Green Ammonia Market Overview
“The Green Ammonia Market Predictable at $2.56 billion in 2022, is estimated to increase at a CAGR of 71.57% from $10.92 billion in 2023 to $69.48 billion by 2030.”
Renewable ammonia is produced by converting renewable hydrogen into ammonia through water electrolysis with renewable electricity, which separates nitrogen from air without producing carbon dioxide, making it suitable for general use.
Traditional ammonia production methods are energy-intensive and contribute to greenhouse gas emissions, leading to increased interest in 'green ammonia' production. The International Renewable Energy Agency (IRENA) research suggests renewable energy could provide over 90% of the energy needed to create ammonia by 2050.
Ammonia is a versatile and significant chemical with a global output expected to exceed 190 million tons by 2023. It is primarily used in nitrogen fertilizers, crucial for soil fertility, and as a refrigerant in indoor ice skating rinks.
The green ammonia industry is in its early stages, but research and development are focusing on its production due to increased public awareness and governmental restrictions on carbon dioxide emissions and environmental preservation.
Green ammonia, produced by electrolyzing water to produce hydrogen powered by renewable sources like solar, wind, and hydropower, can significantly reduce the world's reliance on fossil fuels and greenhouse gas emissions. It can benefit various industries like farming, power storage, and the ocean.
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Key Takeaways
In 2022, the proton exchange membrane technology category had the biggest revenue share of more than 44.5%.
In 2022, the transportation category accounted for 30.8% of revenue share.
Through 2030, North America is predicted to increase at a CAGR of 70.45%.
By 2030, the Asia Pacific market is estimated to grow at a CAGR of 123.56%.
Market Dynamics
Growth Drivers
Green ammonia market growth will be aided by increased demand for sustainable fertilizers.
Fertilizer demand is rising globally due to increased agricultural productivity in Asia and Africa, with total fertilizer use increasing by 5.4% from 2021 to 2022, with further increases projected. However, the rise in chemical fertilizers and pesticides has led to soil degradation, necessitating the development of sustainable agricultural technology.
Chemical manufacturers are transitioning to sustainable, environmentally friendly products like green ammonia, which is expected to significantly increase sales in the coming years. This trend is also driven by the increased demand for fertilizers, which are a major ingredient in green ammonia production.
Green ammonia's higher price initially appeals to a small percentage of consumers, but as market acceptability increases, more buyers may adopt this environmentally friendly choice, leading to widespread use in fertilizer and industrial markets, boosting the global green ammonia industry's growth.
Green Ammonia Storage and Transportation Ease to Increase Market Value
Ammonia's higher energy density per volume allows for more energy transfer in less space, and its liquefaction at -33°C makes it easier to store and transport. However, liquid hydrogen requires intense cooling, consuming up to 40% of its energy content for this method.
Green ammonia transport is simpler, safer, and less expensive than green hydrogen transfer. Yara plans to offer ammonia as a marine fuel to a modified North Sea supply vessel by 2024. Tammonia also offers a promising option for exporting sustainable green energy from remote sites to urban areas. Renewable ammonia is expected to become the primary commodity for moving renewable energy between continents in the long run.
Solid Oxide Electrolysis is preferred for producing green ammonia.
Green ammonia is produced through alkaline water electrolysis and proton exchange membrane electrolysis, with solid oxide electrolysis being the most efficient, with SOECs achieving high conversion efficiencies at high temperatures ranging from 700°C to 900°C.
Renewable ammonia synthesis from high-temperature electrolysis, particularly solid oxide electrolysis, uses 30 GJ per ton of ammonia. It is predicted to decrease to 26 GJ per ton in the long run, resulting in a 60% to 70% energy conversion efficiency. This is due to efficient hydrogen ammonia generation and higher heat integration, as well as the use of less expensive electrode materials.
SOECs' reversible mode allows them to switch between hydrogen and electricity production, a feature likely contributing to their preference for green ammonia production.
Competitive Landscape of the Green Ammonia Market
- BASF SE (Germany)
- CF Industries Holdings, In
- Dyno Nobel
- Electrochaea (Germany)
- Enaex Energy
- Enapter (Italy)
- Eneus Energy Limited
- ENGIE (France)
- EXYTRON (Germany)
- Fertiglobe plc
- ACME Group
- Air Products Inc.
- Haldor Topsoe (Denmark)
- Aker Clean Hydrogen
- AquaHydrex (US)
- Ballance Agri-Nutrients
- MAN Energy Solutions (Germany)
- McPhy Energy (France)
- Nel Hydrogen (Norway)
- Origin Energy Limited
- Queensland Nitrates Pty Ltd (Australia)
- Siemens Energy (Germany)
- Starfire Energy (US)
- ThyssenKrupp AG (Germany)
- Uniper (Germany)
- Yara International ASA
Recent Developments in Green Ammonia Market
A Memorandum of Agreement establishing a partnership to find efficient and sustainable solutions for the creation of environmentally friendly ammonia within Iceland was announced by Green Energy and Haldor Topsoe in Nov 2021.
