The Global Green Ammonia Market size was valued at US$ 150.47 million in 2022 and is anticipated to reach US$ 15,070 million by 2028 and increase at a CAGR of 115.5% between 2023 and 2028.
The ongoing COVID-19 epidemic has had an impact on industries all across the world. Fossil power generation has experienced enormous problems in terms of income, projects, CAPEX, and installations in the current environment. Renewable energy is the only segment that has been unaffected by the epidemic; however, some of the ongoing renewable energy projects have been placed on pause. Renewable energy developments have a direct impact on the green ammonia industry. The green ammonia market is still in its early stages, with no commercial production yet. All of the projects are in the pilot or demonstration stage, with most scheduled to be operational in the coming years. As a result, COVID-19 will have a mild impact on the global green ammonia market during 2023 - 2028.
Market Overview:
The rising investments in green fuel and the wide-scale plans for green energy are the main characteristics responsible for the global green ammonia market growth. Primarily, Ammonia is a nitrogen-hydrogen chemical with the formula NH3. Moreover, Ammonia is a colourless gas with a pungent odour. In addition, it is a stable binary hydride and the simplest pnictogen hydride. It is declared chiefly as a frequent nitrogenous waste, especially among aquatic creatures. It contributes considerably to terrestrial organisms' nutritional needs by serving as a precursor to 45 per cent of the world's food and fertilizers. Ammonia is also utilized in many commercial cleaning products and is a building block for producing many pharmaceutical medicines, either directly or indirectly. It is gathered mainly by air and water displacement downward. The maximum utilization of hydrogen from water electrolysis and nitrogen extracted from the air is one of the primary methods of producing green Ammonia. These are then put into the Haber process, also termed the Haber-Bosch process, which is entirely powered by renewable energy. The Haber process produces Ammonia, NH3, by combining hydrogen and nitrogen at high temperatures and pressures.
Market Drivers:
Ammonia is the world's second most-produced chemical used in various sectors, including fertilizer, polymers, explosives, textiles, insecticides, and dyes. However, conventional ammonia production relies on fossil fuels, such as natural gas or coal to obtain hydrogens. As a result, ammonia production accounts for more than 1% of world greenhouse gas emissions and 5% of global natural gas consumption. The steam reforming method produces around 72 per cent of the total Ammonia generated worldwide. Therefore, there is a massive amount of carbon dioxide emissions. Green Ammonia is made with renewable energy rather than natural gas or coal. As a result, it is declared as an efficient method of lowering greenhouse gas emissions. The Haber-Bosch electrochemical process manufactures Ammonia without emitting any greenhouse gases. A lot of businesses throughout the world are transitioning to ecological operations to reduce greenhouse gas emissions. This change is driving the green ammonia market. Because of the growing use of green Ammonia as a maritime fuel, the demand for green Ammonia has a bright future. Presently, the shipping industry accounts for 3% of global greenhouse gas emissions, owing primarily to ships' high diesel and sulfur fuel use.
On the other hand, the maritime industry must reduce emissions by switching to greener energy sources. The sulfur limit in transportation oil used on board ships has been cut to 0.5 per cent m/m under the International Maritime Organization (IMO) 2020 regulations (mass by mass). This will shift toward higher-quality marine fuels, providing potential for the green ammonia market to expand.
Market Restraints:
The costly capital nature of green ammonia plants is now the most significant factor impeding market expansion. The average lifespan of a modern ammonia plant is 15 to 20 years. The typical CAPEX cost per tonne of Ammonia produced in a Greenfield project ranges between USD 1,300 and USD 2,000. Green Ammonia, on the other hand, is 1.5 times more expensive than natural gas-based ammonia factories. According to a study, Natural gas or coal, which accounts for 75 per cent of the plant's operating costs, is the principal operating cost in ammonia manufacturing. In addition, the expense of electrolyzers raises the price of operations in green ammonia production. Therefore, these are the primary factors responsible for the slowdown of the global green ammonia market growth during the forecast period.
Furthermore, the use of green Ammonia is still in its infancy. Electrochemical synthesis, photochemical synthesis, and chemical looping directly produce Ammonia from water and nitrogen. However, such methods are fraught with considerable technological difficulties that necessitate time and R&D expenditures. As a result, the majority of ammonia producers continue to use traditional techniques of production. The biggest issue with green Ammonia is a lack of knowledge among chemical manufacturers. As a result, the largest chemical companies in China, Japan, and Russia continue to use natural gas steam methanation technology for ammonia production.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2022 – 2028 |
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Base Year |
2022 |
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Forecast Period |
2023 - 2028 |
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CAGR |
115.5% |
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Segments Covered |
By Technology, End User, and Region. |
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Various Analyses Covered |
Global, Regional and Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Siemens, MAN Energy Solutions, ITM Power, Nel Hydrogen Solutions, Yara International, Haldor Topsoe, CF Industries Holdings, Inc., ThyssenKrupp AG, Nanjing Kapsom Engineering Limited, Maire Tecnimont SpA, and Others. |
Market Segmentation:
Based on technology, the solid oxide electrolysis segment holds the highest green ammonia market share during 2022 - 2027. Because of the growing need for hydrogen systems to reduce carbon emissions, solid oxide electrolysis technology has been identified as a new revenue stream for the green ammonia market. Green hydrogen is produced using the SOE process using extra power supplied from renewable sources. Using SOE technology, green hydrogen can be synthesized further in an ammonia synthesis plant to make green Ammonia. Furthermore, the process produces green hydrogen, which may be stored and utilized as a fuel cell, and again shifted back to electricity when required. When output exceeds demand, this permits power to be stored. As a result, the growing demand for hydrogen fuel cells boos the global green ammonia market in the near future.
Based on end-users, the power generation segment dominates the global green ammonia market and continues to propel the global green ammonia market growth during the forecast period. Surplus renewable energy generated in remote regions can make carbon-free Ammonia, which can be used as a sustainable fuel for power generation, utilizing the electrolysis process. Furthermore, the market for green Ammonia is growing due to the requirement for long-term storage of renewable energy supplied by isolated wind farms and solar panels.
Market Regional Analysis:
The Global Green Ammonia Market Report includes the segmentation of Regions:
During 2022 - 2027, Europe is anticipated to hold the most prominent global green ammonia market, owing to the rise of green hydrogen projects in Germany and the Netherlands. Furthermore, favourable government regulations and activities to manufacture green hydrogen are projected to boost green ammonia demand.
The Asia-Pacific green ammonia market is expected to rise at a substantial CAGR of 9.5 per cent during the forecast period. The most prominent factor fuelling the growth of the Asia-Pacific green ammonia market is the growing preference for sustainable energy sources for power generation and transportation fuel.
Green ammonia's widespread use as a replacement for GHG-emitting materials and consistent government regulations to promote green ammonia production are significant factors driving the market's expansion in the North American area.
Market Key Players:
The companies covered in the report include:
Frequently Asked Questions
The Global Green Ammonia Market is expected to grow with a CAGR of 115.5% between 2023-2028.
The Global Green Ammonia Market size is expected to reach a revised size of US$ 15,070 million by 2028.
Nel Hydrogen Solutions, Yara International, and Haldor Topsoe are the three Green Ammonia Market key players.
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