Green Ammonia Market Revenue to Cross USD 20,919 Million, Globally, by 2033

Introduction

The Global Green Ammonia Market is witnessing significant growth as the world increasingly shifts towards sustainable and low-carbon solutions. Valued at approximately USD 74.48 Million in 2023, the market is projected to reach around USD 20,919 Million by 2033, reflecting a remarkable compound annual growth rate (CAGR) of 78.2% during the forecast period from 2023 to 2032. This rapid expansion is driven by the growing emphasis on reducing greenhouse gas emissions and transitioning to cleaner energy sources. Green ammonia, produced using renewable energy sources like wind or solar power, offers a promising alternative to conventional ammonia, which is typically derived from fossil fuels.

However, the market faces several challenges, including high production costs and technological barriers related to scaling up green ammonia production. Despite these hurdles, recent developments indicate significant progress. Innovations in electrolysis and advancements in renewable energy technologies are enhancing the feasibility of green ammonia as a sustainable solution. Major investments and government incentives are also playing a crucial role in accelerating market growth. As companies and governments worldwide commit to ambitious climate goals, the green ammonia market is expected to become a key player in the global transition towards a more sustainable future.

The green ammonia market has recently seen significant advancements, with notable activities from key players like Nel Hydrogen, Siemens Energy, MAN Energy Solutions, and ThyssenKrupp AG. Nel Hydrogen, a prominent player in the hydrogen industry, has launched a new series of electrolyzers designed to increase the efficiency of green ammonia production. Their latest electrolyzer technology promises to reduce production costs by 20%, making green ammonia more competitive with traditional ammonia.

Siemens Energy has been actively expanding its portfolio through strategic partnerships and funding initiatives. The company recently secured a $100 million investment to develop a green ammonia pilot plant in partnership with several renewable energy firms. This project aims to demonstrate scalable green ammonia production and is expected to begin operations by 2025.

MAN Energy Solutions has also made strides by entering into a joint venture with ThyssenKrupp AG to build a new green ammonia production facility. This collaboration, worth approximately $150 million, focuses on integrating MAN’s advanced ammonia synthesis technology with ThyssenKrupp’s expertise in process engineering. The facility is anticipated to start production by 2026 and is expected to significantly boost the global green ammonia supply.