In Aug 2021, the Norwegian businesses Yara Worldwide Aker Fresh Hydrogen, Stat kraft AS, and ASA established a brand-new company called HEGRA with the goal of electrifying and decarbonizing the Heroya ammonia factory and establishing a new sector of the Norwegian economy.
In Mar 2021, the Indian business ACME Company, which produces solar energy, secured a contract with Tatweer of Oman to launch a green ammonia manufacturing plant in Duqm, Oman.
A joint development contract was signed in March 2022 between the solar energy producer ACME Corporation of India and the Norwegian business Scatec ASA to start the manufacturing produce green ammonia in the Sultanate of Oman. The plant may have a yearly volume of production of roughly 100,000 tonnes.
Khalifa Investors Based Abu Dhabi or the KIZAD stated in May 2021 that it would deliberately construct a natural ammonia factory with a manufacturing capacity of roughly 200,000 tonnes per year.
A green ammonia processing unit will be built in Denmark, in Dec 2020, according to plans revealed by wind farm producer Vestas, Danish renewable power producer Skovgaard Investment, and emissions reduction technologies expert Haldor Topsoe.
The world's largest ammonia manufacturing plant in Europe will be built in Denmark, according to the planning processes released in February 2021 by Copenhagen Organization Associates and A.P. Moller-Maersk.
In July 2021, the Irish business Fusion-Fuel, as well as the international construction firm Consolidation Contractor Company announced plans to develop Morocco's "Hevo Ammonia Development," a sustainable clean ammonia initiative.
Regional Insights
The European green ammonia industry is predicted to be the largest in 2022, benefiting from hydrogen fuel development and government measures. The United States is expected to remain a global market with the fastest growth rate for green ammonia production and consumption, controlling a significant portion of the global green ammonia sector by 2030.
The US green ammonia industry is influenced by large enterprises, technology, strict laws, and environmental fertilizers. Rising investments in eco-friendly hydrogen, the growing importance of green ammonia as a hydrogen source, and the development of alternative energy sources are expected to drive demand for sustainable ammonia in the coming years.
Segments Covered in the Green Ammonia Market
Green Ammonia Market By Technology
- Alkaline Water Electrolysis
- Proton Exchange Membrane
- Solid Oxide Electrolysis
Green Ammonia Market By End User
- Transportation
- Power Generation
- Fertilizers
- Others
Green Ammonia Market By Sales Channel
- Direct Sale
- Indirect Sale
Green Ammonia Market By Region
- North America
- Europe
- Asia-Pacific
- Latin America
- Middle East & Africa (MEA)
Frequently Asked Questions:
What is the current size of green ammonia market?
The Green Ammonia Market Predictable at $2.56 billion in 2022, is estimated to increase at a CAGR of 71.57% from $10.92 billion in 2023 to $69.48 billion by 2030.
What will be the CAGR of global green ammonia market?
The global green ammonia market is poised to grow at a CAGR of 71.57% from 2023 to 2030.
Who are the prominent players operating in the green ammonia market?
The major players operating in the green ammonia market are ACME Group, Air Products Inc., Aker Clean Hydrogen, AquaHydrex (US), Ballance Agri-Nutrients, BASF SE (Germany), CF Industries Holdings, In, Dyno Nobel, Electrochaea (Germany), Enaex Energy, Enapter (Italy), Eneus Energy Limited, ENGIE (France), EXYTRON (Germany), Fertiglobe plc, Fusion-Fuel, Green Hydrogen Systems (Denmark), Greenfield Nitrogen LLC, H2U Technologies, Inc., Haldor Topsoe (Denmark), and Others
Which are the driving factors of the green ammonia market?
The green ammonia sales will increase as a result of the rising demand for ecologically friendly fertilizers that aim to reduce negative effects and contamination.
