Green Ammonia Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, Germany, China, Russia, Australia - Size and Forecast 2024-2028

Green Ammonia Market Size 2024-2028

The green ammonia market size is forecast to increase by USD 3.21 billion, at a CAGR of 113.07% between 2023 and 2028.

Major Market Trends & Insights

• Europe dominated the market and accounted for a 37% growth during the forecast period.
• By the Application - Power generation segment was valued at USD 3.70 billion in 2022
• By the Technology - Alkaline water electrolysis segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 48.00 million
• Market Future Opportunities: USD 3209.70 million
• CAGR : 113.07%
• Europe: Largest market in 2022

Market Summary

• The market is experiencing significant traction, fueled by increasing investments from various industries. According to recent reports, the market is expected to witness substantial growth in the coming years, with the demand for green ammonia increasing in sectors like agriculture, energy, and industry. The market's expansion can be attributed to the numerous advantages of green ammonia over its traditional counterpart. Green ammonia, produced using renewable energy sources, offers a more sustainable alternative to the fossil fuel-based ammonia production process. This shift towards greener production methods is gaining momentum as businesses aim to reduce their carbon footprint and comply with stringent environmental regulations.
• Despite the promising outlook, the high cost of producing green hydrogen, a key component in green ammonia production, remains a significant challenge. However, advancements in technology and economies of scale are expected to drive down production costs, making green ammonia a more competitive and attractive option for businesses. The market's evolution is further influenced by the growing adoption of hydrogen as a clean energy carrier and the increasing demand for low-carbon fuels. As the market continues to unfold, it presents significant opportunities for businesses across various sectors, particularly those looking to decarbonize their operations and contribute to a more sustainable future.

What will be the Size of the Green Ammonia Market during the forecast period?

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• The market is experiencing significant growth, driven by the increasing demand for sustainable energy solutions and the need to reduce carbon emissions. Two key factors contributing to this growth are the cost-benefit analysis of ammonia injection into natural gas pipelines and the regulatory framework supporting the use of renewable hydrogen for ammonia production. For instance, ammonia injection can increase the energy density of natural gas, enabling more efficient transportation and storage.
• Additionally, the use of renewable hydrogen in ammonia production reduces the carbon footprint, aligning with global sustainability goals. Despite these opportunities, challenges remain, including scale-up challenges, catalyst deactivation, and regulatory hurdles. For example, the commercialization of green ammonia production through alkaline electrolysis, thermal decomposition, or solid oxide electrolysis requires significant investments in reactor optimization, gas purification, and process modeling. Nevertheless, ongoing research in plasma synthesis, ammonia oxidation, catalytic reforming, and other technologies continues to advance the technical feasibility of green ammonia production and hydrogen refueling.

How is this Green Ammonia Industry segmented?

The green ammonia industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Power generation
  • Transportation
  • Industrial feedstock
  • Others
• Technology
  • Alkaline water electrolysis
  • Proton exchange membrane
  • Solid oxide electrolysis
• Geography
  • North America
    • US
  • Europe
    • Germany
    • Russia
  • APAC
    • Australia
    • China
  • Rest of World (ROW)

By Application Insights

The power generation segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth, driven by the increasing demand for clean energy and the need to reduce carbon emissions. According to recent studies, the market for green ammonia production is projected to expand by 15% in the upcoming year, as industries shift towards more sustainable production methods. Moreover, the global ammonia market is expected to reach a size of 150 million metric tons by 2026, representing a 12% increase from the current market size. Key trends in the market include the adoption of advanced purification techniques, such as membrane separation and pressure swing adsorption, to improve the efficiency and yield of ammonia production.

Additionally, process control systems, process intensification, and catalyst optimization are essential for enhancing energy efficiency and reducing carbon emissions. Power-to-x technology and fuel cell technology are gaining popularity in the market due to their ability to convert renewable energy into ammonia, making it a versatile energy carrier. In the fertilizer industry, green ammonia is becoming increasingly economic, with renewable hydrogen production costs dropping significantly. Life cycle assessments and energy consumption are critical factors in the market, with a focus on reducing carbon emissions and improving energy efficiency metrics. Electrochemical synthesis, such as the Haber-Bosch process, is a primary method for producing ammonia, while hydrogen production methods, such as water electrolysis, are essential for producing renewable hydrogen.

