Green Ammonia Market

Green Ammonia Market Size:

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 market for green ammonia is witnessing a steady growth due to the escalating demand for sustainable and clean energy sources across the globe, continuous technological advancements in electrolysis methods, and the growing applications of green ammonia in various sectors including transportation, power generation, and agriculture.

Green Ammonia Market Analysis:

• Major Market Drivers: According to the green ammonia market outlook, key drivers include the global shift towards sustainable energy solutions and rising product demand in various sectors. The market is further expanding due to increased investments from both government and private sectors, with projections indicating a significant rise in the green ammonia market price over the next decade.
• Key Market Trends: Based on the green ammonia market statistics, notable trends include the elevating number of collaborations between energy companies and governments to establish projects. Beyond this, the growing emphasis on research and innovation to optimize production processes and reduce costs, are strengthening the green ammonia market demand.
• Geographical Trends: Europe is leading the market due to supportive government policies and investments, largely influenced by its aggressive climate targets. Other regions are experience steady growth propelled by rapid industrial expansion and a strong focus on sustainable energy sources.
• Competitive Landscape: Some of the major market players in the green ammonia industry include ACME Group, AMMPower Corp, CF Industries Holdings Inc., FuelPositive Corporation, ITM Power plc, Siemens AG, Starfire Energy, ThyssenKrupp AG, Topsoe, among many others.
• Challenges and Opportunities: The market faces challenges such as high initial production costs and the need for substantial infrastructure development. However, according to the green ammonia market outlook, the growing commitment to reduce carbon emissions, which present opportunities for innovation in cost reduction and efficient production methods, is expanding the market share.
   

Green Ammonia Market Trends:

Increasing demand for clean energy resources

The escalating demand for clean and sustainable energy sources is a primary factor expanding the green ammonia market application. Nations across the globe are committing to reducing greenhouse gas emissions. This is further supported by the recent finding of the International Energy Association (IEA), according to which the share of fossil fuels in the global energy supply will decrease by 73% by 2030. In this context, green ammonia serves as a key enabler in the transition to a low-carbon economy, particularly in hard-to-abate sectors such as maritime transport and industrial processes. Additionally, the heightened awareness about its versatility, as it can be used as a fuel and for energy storage, is further amplifying the green ammonia market demand. Moreover, governments and private entities are increasingly investing in green ammonia projects, recognizing its potential in achieving climate goals and fostering a green economy. For example, Ascension Clean Energy (ACE) and Topsoe are establishing a $7.5 Billion facility in Louisiana that will produce 7.2 million metric tons of green ammonia.

Supportive government policies and investments

According to the green ammonia market outlook, government initiatives and funding are critical accelerants for the market. Countries across the globe are implementing policies that encourage the adoption of green technologies. Recently, the Depart of Energy (DoE) in the United States of America announced funding for several clean energy projects, such as the Adam Fork Energy clean ammonia project, which will produce around 2.16 million tonnes of ammonia every year. Furthermore, governments are providing subsidies, tax incentives, and favorable regulatory frameworks to promote green ammonia as a viable alternative to conventional ammonia. These policies are designed to lower the cost barrier and incentivize private investments in production facilities. Beyond this, international agreements on climate change that are exploring sustainable solutions are expanding the green ammonia market application.

Technological advancements in production methods

The expansion of production technologies is a key factor driving the green ammonia market demand. Advancements in electrolysis, such as proton exchange membrane (PEM) and solid oxide electrolysis cells (SOEC), which enable more efficient and cost-effective synthesis of hydrogen from water, thus reducing product expenditure and lowering the green ammonia market price is acting as a growth-inducing factor. Along with this, innovations in renewable energy sources, such as wind and solar power, which decrease the cost of electricity, a major expense in production, are favoring the market share. In addition, companies and research institutions are actively investing in developing catalysts and processes that increase production efficiency while reducing environmental impact. This will enhance the economic viability of green ammonia and ensure its alignment with environmental sustainability goals.

Green Ammonia Market 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 for 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.

Based on recent green ammonia market statistics, alkaline water electrolysis (AWE) is currently the most dominant segment due to its proven reliability and comparatively lower cost. It operates on the principle of electrolyzing water to produce hydrogen and oxygen in an alkaline solution, utilizing relatively inexpensive catalysts. Additionally, the technology's maturity and established infrastructure make it a preferred choice for large-scale hydrogen production, which is essential for the synthesis of green ammonia. Furthermore, the ongoing enhancements in AWE aim to improve its efficiency and reduce operational costs, ensuring its continued prevalence in the production process.

Breakup by End User:

• Power Generation
• Transportation
• Fertilizer
• Refrigeration
• Others
   

Transportation holds the largest share of the industry

A detailed breakup and analysis of the market based on the end user have 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.

According to the green ammonia market outlook, the transportation segment holds the largest share of the market, driven by the escalating demand for clean and sustainable fuel alternatives. Furthermore, green ammonia’s potential as a carbon-free fuel, especially in the maritime and heavy transportation sectors, positions it as a key solution in reducing transportation-related emissions. Additionally, significant investments and research focused on developing ammonia-powered engines and fuel cells are expanding the green ammonia market application. Moreover, the increasing interest from shipping companies and governments in adopting ammonia as a marine fuel is further solidifying its dominant position in the market.

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 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 represents the largest regional market for green ammonia.

Europe is the largest and most dynamic segment in the market, largely due to its aggressive environmental policies and commitment to reducing carbon emissions. Furthermore, the European Green Deal, which provides an action plan to regional countries to move towards clean energy and a circular economy is expanding the green ammonia market demand. Additionally, the European Union’s ambitious targets for climate neutrality are a major catalyst driving the adoption of green ammonia, particularly in energy-intensive industries and transportation. Moreover, the region’s advanced renewable energy infrastructure, combined with strong governmental support and public-private partnerships, is boosting the green ammonia market application.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the major market players in the green ammonia industry include ACME Group, AMMPower Corp, CF Industries Holdings Inc., FuelPositive Corporation, ITM Power plc, Siemens AG, Starfire Energy, ThyssenKrupp AG, and Topsoe.
• Key players in the market are actively engaging in various strategic initiatives to bolster their market position and respond to the growing demand for sustainable energy solutions. These companies are heavily investing in research and innovation to enhance the efficiency and cost-effectiveness of production technologies. Along with this, several firms are engaging in collaborations, partnerships, and joint ventures with other energy and technology players to leverage each other’s strengths and expand market reach. Additionally, numerous players are involved in pilot projects and the development of production facilities, particularly in regions with strong governmental support and favorable policies.

Green Ammonia Market News:

• 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 November 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 September 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 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 assists 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.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.