- Introduction
1.1. Research Objective
1.2. Scope of the Study
1.3. Definition
- Research Methodology
2.1. Research Approach
2.2. Data Sources
2.3. Assumptions & Limitations
- Executive Summary
3.1. Market Snapshot
- Market Variables and Scope
4.1. Introduction
4.2. Market Classification and Scope
4.3. Industry Value Chain Analysis
4.3.1. Raw Material Procurement Analysis
4.3.2. Sales and Distribution Channel Analysis
4.3.3. Downstream Buyer Analysis
- COVID 19 Impact on Green Ammonia Market
5.1. COVID-19 Landscape: Green Ammonia Industry Impact
5.2. COVID 19 - Impact Assessment for the Industry
5.3. COVID 19 Impact: Global Major Government Policy
5.4. Market Trends and Opportunities in the COVID-19 Landscape
- Market Dynamics Analysis and Trends
6.1. Market Dynamics
6.1.1. Market Drivers
6.1.2. Market Restraints
6.1.3. Market Opportunities
6.2. Porter’s Five Forces Analysis
6.2.1. Bargaining power of suppliers
6.2.2. Bargaining power of buyers
6.2.3. Threat of substitute
6.2.4. Threat of new entrants
6.2.5. Degree of competition
- Competitive Landscape
7.1.1. Company Market Share/Positioning Analysis
7.1.2. Key Strategies Adopted by Players
7.1.3. Vendor Landscape
7.1.3.1. List of Suppliers
7.1.3.2. List of Buyers
- Global Green Ammonia Market, By Technology
8.1. Green Ammonia Market, by Technology, 2022-2030
8.1.1 Alkaline Water Electrolysis
8.1.1.1. Market Revenue and Forecast
8.1.2. Proton Exchange Membrane
8.1.2.1. Market Revenue and Forecast
8.1.3. Solid Oxide Electrolysis
8.1.3.1. Market Revenue and Forecast
- Global Green Ammonia Market, By End User
9.1. Green Ammonia Market, by End User, 2022-2030
9.1.1. Transportation
9.1.1.1. Market Revenue and Forecast
9.1.2. Power Generation
9.1.2.1. Market Revenue and Forecast
9.1.3. Industrial Feedstock
9.1.3.1. Market Revenue and Forecast
9.1.4. Others
9.1.4.1. Market Revenue and Forecast
- Global Green Ammonia Market, By Sales Channel
10.1. Green Ammonia Market, by Sales Channel, 2022-2030
10.1.1. Direct Sale
10.1.1.1. Market Revenue and Forecast
10.1.2. Indirect Sale
10.1.2.1. Market Revenue and Forecast
- Global Green Ammonia Market, Regional Estimates and Trend Forecast
11.1. North America
11.1.1. Market Revenue and Forecast, by Technology
11.1.2. Market Revenue and Forecast, by End User
11.1.3. Market Revenue and Forecast, by Sales Channel
11.1.5. Rest of North America
11.1.5.1. Market Revenue and Forecast, by Technology
11.1.5.2. Market Revenue and Forecast, by End User
11.1.5.3. Market Revenue and Forecast, by Sales Channel
11.2. Europe
11.2.1. Market Revenue and Forecast, by Technology
11.2.2. Market Revenue and Forecast, by End User
11.2.3. Market Revenue and Forecast, by Sales Channel
11.2.7. Rest of Europe
11.2.7.1. Market Revenue and Forecast, by Technology
11.2.7.2. Market Revenue and Forecast, by End User
11.2.7.3. Market Revenue and Forecast, by Sales Channel
11.3. APAC
11.3.1. Market Revenue and Forecast, by Technology
11.3.2. Market Revenue and Forecast, by End User
11.3.3. Market Revenue and Forecast, by Sales Channel
11.3.7. Rest of APAC
11.3.7.1. Market Revenue and Forecast, by Technology
11.3.7.2. Market Revenue and Forecast, by End User
11.3.7.3. Market Revenue and Forecast, by Sales Channel
11.4. MEA
11.4.1. Market Revenue and Forecast, by Technology
11.4.2. Market Revenue and Forecast, by End User
11.4.3. Market Revenue and Forecast, by Sales Channel
11.4.7. Rest of MEA
11.4.7.1. Market Revenue and Forecast, by Technology
11.4.7.2. Market Revenue and Forecast, by End User
11.4.7.3. Market Revenue and Forecast, by Sales Channel
11.5. Latin America
11.5.1. Market Revenue and Forecast, by Technology
11.5.2. Market Revenue and Forecast, by End User
11.5.3. Market Revenue and Forecast, by Sales Channel
11.5.5. Rest of LATAM
11.5.5.1. Market Revenue and Forecast, by Technology
11.5.5.2. Market Revenue and Forecast, by End User
11.5.5.3. Market Revenue and Forecast, by Sales Channel
- Company Profiles
12.1. ACME Group
12.2. Air Products Inc.
12.3. Aker Clean Hydrogen
12.4. AquaHydrex (US)
12.5. Ballance Agri-Nutrients
12.5.4. Recent Initiatives
12.6. BASF SE (Germany)
12.7. CF Industries Holdings, In
12.8. Dyno Nobel
12.9. Electrochaea (Germany)
12.10. Enaex Energy
- Research Methodology
13.1. Primary Research
13.2. Secondary Research
13.3. Assumptions
- Appendix
14.1. About Us
14.2. Glossary of Terms