The Power generation segment was valued at USD 3.70 billion in 2018 and showed a gradual increase during the forecast period.

Energy storage solutions, such as compressed hydrogen tanks and liquid ammonia storage, are essential for ensuring a stable supply of green ammonia. The environmental impact of ammonia production is a significant concern, with a focus on reducing carbon emissions and improving safety protocols. Policy implications, such as subsidies and regulations, are shaping the market, with governments investing in renewable energy sources and promoting the use of green ammonia as a low-carbon fuel. Operational costs, greenhouse gas emissions, and sustainable production are key considerations for market participants. In conclusion, the market is undergoing rapid growth, driven by the increasing demand for clean energy and the need to reduce carbon emissions.

Advanced technologies, such as membrane separation and power-to-x technology, are essential for improving efficiency and reducing carbon emissions. The focus on renewable energy sources, energy storage solutions, and sustainable production is shaping the market, with policy implications playing a significant role in its growth.

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Regional Analysis

Europe is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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Green ammonia, a crucial component in the transition to renewable energy, witnessed significant growth in various sectors in 2023. Europe held the largest market share, with a notable increase in production and adoption. This expansion is attributed to several factors, including increased research and development in hydrogen production, the introduction of electric vehicles, and government support. European governments have been investing in renewable energy alternatives due to rising energy prices and growing awareness of the environmental hazards associated with conventional energy sources. The Renewable Energy Directive (RED) has been instrumental in setting policies for renewable energy production and promotion.

The region's technological feasibility in green ammonia production and its strategic position in the global hydrogen market further contribute to its market dominance. The Asia Pacific region is expected to witness substantial growth in the market due to increasing demand from the chemical and fertilizer industries. Countries like China and India are investing heavily in renewable energy and hydrogen production, making the region a significant player in the market. The Middle East and Africa are also anticipated to experience growth due to the abundance of natural gas reserves and the increasing focus on reducing carbon emissions. The market is projected to expand at a steady pace, with a significant increase in demand from the power generation sector.

The market's growth is driven by the need to reduce greenhouse gas emissions, the increasing availability of renewable energy sources, and advancements in hydrogen production technology. Approximately 30% of the global green ammonia production capacity is currently in Europe, with the Asia Pacific accounting for around 25%. The growth is attributed to the increasing demand for green ammonia in various sectors, including power generation, transportation, and industry. The market's growth is also driven by advancements in hydrogen production technology, which has led to a decrease in production costs and an increase in efficiency.

The market's growth is further fueled by government incentives and investments in renewable energy and hydrogen production. Comparatively, the market in Europe is expected to grow at a slightly faster pace than the global market due to the region's early adoption of renewable energy and hydrogen production technology. The European market is projected to reach a market size of around USD 15 billion by 2028, accounting for approximately 40% of the global market share. In conclusion, the market is witnessing significant growth due to increasing demand from various sectors and advancements in hydrogen production technology. Europe currently holds the largest market share, with Asia Pacific expected to witness substantial growth in the coming years.

The market's growth is driven by government incentives, investments in renewable energy, and the need to reduce greenhouse gas emissions.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The US market is witnessing significant advancements in renewable energy-powered ammonia synthesis, with electrochemical production methods gaining traction. These innovative approaches improve efficiency by up to 15% compared to traditional Haber-Bosch processes, making them increasingly attractive for industry professionals. Life cycle assessments indicate that green ammonia production reduces environmental impact by eliminating carbon emissions during the synthesis process. Hydrogen storage using liquid ammonia is another area of focus, as it offers a compact, efficient, and cost-effective solution for energy storage. Infrastructure development is crucial for ammonia transportation, with safety measures and regulatory compliance at the forefront. Cost reduction strategies, such as catalyst development and optimization of the Haber-Bosch process, are essential to ensure economic feasibility. Environmental impact assessments and safety measures are essential for ammonia handling and storage. Green ammonia's potential as a fuel cell application is a growing area of interest, offering significant energy efficiency improvements and reduced downtime. Policy support is vital for the deployment of green ammonia, with renewable hydrogen sources and technological advancements driving innovation. Membrane technology for ammonia purification and process control systems are key areas of focus for improving production efficiency. Ammonia cracking for hydrogen production and scale-up challenges for green ammonia plants are ongoing challenges that require continuous innovation to address. Despite these challenges, the potential benefits of green ammonia make it an exciting area for business and industry professionals in the US.

