Green Ammonia Market Is Estimated To Witness High Growth Owing To Rising Demand for Carbon-Free Fuel

The Green Ammonia market is estimated to be valued at US$ 1.48 Bn in 2024 and is expected to exhibit a CAGR of 70.3% over the forecast period 2024- 2031, as highlighted in a new report published by Coherent Market Insights.

Key Market Dynamics:

The Green Ammonia Market is primarily driven by rising demand for carbon-free fuel from end use industries like transportation, power generation etc. Green ammonia serves as an ideal carbon-free fuel and hydrogen carrier since it can be synthesized from renewable energy and used in fuel cells or internal combustion engines with zero emissions. Additionally, growing focus on decarbonization of industries is also contributing to the demand for green ammonia as a clean energy alternative.

Key Market Trends:

Adoption of green hydrogen: Green hydrogen produced via electrolysis is a key input in the production of green ammonia. Many countries are promoting the use of green hydrogen to meet their decarbonization goals through hydrogen strategies and roadmaps which in turn is boosting the green ammonia market.

Development of large-scale projects: Major players in the market are investing heavily in large scale green ammonia projects around the world to cater to the growing demand.

For instance, Scatec and Yara have partnered to develop a 300,000 tonne/year green ammonia project in Kenya. Such large scale projects are expected to drive the green ammonia market substantially over the forecast period.

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Market Opportunities

Hydrogen generation through electrolysis

With rising focus on decarbonization and reducing reliance on fossil fuels, production of hydrogen through electrolysis of water is gaining traction. Green ammonia provides an opportunity to store and transport hydrogen produced from renewable power. Electrolysis using renewable power such as solar and wind helps produce carbon-free hydrogen, which can then be used with nitrogen to manufacture green ammonia. The green hydrogen economy is expected to boost demand for green ammonia as a carrier for hydrogen.

CO2 capture from industrial sources

Carbon dioxide captured from industrial sources such as natural gas processing, fertilizer production, and power generation offers an opportunity to utilize it for producing green ammonia. Combining captured CO2 with green hydrogen supports carbon utilization and improves the carbon footprint of ammonia production. As CO2 capture technologies advance, more CO2 will be available for conversion to green ammonia through synthesis using renewable energy. This decentralized production of green ammonia leveraging local CO2 and renewable power resources will open new opportunities.

Key Market Takeaways

The global green ammonia market size was valued at USD 1.48 Bn in 2024 and is anticipated to witness a CAGR of 70.3% during the forecast period. Rapid growth of renewable energy capacity for powering green hydrogen production along with a push for decarbonizing industries is driving the green ammonia market.

By Technology, alkaline electrolysis is expected to hold a 35% share of the green ammonia market by 2031. Alkaline electrolysis has achieved significant commercial scale and deployment advantages over other methods.

In terms of Application, transportation is projected to be the largest segment, accumulating a revenue share of over 35% by 2031. Green ammonia is seen as an ideal carbon-free marine fuel and solution for balancing intermittent renewable power resources.

Regionally, North America dominates the green ammonia space with the US leading investments in green hydrogen and pilot projects. Supportive policies around renewable energy and clean fuels provide an impetus.

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Competitor Insights:

H2U,

Linde

Yara Clean Ammonia

Air Products

Fusion Fuel Green

Recent Developments in Green Ammonia Market

Increasing Investments

Hand-in-hand with rising production, investments in green ammonia projects and technologies have also increased exponentially over the last two years. Total global investments touched $5 billion in 2022 and are forecast to cross $10 billion in 2023 according to analysts at IEA. Both private companies as well as governments are significantly ramping up investments to capitalize on the multi-billion dollar green ammonia market opportunity.

Expanding End-Use Applications

While green ammonia was initially proposed majorly as a carbon-free shipping fuel and for power generation, its demand is now spreading to a diverse set of end-use industries as well. Green ammonia is increasingly being viewed as a versatile energy carrier and feedstock to decarbonize hard-to-abate sectors.

In 2023, major pilot projects are planned to test co-firing of green ammonia in coal power plants and its utilization in steel and cement production to cut carbon footprint. Countries like Australia, Chile, Morocco are assessing large-scale production of green ammonia not just for exports but also for fertilizer manufacturing and agricultural uses locally. Even data center operators have shown interest in using green ammonia fuel cells for back-up power supplies. This diversifying set of applications bodes well for the long-term sustainable growth of the emerging industry.

About Us:

Coherent Market Insights is a global market intelligence and consulting organization that provides syndicated research reports, customized research reports, and consulting services. We are known for our actionable insights and authentic reports in various domains including aerospace and defense, agriculture, food and beverages, automotive, chemicals and materials, and virtually all domains and an exhaustive list of sub-domains under the sun. We create value for clients through our highly reliable and accurate reports. We are also committed in playing a leading role in offering insights in various sectors post-COVID-19 and continue to deliver measurable, sustainable results for our clients.