovations in electrolysis and Haber-Bosch processes are enhancing the efficiency and cost-effectiveness of green ammonia production. These advancements enable the utilization of renewable energy sources, such as wind and solar, to produce ammonia without carbon emissions. As technology continues to evolve, it is likely that production costs will decrease, making green ammonia more competitive with traditional ammonia. This shift is crucial for meeting the projected market growth, which is anticipated to reach 2500 USD Million by 2035, driven by increased adoption of these technologies.

The Global Green Ammonia Market Industry is witnessing a surge in demand for sustainable fertilizers, driven by the agricultural sector's increasing focus on environmentally friendly practices. Green ammonia, produced through renewable energy sources, serves as a carbon-neutral alternative to traditional ammonia fertilizers. This shift is particularly evident in regions where regulatory frameworks are tightening around emissions. As of 2024, the market is projected to reach 500 USD Million, with expectations to expand significantly as farmers adopt greener practices. This trend aligns with global initiatives aimed at reducing carbon footprints in agriculture, suggesting a robust growth trajectory for green ammonia in the coming years.

By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American green ammonia market area will dominate this market. The adoption of electric vehicles in the area and increased R&D for hydrogen production are credited with this surge. In addition, market expansion is being fueled by government assistance, increasing investor involvement, and the viability of the technology in the area.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GREEN AMMONIA MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

Europe Green ammonia Market is expected to grow at the fastest CAGR from 2023 to 2032. Due to the increasing use of technical improvements, the product is in high demand in Spain and Germany. With the industry becoming more concentrated, Europe is home to numerous ammonia production facilities and offers booming potential for manufacturers. Further, the German green ammonia market held the largest market share, and the Spain green ammonia market was the fastest growing market in the European region

Asia Pacific green ammonia market accounts for the second-largest market share. This is a result of government policies and programmes that aim to cut carbon emissions and promote renewable energy. For instance, the Indian government has offered subsidies to encourage the usage of electric cars there. Moreover, China’s green ammonia market held the largest market share, and the Indian green ammonia market was the fastest growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the green ammonia market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, green ammonia industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global green ammonia industry to benefit clients and increase the market sector. In recent years, the green ammonia industry has offered some of the most significant advantages.

Major players in the green ammonia market are attempting to increase market demand by investing in research and development operations are Siemens AG, NEL ASA, ThyssenKrupp, ITM Power, CF Industries Holdings, Inc., Ballard Power Systems, AMMPower Corp, FUELPOSITIVE Corporation, Haldor Topsoe, Uniper, Hyport Duqm, Enapter, Starfire Energy, Engie, BASF SE, Yara International, Hiringa Energy, Queensland Nitrates Pty Ltd.

The industrial group ThyssenKrupp AG (ThyssenKrupp) was founded. Automobile, building, steel, and related processing, energy and utilities, public sector, packaging, trading, engineering, and other customer sectors are among its business segments. Steel goods, component technology solutions, maritime systems, supply chain management, and automation solutions for automotive OEMs are among the services offered by the business. ThyssenKrupp also offers services for industrial systems and plants and acts as a partner in engineering and construction.

In August 2021, Thyssenkrupp AG and Helios, a business based in the United Arab Emirates, have a contract for the construction of a plant to produce green hydrogen and green ammonia using the latter's patented technology.

ITM Power Plc (ITM Power) is a manufacturer and designer of hydrogen energy systems for the production of clean fuels and energy storage. The business creates tools to transform renewable energy into a clean fuel that can be stored for use in transportation, industry, and household uses, as well as a variety of materials that help lower the cost of hydrogen generation. Electrolysis equipment and hydrogen storage systems are sold by ITM Power, which also develops and produces prototype items.

In April 2020, the UK government awarded ITM Energy a project to create green hydrogen production methods employing 100 MW electrolyzers.