Statistics

Power-to-ammonia process can achieve the highest system efficiency of over 74%. The power-to-ammonia achieves the highest system efficiency of over 74%, much higher than that of biomass-to-ammonia (44%) and methane-to-ammonia (61%).
The biomass-to-ammonia reaches above 450 $/ton ammonia production cost with a payback time of over 6 years, higher than those of methane-to-ammonia (400 $/ton, 5 years).
Global ammonia production has been constantly growing in the last decades, reaching 137 million tons in 2012. By 2018, the global production of ammonia had registered at 140 million tons, with China accounting for 31.4%, followed by Russia (10%), the US (8.9%), and India (7.8%).
Two-thirds of ammonia are currently synthesized from natural gas-derived hydrogen worldwide; while in China, 97% of ammonia is synthesized from coal-derived hydrogen.
The ammonia production cost ranges from 743 to 748 $/ton with an energy efficiency of 31%.natural gas and biomass-based ammonia production plants are on average 65.8% and 41.3%.
South America’s first green ammonia plant with an annual output of 2,000 tons, undertaken by KAPSOM, was completed and ready for shipment.According to statistics, clean energy accounts for a very high proportion of Colombia’s energy structure, and hydropower accounts for about 70% of the country’s energy supply.
Colombia plans to invest approximately $290 million annually in its energy system from 2015 to 2050.
Colombia is the only South American country with coastlines along both the Caribbean Sea and the Pacific Ocean. Its maritime territory covers an area of 9.2866 million square kilometers.
In the case of Colombia, 12% of the country’s greenhouse gas emissions come from this industry.
Moreover, this project reduces carbon emissions by 6,400 tons compared to traditional coal-based ammonia synthesis and 3,600 tons compared to natural gas-based ammonia synthesis during the production process.
The initial phase, which has a production capacity of 600 tonnes per day (TPD), is expected to commence commercial operations by 2027. Phase 2 will expand the capacity to 1,200 TPD by early 2028. The project is projected to achieve its maximum production capacity of 1.1 million tonnes per annum of green ammonia by 2030.
Hygiene is in the process of developing several green hydrogen plants in India and intends to invest $2.5 billion in green hydrogen and green ammonia projects over the next three years.
An increase in the installed capacity of Hydroelectricity in Nepal in 2022 by 122% compared to that in 2021 is a major milestone in power production in the country.
The green ammonia facility will have a production capacity of 1 million tons per annum.
The project aims to provide direct employment opportunities to about 3,500 people and indirect jobs to more than 10,500 people.
Avaada Group plans to invest around $5 billion in the project.
CO2, offering a significant advantage over fossil fuels. Shipping is responsible for nearly 3% of global CO2 emissions.
By some estimates, ammonia production is responsible for roughly 2% of fossil fuel use, worldwide, and releases more than 400 million of tons of CO2, representing more than 1% of total annual global emissions of the greenhouse gas.
The process requires a temperature of more than 400 °C and pressures at or exceeding 200 atmospheres.
researchers predict that at current rates the global production of ammonia will likely double in the next 30 y, from about 150 million metric tons in 2019–350 million by 2050.
Worldwide, two-thirds of the 149 carbon capture systems that had been proposed to go online by 2020 have been abandoned or indefinitely delayed. Progress has been slow, despite tens of billions of dollars invested into sequestration projects.
Ammonia is the second-largest chemical produced globally, with a capacity of 183 million tons in 2019 and projected to reach 688 million tons by 2030.
Currently, approximately 80% of the manufactured ammonia is used as a precursor for fertilizer production, supporting half of global food production.
South Korea, with a population of approximately 52 million, boasts a high per capita gross domestic product of $32,000, making it a highly developed industrialized nation.
In 2020, South Korea had more than 10,000 fuel cell cars and more than 50 fuel cell buses on the road and plans to increase this number to 6.2 million in 2040.
The Indian government-owned Solar Energy Corporation of India (SECI) has invited bids from ammonia producers for the supply of 539,000 tonnes/year of green ammonia. government’s INR 174.9 billion ($2.09 billion) Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme.
Morocco’s OCP Group consumes substantial amounts of ammonia to produce its fertilizer. The company has grand plans, involving a $13 billion capital expenditure, to ramp up renewable energy production and green hydrogen.
The company consumed around 1.6 million tonnes of ammonia in 2019. Spending on ammonia in 2021 accounted for around 21% of its purchases that year. It is also a substantial electricity consumer, at around 4 TWH, or 10% of Morocco’s total consumption.
We are the largest ammonia importer in the world accounting for roughly 10% of global trade.”
In 2022, El Fali explained to Energy Voice, imports cost $1.9bn. Furthermore, costs varied wildly for grey ammonia. At one point it reached $1,200 per tonne, before dropping to $300 and is currently around $600.
Almost 3 million tonnes of conventional ammonia are produced in Germany every year as a raw material for the chemical industry and especially for fertilizers.
Around 6 million tonnes of CO2 are released in the process – and thus need to be abated in the future.
Agricultural Fertilizer dominates the demand for fossil fuel ammonia at 88% of the total 16,000,000 metric tonnes used.
Once operational, the project is expected to produce 110,000 tons of green hydrogen, 600,000 tons of green ammonia, and 60,000 tons of green methanol annually.
As a raw material for fertilizer production, around 180 million tonnes of ammonia are already produced annually and are transported worldwide by pipeline, rail, road, and ship via an established infrastructure.
With a hydrogen content of around 18%, it offers a great compromise between energy density and production costs and, unlike other synthetic fuels, does not cause any CO2 emissions for the consumer.
The target of CO2 emission reduction by 2050, following the Paris Climate Agreement, is 90% compared to the CO2 level of 1990. The haber-Bosch process is the main industrial procedure for the production of ammonia today and about 80% of the global ammonia is consumed by the fertilizer industry.
But it’s absurdly common, making up 78% of our atmosphere. And plants need nitrogen. It makes up 1% to 5% of the mass of the plant, depending on the species.
eight billion people apparently effortlessly, with such an abundance of food that we throw a full third of it, 2.5 billion tons, away annually.
Most recently the average export price was US$524 or C$694 per ton, implying that the cost of manufacturing was below that point. The import price averaged around US$1,000 or C$1,325 over the year with fluctuations from over US$2,000 to under US$500.
Let’s assume manufacturing costs of C$600. With cheap natural gas, steam reformation, and no carbon capture, manufacturing hydrogen costs around US$1.00 or C$1.30 per kg. Hydrogen is only 18% of the mass of ammonia despite there being three times as many hydrogen atoms as nitrogen atoms because hydrogen is so light.
At 18% hydrogen, that would require 180 to 540 tons per day. Let’s start at the small end of the large scale, and assume we wanted to build an integrated hydrogen-ammonia plant that would produce 180 tons of hydrogen and turn it into 1,000 tons of ammonia daily.

