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The market dynamics of the green ammonia sector are influenced by various factors driving its growth and shaping its landscape. Green ammonia, produced through renewable energy sources and sustainable methods, is gaining momentum as a viable alternative to traditional ammonia production, primarily due to its environmental benefits and versatility. One of the key drivers propelling the market is the increasing global emphasis on reducing carbon emissions and transitioning towards cleaner energy sources. As countries strive to meet their climate targets outlined in international agreements like the Paris Agreement, the demand for green solutions such as green ammonia continues to rise.
Furthermore, government policies and regulations play a significant role in shaping the market dynamics of green ammonia. Subsidies, incentives, and mandates aimed at promoting renewable energy and reducing greenhouse gas emissions create a favorable environment for the growth of green ammonia production and adoption. Governments worldwide are implementing measures to support the development of green ammonia infrastructure, such as funding research and development initiatives and offering financial incentives for renewable energy projects.
Technological advancements also contribute to the market dynamics of green ammonia. Innovations in electrolysis, which enables the production of green hydrogen, a key component in green ammonia production, are driving down costs and improving efficiency. Additionally, advancements in ammonia synthesis processes and storage technologies are enhancing the viability and scalability of green ammonia production, further fueling market growth.
The evolving energy landscape and shifting consumer preferences are also influencing the market dynamics of green ammonia. Businesses and industries are increasingly recognizing the importance of sustainability and are seeking eco-friendly alternatives to conventional products and processes. Green ammonia offers a sustainable solution for various applications, including fertilizer production, energy storage, and fuel for transportation, driving demand across multiple sectors.
Market dynamics are further shaped by factors such as investment trends, supply chain dynamics, and market competition. As investors increasingly prioritize sustainable investments, funding flows into green ammonia projects, supporting expansion and innovation in the sector. Additionally, the establishment of robust supply chains and distribution networks is essential for ensuring the efficient production and delivery of green ammonia to end-users. Market competition drives companies to innovate and differentiate their products and services, driving further growth and development in the green ammonia market.
However, the market dynamics of green ammonia also face challenges and constraints that must be addressed. Cost competitiveness remains a key barrier to widespread adoption, as green ammonia production is often more expensive than traditional methods. Addressing cost challenges through technological innovation and economies of scale is essential for driving down production costs and enhancing market competitiveness.
Moreover, the scalability of green ammonia production presents a significant challenge, as ramping up production capacity requires substantial investment in infrastructure and resources. Overcoming scalability constraints requires collaboration among stakeholders across the value chain, including governments, industry players, and investors, to support the development of large-scale green ammonia projects.
Green Ammonia Market Highlights:
Global Green Ammonia Market Overview
Green Ammonia Market Size was valued at USD 0.3 billion in 2022. The green ammonia industry is projected to grow from USD 0.5 billion in 2023 to USD 39.9 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 73.50% during the forecast period (2024 - 2032). The market has grown over the projection period as a result of many key market drivers, including an increase in green hydrogen projects, rising investment in the hydrogen-based economy, and rising demand for green ammonia in the agriculture and power generating sectors.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Green Ammonia Market Trends
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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.
Green Ammonia Market Segment Insights
Green Ammonia Gasifier Technology Insights
The Green Ammonia Market segmentation, based on gasifier technology includes Alkaline Water Electrolysis, Proton Exchange Membrane Electrolysis and Solid Oxide Electrolysis. The proton exchange membrane electrolysis segment dominated the market. The reason for this is because people are becoming more aware of the benefits of this technology, which has an electric efficiency of above 90% and large current densities at low voltages. Favourable government incentives for the generation of green and clean energy as well as enhanced R&D on fuel cell technologies can also boost product demand.
Green Ammonia Gasifier Application Insights
The Green Ammonia Market segmentation, based on gasifier application, includes Power Generation, Transportation and Industrial Feedstocks. The transportation category generated the most income. The worldwide fuel energy crisis, which has fueled the need for green fuel, is to blame for its large share. Renewable sources, including green ammonia and others, are replacing conventional ones. These sources generate fuel that is clean, effective, and environmentally benign. Global attention is being given to issues like environmental preservation and carbon emissions.
Figure 1: Green Ammonia Market, by Gasifier Application, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Green Ammonia Regional Insights
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, MRFR 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.
Green Ammonia Key Market Players & Competitive Insights
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.
Key Companies in the green ammonia market include
- 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
Green Ammonia Industry Developments
August 2022 The Avaada Group announced the opening of a green ammonia production facility in Rajasthan. The project aims to apply sustainable alternatives to satisfy India's increasing energy demand.
October 2021 A 50-100 MW electrolysis facility was built in Egypt in cooperation between Fertiglobe, Scatec, and the Sovereign Fund of Egypt. 90,000 metric tonnes of green ammonia are produced at the facility each year. The new facility is utilising Fertiglobe's ammonia platform to provide sustainable and clean solutions.
Green Ammonia Market Segmentation
Green Ammonia Gasifier Technology Outlook (USD Billion, 2018-2032)
- Älkaline Water Electrolysis
- Proton Exchange Membrane Electrolysis
- Solid Oxide Electrolysis
Green Ammonia Gasifier Application Outlook (USD Billion, 2018-2032)
- Power Generation
- Transportation
- Industrial Feedstocks
Green Ammonia Regional Outlook (USD Billion, 2018-2032)
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North America
- US
- Canada
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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