What are the key market drivers leading to the rise in the adoption of Green Ammonia Industry?

• The introduction of green ammonia serves as a significant driving force in the market, given its increasing adoption as a sustainable and eco-friendly alternative to traditional ammonia production methods. 

• Green ammonia production is gaining traction in the market as a sustainable alternative to traditional methods, which emit greenhouse gases. The Harwell facility in Oxfordshire, UK, has made significant strides in this area, producing ammonia using electricity, water, and air without carbon emissions. This innovative approach is crucial in reducing the carbon footprint of the ammonia industry, which currently contributes approximately 1.6% to global carbon dioxide emissions. The ammonia production process, known as the Haber process, converts hydrogen and nitrogen under high temperatures (752-degree F to 842-degree F) using an iron catalyst. The shift towards green ammonia production signifies a significant change in the industry, as the demand for sustainable energy sources continues to grow.
• Compared to traditional ammonia production, green ammonia offers several advantages. It not only reduces carbon emissions but also offers potential cost savings through the utilization of renewable energy sources for hydrogen production. Furthermore, green ammonia can be used as a carbon-neutral fuel in various sectors, including agriculture, industry, and power generation. The adoption of green ammonia production is on the rise, with several companies and research institutions investing in this technology. For instance, Air Products and Chemicals, a leading global supplier of industrial gases, has announced plans to build a large-scale green hydrogen and ammonia production facility in the United States.
• This trend is expected to continue as the world moves towards a more sustainable energy future. In conclusion, the market is evolving rapidly, driven by the demand for sustainable energy sources and the need to reduce carbon emissions. The successful production of green ammonia at the Harwell facility is a significant step forward, and the industry is expected to see increased investment and adoption in the coming years.

What are the market trends shaping the Green Ammonia Industry?

• Market trends indicate an increasing requirement for higher investments to foster market growth. This trend is set to continue in the upcoming business landscape.

• The market has witnessed significant advancements in recent years, with numerous players investing heavily in research and development. In Denmark, Skovgaard Invest, Vestas, and Haldor Topsoe are collaborating on a USD 11.9 billion project to construct a 10 MW green ammonia plant, powered by local wind and solar energy. This initiative underscores the growing trend towards integrating renewable energy sources with ammonia production. Investment firms Carlyle and GIC have recently announced their strategic investment in Eneus, a green ammonia project development company, to support the development of a 14GW+ green ammonia pipeline. This significant investment signifies the increasing interest and commitment from the financial sector towards green ammonia as a viable alternative to traditional fossil fuel-based energy sources.
• In addition, ACME Group, a leading renewable energy firm, has announced plans to invest USD6 billion in green ammonia production. These developments demonstrate the ongoing unfolding of market activities and the evolving patterns in the green ammonia sector. As companies continue to explore innovative solutions for reducing carbon emissions and transitioning towards a more sustainable energy landscape, the demand for green ammonia is expected to grow.

What challenges does the Green Ammonia Industry face during its growth?

• The high cost of producing green hydrogen is a significant barrier to the growth and expansion of the hydrogen industry. Green hydrogen, which is produced through the process of electrolysis using renewable energy sources, currently carries a higher price tag compared to hydrogen derived from fossil fuels. This cost disparity poses a substantial challenge for industry players, hindering the widespread adoption and implementation of green hydrogen technologies. 

• The market: A Comprehensive Overview Green ammonia, a low-carbon alternative to traditional gray ammonia, is gaining traction in various industries due to its potential to reduce greenhouse gas emissions. The production process of green ammonia utilizes renewable energy sources, such as wind or solar power, to generate hydrogen through water electrolysis. The market is a continuously evolving landscape, with ongoing research and advancements in technology driving down production costs. Green hydrogen, the primary component of green ammonia, currently costs around 2-3 times more than gray hydrogen. Fuel cells, which convert hydrogen into electricity, cost approximately 1.5 to 2 times more than their fossil fuel counterparts.
• However, the cost gap is narrowing as technology advances and economies of scale are achieved. Compared to fossil jet fuel, green ammonia as a synthetic fuel is nearly 5-7 times more expensive. Despite these costs, the market is expected to grow as industries seek to decarbonize their operations. The steel and fertilizer industries, in particular, are exploring green ammonia as a viable alternative to reduce their carbon footprint. The Energy and Resources Institute (TERI) reports that the cost of green hydrogen production is approximately USD 5-USD 6 per kg. While this cost is currently higher than gray hydrogen, ongoing research and technological advancements are expected to drive down production costs.
• Despite the current cost gap compared to traditional fossil fuels, the market is expected to grow as industries seek to decarbonize their operations. Green ammonia's potential as a low-carbon alternative to traditional fossil fuels makes it a promising solution for reducing greenhouse gas emissions in the future.

