Green Ammonia Market

Global Green Ammonia Market

According to a research analysis conducted by ChemView Consulting, in 2022, the worldwide green ammonia market was worth US$ 24.6 Mn. It is expected to grow at a CAGR of 78.6% over the forecast period. The market is expected to hit US$ 6,780.0 Mn by 2032 end.

Over the next assessment period, a combination of factors such as implementing of zero-carbon policies worldwide, favorable government policies and subsidies, and the high cost of producing conventional grey ammonia compared to green ammonia.

Some of the major green ammonia projects are as follows:

• Dyno Nobel — Moranbah, Australia
• Yara — Pilbara, Australia
• Enaex — Antofagasta, Chile
• Proton Ventures / Siemens / Yara — Netherlands

Green ammonia demand is being fueled by stricter emissions regulations and a focus on zero-carbon energy goals. In 2032, the green ammonia market is expected to account for 3.0% – 3.5% of the global ammonia market.

Furthermore, current estimates place the forecast growth outlook for the fertilizer end-use segment at 75.4% between 2022 and 2032. This is due to a growing preference for green ammonia over conventional ammonia in fertilizer production.

Market Dynamics

Which Factor is driving the demand for the green ammonia market?

The market is growing due to the rapid expansion of end-use industries such as fertilizer, transportation, power generation, stringent environmental regulations, and the growing popularity of green fertilizers.

Furthermore, the market is expected to grow faster due to increasing technological advancements, increased public and private investment, and the rapidly decreasing cost of renewable energy generation.

Furthermore, the expanding scope of green ammonia across various industrial applications will boost green ammonia sales over the next ten years.

Green ammonia is becoming more popular in the transportation sector as a shipping and marine fuel due to its zero-carbon emissions and zero-sulfur content, which is expected to drive the green ammonia market growth.

What are the major opportunities in Green Ammonia Space for Manufacturers?

• Consistent demand for Green Ammonia as a maritime fuel demonstrates vast future opportunities.
• Producers and renewable sectors can form strategic alliances to invest in technologies that produce green ammonia using renewable energy.
• Companies can take advantage of favorable government policies aligned with climate goals to increase the domestic output of green hydrogen and ammonia manufacturing.
• The research efforts of ammonia manufacturers and renewable energy companies will be critical in transforming the prospects of electrochemical production and chemical looping processes for green ammonia.

Segment-Wise Analysis

Why Is Alkaline Water Electrolysis the Most Preferred Production Process?

Alkaline water electrolysis (AWE) is expected to grow at the fastest CAGR of 74.1% during the forecast period due to its well-known, reliable, and conventional method of electrolysis.

Alkaline water electrolysis is a type of electrolyzer with two electrodes that operate in a liquid electrolyte solution of potassium or sodium hydroxide. Because of the lower cost of catalysts and higher gas purity, it is increasingly being used in the production of green ammonia.

Furthermore, alkaline water electrolysis has higher durability due to an exchangeable electrolyte and lower anodic catalyst dissolution, which is expected to drive segment growth.

Why is the demand for green ammonia expected to remain high in the fertilizer sector?

The fertilizer segment currently dominates the global green ammonia market by end use and is expected to grow at a rate of approximately 67.9% between 2022 and 2032. This is due to the increasing use of green ammonia in the production of environmentally friendly fertilizers, as well as increased government efforts to promote fully carbon-free agriculture activities.

Region-Wise Analysis

• During the forecast period, the United States is expected to remain one of the world’s fastest growing markets for the production and consumption of green ammonia. Green ammonia market growth in the United States is being influenced by the presence of leading green ammonia manufacturing companies and key technology providers, the implementation of stringent regulations, and the growing trend of using green fertilizers.
• Due to significant green ammonia project activities in the country, Australia & New Zealand (ANZ) is expected to remain one of the world’s leading consumers of green ammonia. According to FMI, the ANZ green ammonia market will grow at an estimated 1% between 2022 and 2032. Due to stringent regulations for the adoption of renewable resources in the region, the region has invested significant resources in developing a green hydrogen economy.
• The European Green Ammonia Market is dominated by a few globally established players, including Siemens (Germany), NEL Hydrogen (Norway), ThyssenKrupp (Germany), ITM Power (UK), and McPhy Energy (France). Green ammonia plants in Europe are currently profitable, despite the fact that such facilities were not expected to compete with grey or blue ammonia plants until the mid-2032s.

Competition Analysis

Leading players in the green ammonia market are focusing on various growth strategies, such as establishing new manufacturing facilities, launching new green ammonia projects, strengthening distribution channels, and forming alliances and partnerships to expand their presence and cater to the growing demand for green ammonia globally.

Some of the key developments that have taken place in the Green Ammonia market include:

• In 2022, LSB Industries, a fertiliser manufacturer based in the United States, signed agreements with thyssenkrupp Uhde USA and Bloom Energy in to produce approximately 30,000 tonnes of green ammonia per year at LSB’s Pryor, Oklahoma facility. The engineering design for converting a small portion of Pryor’s existing conventional ammonia capacity to green ammonia will be developed by thyssenkrupp Uhde.
• In April 2021, Green Fuel and Haldor Topsoe signed a Memorandum of Understanding (MOU) to identify efficient and scalable technologies for green ammonia production in Iceland. The agreement also allows the two companies to investigate other business opportunities in green ammonia.
• In November 2021, Green Fuel and Haldor Topsoe signed a Memorandum of Understanding (MOU) to collaborate on developing efficient and scalable green ammonia production technology in Iceland.
• In August 2021, Yara International ASA (OTCMKTS: YARIY), Aker Clean Hydrogen, and Statkraft AS formed HEGRA to electrify and decarbonize the ammonia factory in Heroya, therefore establishing a new industry in Norway.

A list of some of the key players present in the market are:

• CF Industries Holdings, Inc
• BASF SE
• Yara International ASA
• Maire Tecnimont S.p.A.
• ACME Group
• Fertiglobe plc
• NEL Hydrogen
• ThyssenKrupp AG
• ITM Power
• Holder Topsoe
• Green Hydrogen Systems
• Greenfield Nitrogen LLC
• Siemens

Market Segments Covered in Report

By Technology:

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

By End-user:

• Fertilizer
• Transportation
• Power Generation
• Industrial Feedstock
• Others

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Global Green Ammonia Market 2022-2032: Report Coverage and Highlights

• Assessment of the historical and current market size (2017-2021), market projections (2022-2032), and its contribution to the parent market
• Key drivers, restraints, opportunities, and key emerging trends impacting market growth
• Predictions on critical supply, demand, and technological trends and changes in consumer behavior
• Value chain analysis (list of manufacturers, distributors, end-users, average profitability margins, etc.)
• Segment-wise, country-wise, and region-wise market analysis
• Competition mapping, market share analysis, key strategies adopted by top players, and competitive tactical intelligence
• Key product innovations and regulatory framework
• Covid-19 impact on the market and how to navigate
• Strategic market analysis and recommendations on crucial winning strategies