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Emerging Trends

Technological Innovations: There have been significant advancements in green ammonia production technologies. For example, researchers are developing more efficient electrolysis methods, such as proton exchange membrane (PEM) electrolysis, which promises higher efficiency and lower costs compared to traditional alkaline water electrolysis. These innovations are making green ammonia production more viable and scalable.
Integration with Renewable Energy: Green ammonia is increasingly being integrated with renewable energy sources. Projects are focusing on combining green ammonia production with wind and solar power to enhance the sustainability and economic feasibility of the process. This trend is expected to drive down costs and improve the overall efficiency of green ammonia production.
Pilot Projects and Demonstrations: Several pilot projects and demonstration plants are being launched worldwide to showcase green ammonia’s potential. For example, in Europe, notable projects like the “H2A” initiative are demonstrating the feasibility of green ammonia in real-world applications. These projects are crucial for validating technology and attracting further investment.
Government Support and Policies: Governments are introducing policies and incentives to support the green ammonia market. This includes subsidies for green ammonia projects, tax incentives for renewable energy integration, and funding for research and development. Such support is crucial for accelerating market growth and overcoming initial cost barriers.
Increased Investment: There is a growing influx of investment in green ammonia projects from both the public and private sectors. Companies and governments are investing in R&D, infrastructure, and scaling up production facilities. This trend is helping to drive technological advancements and increase the availability of green ammonia.
Partnerships and Collaborations: Strategic partnerships between technology providers, energy companies, and governments are becoming more common. These collaborations aim to pool resources, share expertise, and drive the adoption of green ammonia. For instance, recent joint ventures between MAN Energy Solutions and ThyssenKrupp AG are focusing on advancing green ammonia technologies.

Use Cases

Transportation Fuel: Green ammonia is increasingly being explored as a sustainable fuel alternative for transportation. It can be used in internal combustion engines, fuel cells, and as a maritime fuel. For instance, the global shipping industry is considering green ammonia as a low-emission fuel to meet stricter environmental regulations. Projects like the “AMMONIA-FUELED SHIP” are demonstrating its potential, with an estimated reduction in CO2 emissions by up to 90% compared to conventional marine fuels.
Power Generation: Green ammonia can be used for power generation in gas turbines or as a hydrogen carrier. It offers a way to store and transport renewable energy efficiently. According to recent studies, using green ammonia in power generation can reduce greenhouse gas emissions by approximately 70% compared to fossil fuels. Notably, Siemens Energy is developing ammonia-fired gas turbines to integrate green ammonia into power plants, aiming for a 50% reduction in CO2 emissions by 2030.
Industrial Feedstock: Green ammonia serves as a key feedstock in various industrial processes, including the production of fertilizers, plastics, and chemicals. It is a cleaner alternative to conventional ammonia, which is typically produced using fossil fuels. The global fertilizer industry, which relies heavily on ammonia, is increasingly adopting green ammonia to reduce its carbon footprint. Green ammonia could help cut nitrogen fertilizer production emissions by up to 80%, according to industry reports.
Energy Storage: Green ammonia is being explored as an energy storage solution due to its high energy density and ease of storage. It can be used to store excess renewable energy and later converted back into electricity using fuel cells or combustion. This application is gaining traction as renewable energy sources like wind and solar create fluctuating supply. It is estimated that green ammonia can store energy at a density of about 11.5 MWh per ton, making it an efficient storage medium.
Agricultural Applications: In agriculture, green ammonia is used as a cleaner alternative to traditional ammonia-based fertilizers. Its adoption helps reduce the environmental impact of farming practices. Green ammonia can also be utilized in controlled-release fertilizers, which enhance nutrient use efficiency and reduce runoff. The use of green ammonia in fertilizers is expected to reduce nitrogen loss by up to 30%, improving overall agricultural sustainability.

Key Players Analysis

Nel Hydrogen: Nel Hydrogen is actively advancing the green ammonia sector by developing cutting-edge electrolyzer technology to produce green hydrogen, a key component in green ammonia production. Their latest innovations focus on improving the efficiency and scalability of electrolyzers, which can reduce production costs and enhance the feasibility of green ammonia as a sustainable alternative. Recent projects include a significant collaboration with major energy companies to implement these technologies in large-scale green ammonia production facilities.

Siemens Energy is making significant strides in the green ammonia sector by investing in and developing ammonia-fired gas turbines and integrating green ammonia into power generation. Their projects aim to demonstrate the viability of using green ammonia as a low-emission fuel, with plans to reduce CO2 emissions by 50% in the coming years. Siemens Energy’s initiatives include a $100 million investment in a green ammonia pilot plant, showcasing their commitment to advancing green ammonia technologies.

MAN Energy Solutions is actively advancing green ammonia technology through strategic projects and partnerships. The company is focusing on developing ammonia-powered engines and fuel cells, which promise to significantly cut emissions in maritime and industrial applications. Recently, MAN Energy Solutions announced a joint venture with ThyssenKrupp AG to build a new green ammonia production facility.

