Green Ammonia Market Highlights

The global green ammonia market is estimated at US$ 0.25 billion in 2023, which is expected to reach USD 53.9 billion at a CAGR of 82.8% during 2024-2032.

Green Ammonia Market CAGR

2023-2033

CAGR OF

82.8%

Green Ammonia Market

Ammonia, a colorless pungent gas, is widely used as an industrial feedstock for the production of fertilizers, and other chemicals on a global scale. Around 80% of the ammonia produced is being utilized in the manufacturing of fertilizers. However, conventional ammonia production methods rely heavily on fossil fuels, resulting in significant greenhouse gas emissions and environmental hazards. To address these concerns, the market has witnessed the emergence of clean ammonia, such as green ammonia and blue ammonia. 
Green ammonia is produced using renewable energy sources, such as wind, solar, and hydroelectric power, thereby offering several advantages, including carbon neutrality and minimized ecological footprint. Further, green ammonia can be employed as transportation fuel, hydrogen carrier system and as a means of energy storage, making it a versatile and eco-friendly alternative for industries aiming to reduce their carbon footprint. The growth of the green ammonia industry has been further accelerated by the commitment of nations under the Paris Agreement to combat climate change. Signatories to the agreement are focused on reducing greenhouse gas emissions and transitioning towards cleaner energy sources. This has created a favorable regulatory environment and market conditions for the adoption of green ammonia, thereby facilitating the development of more than 170 green ammonia projects across the globe.

Green Ammonia Market Dynamics

As the world looks to reduce its reliance on fossil fuels, the demand for renewable energy sources is increasing. Green ammonia is a promising alternative to traditional ammonia production, which is heavily dependent on fossil fuels.

Governments around the world are implementing regulations to reduce greenhouse gas emissions. This is driving demand for low-carbon products, such as green ammonia.

The cost of renewable energy sources, such as wind and solar power, has been decreasing rapidly in recent years. This has made it more economically viable to produce green ammonia using renewable energy sources.
Advancements in technology are making it possible to produce green ammonia more efficiently and cost-effectively. This is driving down production costs and making green ammonia a more attractive option for businesses and consumers.
Investors and governments are providing significant funding for the development of green ammonia technologies. This is driving innovation and growth in the sector.
There is growing interest in integrating the green ammonia supply chain with other sectors, such as agriculture and transportation. This is creating new opportunities for growth and innovation in the sector.
Strategic Partnerships are Driving Advancements in the Green Ammonia Market. Stakeholders in the green ammonia industry have forged several partnerships with organizations to drive technological advancements in the sustainable energy domain. For instance, in December 2023, Sembcorp Industries entered into a strategic partnership with two Japanese firms, namely Sojitz Corp and Kyushu Electric Power to supply green ammonia produced in India to Japan, thereby reducing carbon emissions in Japan. The partnership aligns with the Japanese government's objective of achieving net-zero emissions by 2050. Earlier in April 2023, Yara Clean Ammonia (a subsidiary of Yara International) and VNG allied to facilitate the supply of clean ammonia (blue ammonia and green ammonia) as a hydrogen and energy carrier into the German market. The partnership aims to develop projects that promote the use of clean ammonia and contribute to decarbonizing the power supply mix in Germany, with Rostock as the point of import. Such partnerships are expected to drive green ammonia market growth during the forecast period.

Green Ammonia Market Segment Analysis

Green Ammonia Market

By Technology

XX%

Alkaline Water Electrolysis (AWE)

Solid Oxide Electrolyzer Cell (SOEC)

Polymer Electrolyte Membrane Electrolysis (PEM)

0.25

Total Market Size

USD (Billion), 2023

82.8%

CAGR

2023 - 2033

The global green ammonia market is segmented into technology and application. Based on Technology, the market is segmented into alkaline water electrolysis (AWE), solid oxide electrolyzer cell (SOEC), and polymer electrolyte membrane electrolysis (PEM). 
Among these technologies, the solid oxide electrolyzer cell segment is projected to witness the highest growth rate during the forecast period. This can be attributed to its notable advantages, including high electrical efficiency, surpassing conventional electrolyzers with a remarkable improvement of over 30%, and low material cost. Moreover, SOEC offers the versatility to operate in co-electrolysis mode, facilitating the production of syngas from water steam, and carbon dioxide.
The proton exchange membrane technology segment dominated the market with the highest revenue share of 44.4% in 2022. This can be attributed to growing awareness concerning the advantage of this technology due to its high electric efficiency ranging above 90% with high current densities at low voltages. Additionally, favorable government subsidies towards green and clean energy production and increased R&D on fuel cell plans can trigger product demand.
The solid oxide electrolysis technology is expected to register the highest growth rate over the forecast period. This technology includes the usage of electricity generated from renewable sources to produce green hydrogen, which is further synthesized to produce green ammonia.

Green Ammonia Market

By End-User

Transportation

Power Generation

Industrial Feedstock

The Market will Grow

At the CAGR of:

82.8%

The Forecast Market

Size for 2033 in USD:

$53.9B

The technology providers are constantly increasing their R&D activities to achieve enhanced performance and cost reductions on the system, cell, and stack levels. These investments are made by the manufacturers in R&D to get efficient results which trigger the market growth.

Based on application, the green ammonia market is bifurcated into transportation, power generation, and industrial feedstock. The power generation segment accounted for the largest market share in 2023, which is anticipated to witness fastest growth rate during the forecast period during the forecast period.

Green Ammonia Market Regional Analysis

Green Ammonia Market

By Region

The Market will Grow

At the CAGR of:

82.8%

The Forecast Market

Size for 2033 in USD:

$53.9B

Geographically, the green ammonia market is classified into various regions such as North America, Europe, Asia-Pacific, South America, and the Middle East & Africa.
Europe accounted for the largest market share in 2023, which is anticipated to continue its presence by 2032. This is attributed to the stringent environmental regulations, strong emphasis on carbon neutrality, and increasing adoption of green ammonia in various industries. Limited availability of renewable energy sources, high production costs, and the need for significant infrastructure development. Expansion of the renewable energy sector, development of ammonia as a fuel for transportation, and strategic collaborations for technology advancement. Energy storage and grid integration issues, competition from conventional ammonia suppliers, and regulatory complexities.

Green Ammonia Market Key Players

The green ammonia market seems to be dominated by the presence of several large companies that have the required expertise to contribute significantly to the growth and development of the industry. Companies in the green ammonia market are adopting several strategies to position themselves in this growing industry. For instance, these companies are indulging in partnerships and collaborations to leverage each other's strengths and accelerate the development and commercialization of green ammonia technologies. These partnerships can involve technology providers, renewable energy companies, and end-users such as fertilizer manufacturers.

The key companies engaged in the green ammonia industry include:

•    Siemens Energy 
•    NEL ASA 
•    ThyssenKrupp 
•    ITM Power 
•    YARA International
•    BASF SE
•    MAN Energy Solutions
•    Hydrogenics
•    Green Hydrogen Systems
•    McPhy Energy
•    Electrochaea
•    EXYTRON
•    AquaHydrex
•    Enapter
•    ENGIE
•    Uniper
•    Haldor Topsoe
•    Starfire Energy
•    Queensland Nitrates Pty Ltd
•    Hiringa Energy

Green Ammonia Market Scope: