Green Ammonia Market

Market Overview:

The global green ammonia market size reached US$ 270.8 Million in 2023. Looking forward, IMARC Group expects the market to reach US$ 24,502.8 Million by 2032, exhibiting a growth rate (CAGR) of 64.59% during 2024-2032. The growing demand for sustainable alternatives to mitigate carbon footprint in the environment, rising preference for renewable energy sources, and stringent government policies to address climate change are some of the major factors propelling the market.

Green ammonia is a nitrogen-based compound that is produced through a sustainable and environmentally friendly process. It is synthesized using renewable energy sources, such as wind or solar power, in a process called electrolysis, unlike conventional ammonia production, which relies heavily on fossil fuels and emits significant greenhouse gases. As it assists in reducing the dependence on fossil fuels, the demand for green ammonia is rising across the globe.

At present, the increasing employment of green ammonia as a clean fuel for transportation purposes is bolstering the growth of the market. Besides this, the growing demand for green ammonia to produce fertilizers for sustainable agriculture is offering a positive market outlook. In line with this, the rising employment of green ammonia, as it can serve as an efficient and scalable energy storage solution, is propelling the market growth. Apart from this, innovations in green ammonia production technologies to make it more cost-effective and scalable around the world are contributing to the market growth. Furthermore, the rising adoption of sustainable alternatives to traditional refrigerants like hydrofluorocarbons (HFCs) due to its lower environmental impact and regulatory restrictions on HFCs is strengthening the market growth. Moreover, the increasing utilization of heating, ventilation, and air conditioning (HVAC) appliances among individuals is offering lucrative growth opportunities to industry investors.

Green Ammonia Market Trends/Drivers:

Growing demand for sustainable alternatives

The increasing environmental awareness and concerns among the masses across the globe are contributing to the growth of the market. People are increasingly becoming aware about the adverse effects of climate change and the depletion of natural resources. In addition, they are preferring sustainable alternatives that benefit in reducing carbon footprint in the environment. Apart from this, traditional ammonia production methods heavily rely on fossil fuels and emit significant greenhouse gases (GHGs), contributing to climate change. On the other hand, green ammonia production uses renewable energy sources, significantly reducing its carbon footprint. As a result, it is increasingly seen as a vital component of a greener and more sustainable future.

Increasing preference for renewable energy sources

The utilization of renewable energy sources into the green ammonia production process is bolstering the market growth. In addition, there is a rise in the preference for clean energy, such as wind and solar power. These intermittent energy sources can produce surplus electricity during favorable conditions. Besides this, the ammonia production facilities can utilize this surplus energy, especially through a process called electrolysis, where water is split into hydrogen and oxygen. Moreover, this green hydrogen can then be used to produce ammonia. This synergy between renewable energy and ammonia production not only reduces the carbon footprint but also enhances the economic viability of renewable energy projects, which is offering a positive market outlook.

Stringent government policies to address climate change

Governing agencies of several countries are implementing stringent policies to curb environmental pollution, which is positively influencing the market. They are also offering numerous financial incentives, tax credits, grants, and subsidies for renewable energy projects and green ammonia facilities. In line with this, they are recognizing the urgency of addressing climate change to maintain sustainability. Apart from this, carbon pricing mechanisms and emissions reduction targets are encouraging industries to transition to greener ammonia production methods. Moreover, international agreements also assist in reducing carbon emissions and prompting nations to explore sustainable ammonia alternatives, which is strengthening the growth of the market.

Green Ammonia Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on technology and end user. 

Breakup by Technology:

• Proton Exchange Membrane
• Alkaline Water Electrolysis 
• Solid Oxide Electrolysis
   

Alkaline water electrolysis accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the technology. This includes proton exchange membrane, alkaline water electrolysis, and solid oxide electrolysis. According to the report, alkaline water electrolysis represented the largest segment.