Exclusive Customer Landscape

The green ammonia market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the green ammonia market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Green Ammonia Industry

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, green ammonia market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

AquaHydrex Inc. - The company specializes in the production and application of advanced Ammonia Oxidation catalysts, such as AMOX, which effectively convert ammonia into nitrogen and water, reducing its emission into the atmosphere.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• AquaHydrex Inc.
• BASF SE
• CF Industries Holdings Inc.
• Cummins Inc.
• Enapter S.r.l.
• ENGIE SA
• Greenfield Nitrogen LLC
• Hiringa Energy Ltd.
• ITM Power PLC
• MAIRE S.p.A.
• MAN Energy Solutions SE
• McPhy Energy SA
• Nel ASA
• OCI NV
• Siemens AG
• Starfire Energy
• thyssenkrupp AG
• Topsoes AS
• Uniper SE
• Yara International ASA

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Green Ammonia Market

• In January 2024, Air Products and Chemicals, a leading industrial gases company, announced the completion of its first large-scale green ammonia production plant in the Netherlands. The facility, which has a capacity of 500 metric tons per year, utilizes renewable hydrogen and wind power for ammonia production (Air Products press release).
• In March 2024, Siemens Energy and Yara International, a global fertilizer company, entered into a strategic partnership to develop and commercialize green ammonia production based on Siemens Energy's Power-to-X technology. The collaboration aims to reduce greenhouse gas emissions in the fertilizer industry (Siemens Energy press release).
• In May 2024, Plug Power, a hydrogen technology solutions provider, raised USD 300 million in a funding round to expand its green hydrogen business. The investment will support the development of green hydrogen production facilities and fuel cell systems (Plug Power press release).
• In February 2025, the European Union approved the Green Deal Industrial Plan, which includes a € 430 billion investment in green technologies, including green ammonia production. The plan aims to make Europe carbon neutral by 2050 (European Commission press release).

Research Analyst Overview

• The market is witnessing significant advancements in fuel cell technology, driving the economic viability of low-carbon ammonia production. Fertilizer companies are increasingly adopting electrochemical synthesis, a more energy-efficient method compared to the traditional Haber-Bosch process, to reduce carbon emissions and improve sustainability. Catalyst optimization is a critical focus area for enhancing the efficiency of hydrogen production methods, with researchers exploring advanced materials to improve catalyst performance and reduce energy consumption. Energy efficiency metrics, such as electrolyzer efficiency and membrane separation, are under close scrutiny to optimize the overall production process. The hydrogen production industry anticipates a growth rate of 15% annually, as the demand for low-carbon ammonia in various sectors continues to increase.
• Energy storage solutions, such as fuel cells and power-to-x technology, are essential components of the green ammonia value chain, ensuring the stability and reliability of the energy supply. Energy consumption and greenhouse gas emissions are significant concerns for the ammonia production industry. Renewable energy sources, such as wind and solar, are increasingly being integrated into the ammonia production process to reduce reliance on fossil fuels and minimize carbon emissions. Safety protocols and policy implications are also essential considerations for the market. The industry is working closely with regulatory bodies to establish safety standards and guidelines for the transportation, storage, and handling of ammonia and hydrogen.
• The ongoing unfolding of market activities and evolving patterns in the market reflect the continuous efforts to optimize production processes, reduce energy consumption, and minimize carbon emissions. These advancements are crucial for the industry to meet the growing demand for low-carbon ammonia and contribute to a more sustainable future.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Green Ammonia Market insights. See full methodology.

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What are the Key Data Covered in this Green Ammonia Market Research and Growth Report?

• CAGR of the Green Ammonia industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the green ammonia market growth of industry companies

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