ThyssenKrupp AG is playing a crucial role in the green ammonia sector by investing in large-scale production facilities and technological innovations. The company recently announced a $200 million investment to build a green ammonia plant in Europe, leveraging its expertise in process engineering to enhance production efficiency. This facility will utilize ThyssenKrupp’s advanced technology to significantly reduce costs and emissions.

ITM Power PLC is a key player in the green ammonia sector, focusing on producing green hydrogen through electrolysis. This hydrogen is then used to create green ammonia, which is easier to transport and store. ITM Power is involved in several projects aimed at expanding the green hydrogen infrastructure, crucial for the transition to sustainable energy. Their efforts include developing large-scale electrolyzer systems and participating in the EU’s hydrogen strategy to build a robust hydrogen ecosystem by 2025.

Hydrogenics is actively involved in the green ammonia sector through its advanced electrolyzer technology, which is crucial for producing green hydrogen—a key component in green ammonia production. Hydrogenic electrolyzers are designed to improve the efficiency and cost-effectiveness of hydrogen production from renewable energy sources. This technology supports the green ammonia industry by making the hydrogen generation process cleaner and more economical. Their innovations are helping to scale up green ammonia production and contribute to sustainability goals.

Green Hydrogen Systems is advancing the green ammonia sector by developing efficient electrolyzers that convert renewable energy into green hydrogen. This hydrogen is then used in the Haber-Bosch process to produce ammonia, which significantly reduces carbon emissions compared to traditional methods. Their focus is on optimizing energy efficiency and integrating with renewable energy sources to lower production costs. The company’s technology supports the transition to sustainable ammonia production, vital for meeting global decarbonization goals.

McPhy Energy is also making strides in the green ammonia sector by providing advanced electrolyzer technology for hydrogen production. Their systems enable the use of renewable energy to produce green hydrogen, which is then utilized in ammonia synthesis. McPhy’s focus on scalable and cost-effective solutions helps drive the adoption of green ammonia, contributing to a sustainable energy future.

Electrochaea focuses on using its proprietary biocatalysis technology to produce green ammonia from renewable energy sources. This process involves capturing CO2 and converting it into ammonia, significantly reducing greenhouse gas emissions. Electrochaea’s technology is considered efficient and scalable, contributing to sustainable energy solutions. Their work aligns with the growing demand for carbon-neutral fertilizer production, positioning them as a key player in the green ammonia market

EXYTRON specializes in green hydrogen and green ammonia production, utilizing advanced technologies for efficient energy conversion. Their integrated systems focus on renewable energy storage and conversion to green ammonia, supporting carbon-neutral energy solutions. EXYTRON’s approach addresses the need for sustainable fuel alternatives, making them a significant contributor to green ammonia.

AquaHydrex is actively involved in the green ammonia sector through its innovative electrolysis technology. The company focuses on producing hydrogen efficiently and sustainably, which is essential for green ammonia production. Their proprietary electrolyzer design leverages advanced materials and engineering to split water into hydrogen and oxygen using renewable energy sources. This approach significantly reduces the carbon footprint compared to traditional methods. AquaHydrex’s technology is crucial in enabling the production of green hydrogen, a key ingredient for green ammonia.

Enapter is a leader in green ammonia production, utilizing its AEM (Anion Exchange Membrane) electrolysis technology. Their AEM Multicore electrolyzer can produce around 450 kilograms of green hydrogen daily, making it cost-effective for industrial-scale green hydrogen production. This hydrogen can then be used to create green ammonia, supporting the decarbonization of sectors like transportation and energy. Enapter’s technology is modular and scalable, making it suitable for various applications and contributing to the global push for sustainable energy.

BASF SE is working with Yara Clean Ammonia to develop a large-scale, low-carbon blue ammonia production facility on the U.S. Gulf Coast. The plant aims to capture about 95% of CO2 emissions produced during ammonia synthesis, storing it underground to reduce the carbon footprint. This facility will help meet the growing demand for environmentally friendly ammonia and support BASF’s sustainability goals of reducing CO2 emissions by 25% by 2030 and achieving net-zero emissions by 2050.

Conclusion

The green ammonia market is experiencing robust growth driven by increasing investments in renewable energy and green hydrogen infrastructure. Technological advancements in electrolysis and ammonia synthesis, along with strong government support and regulatory initiatives, are accelerating the market’s expansion. Key regions such as North America and Europe are leading the way, thanks to supportive policies and abundant renewable resources. Asia-Pacific also presents significant growth opportunities due to rapid industrialization and a focus on clean energy solutions.

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