Alkaline water electrolysis (AWE) is a technology used in the production of green ammonia. This method involves the splitting of water (H₂O) into hydrogen (H₂) and oxygen (O₂) using an electrolyzer. In AWE, an alkaline electrolyte, typically potassium hydroxide (KOH), is used to facilitate the electrolysis process. When an electric current is applied to the electrolyzer, water molecules at the cathode are reduced to form hydrogen gas, while oxygen gas is generated at the anode. The produced hydrogen gas is then combined with nitrogen in a separate step to synthesize ammonia (NH3). AWE is widely adopted due to its enhanced technology, reliability, and lower capital costs as compared to other electrolysis methods.

Breakup by End User:

• Power Generation
• Transportation
• Fertilizer
• Refrigeration
• Others
   

Transportation holds the largest share in the industry

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes power generation, transportation, fertilizer, refrigeration, and others. According to the report, transportation accounted for the largest market share.

Green ammonia is rapidly gaining popularity as a sustainable energy carrier in the transportation sector. It holds promise as a clean and efficient alternative to traditional fossil fuels, particularly in heavy-duty and long-haul applications where electrification is challenging. In the marine sector, it can be used in ammonia-powered engines or as a source of hydrogen for fuel cells to propel ships while significantly reducing greenhouse gas emissions. In addition, it has high energy density and lower carbon emissions, which makes it an attractive option for reducing the environmental impact of air travel. On the other hand, it can be converted into hydrogen and used in fuel cells to power trains and trucks, providing a cleaner and more sustainable mode of transportation for goods and passengers.

Breakup by Region:

• North America 
  • United States 
  • Canada 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain 
  • Others 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa 
   

Europe leads the market, accounting for the largest green ammonia market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe accounted for the largest market share.

Europe held the biggest market share due to the increasing focus on reducing carbon emissions. Additionally, favorable government policies to promote clean energy solutions are offering a positive market outlook in the region. Apart from this, the rising focus on sustainable agriculture is contributing to the growth of the market. In addition, the presence of well-developed infrastructure for renewable energy, such as wind and solar power, is propelling the growth of the market in Europe. 

Competitive Landscape: 

Various players are allocating significant resources to develop advanced technologies for green ammonia production. This includes improving electrolysis processes, enhancing catalysts, and optimizing energy efficiency. In line with this, several companies are investing in the construction of large-scale green ammonia production facilities to meet increasing demand. These facilities often integrate with renewable energy sources for sustainable and efficient production. Apart from this, they are exploring a wide range of end-use applications, such as transportation fuels, energy storage, and sustainable fertilizers. In addition, major manufacturers are adopting sustainable practices throughout their supply chains to ensure environmental integrity by reducing waste and minimizing water usage.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• ACME Group
• AMMPower Corp
• CF Industries Holdings Inc.
• FuelPositive Corporation
• ITM Power plc
• Siemens AG
• Starfire Energy
• ThyssenKrupp AG
• Topsoe

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Recent Developments:

• In 2022, Siemens Energy partnered with Fortescue Future Industries (FFI) and GeoPura to develop ammonia cracker prototype in Newcastle, UK. The prototype will deliver 200 kg of high-purity, PEM-suitable hydrogen fuel per day.
• In August 2023, ACME Group signed the land agreement with Tata Steel Special Economic Zone Limited (TSSEZL) for its green hydrogen and green ammonia project at the Gopalpur Industrial Park (GIP) in Odisha, making it the first ever green hydrogen project of the state.
• In 2022, Topsoe signed a deal to provide 5GW of its solid-oxide electrolysers (SOEs) to First Ammonia (FA), a New York City start-up. The electrolysers will be powered by renewable energy to produce green hydrogen, which would then be combined with nitrogen from the air to produce green ammonia.

Green Ammonia Market Report Scope:

Key Questions Answered in This Report:

• How has the global green ammonia market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global green ammonia market?
• What is the impact of each driver, restraint, and opportunity on the global green ammonia market?
• What are the key regional markets?
• Which countries represent the most attractive green ammonia market?
• What is the breakup of the market based on the technology?
• Which is the most attractive technology in the green ammonia market?
• What is the breakup of the market based on the end user?
• Which is the most attractive end user in the green ammonia market?
• What is the competitive structure of the global green ammonia market?
• Who are the key players/companies in the global green ammonia market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the green ammonia market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global green ammonia market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the green ammonia industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.