Global Green Ammonia Market 2021
- Market Report
- ID: GCE962GB
- Delivery Time: 1 Business Day
- Tag: Green Ammonia
Market Overview
The green ammonia market is projected to witness substantial growth, with revenues estimated to reach $18,801 million by 2031, growing at a CAGR of 23.2% during the period from 2024 to 2031. Green ammonia refers to ammonia produced using renewable energy sources such as wind, hydro, and solar power. The production process involves electrolyzing water to obtain hydrogen and then combining it with nitrogen through the Haber-Bosch process. Green ammonia plays a vital role in addressing the challenges of food production for a rapidly increasing global population and serves as a carbon-free energy source.
Several factors are driving the growth of the green ammonia market. Firstly, there is a growing awareness of the importance of utilizing green chemicals and a strong focus on reducing carbon emissions. Technological advancements related to green ammonia usage are also contributing to market growth. Additionally, the demand for green fuel, especially in maritime transportation, is on the rise. The need for minimizing greenhouse gas emissions further creates potential market demand for green ammonia. Increasing awareness about green ammonia can be achieved through awareness programs.
| Product Type | Market Report |
|---|---|
| No. of Pages | 189 |
| Release Date | June 2022 |
| Base Year | 2021 |
| Forecast Period | 2022-2031 |
| Market Size | USD 18801 Mn incremental growth between 2021 and 2026 |
| Market Segments | End-Use Sector, Production Technology, Region |
| Region | Global |
| No. of Companies Mentioned | 18 |
The market’s growth is expected to be fueled by stringent regulations on carbon emissions and the global transition towards zero-carbon energy goals. Energy security from low-carbon intermittent sources necessitates sustainable long-term energy storage and suitable carriers, which can be achieved through green ammonia. Furthermore, the decreasing cost of hydrogen production via electrolysis will drive demand for green ammonia. However, the high installation cost of integrated green ammonia infrastructure may hinder market growth in the future.
As the green ammonia market is still in its development phase, ongoing research and development activities are focused on producing greener alternatives due to public concern and government regulations surrounding carbon emissions and environmental protection. Green ammonia has the potential to significantly reduce global reliance on fossil fuels and contribute to greenhouse gas emission reduction.
The shift towards green and sustainable technologies presents significant sales and financing opportunities, particularly in regions such as North America, Europe, and some Asian countries. The impact of COVID-19 on the global green ammonia market has been minimal, given its limited commercialization. The market is expected to benefit from the post-pandemic recovery, with increased consumption as planned projects come online.
Several drivers are propelling the demand for green ammonia, including increased consumer awareness and preference for sustainable products, growing investments in green ammonia production, and stringent regulations related to carbon emissions. However, challenges remain, such as limited commercialization of green ammonia and high production costs. Despite these limitations, the green ammonia market is poised for significant growth in the coming years.
Market Segmentation
The market is segmented based on various factors, including end-use sector, production technology, and region.
Segmentation by End-Use Sector
Power Generation and Energy Storage
Agriculture
Transportation
Industrial Feedstock
Others
Segmentation by Production Technology
Alkaline Water Electrolysis (AWE)
Proton Exchange Membrane (PEM)
Solid Oxide Electrolysis (SOE)
Segmentation by Region
North America – U.S., Canada, and Mexico
Europe – Germany, France, Italy, Spain, and Rest-of-Europe
China
U.K.
Asia-Pacific and Japan – Japan, India, South Korea, Australia, and Rest-of-Asia- Pacific
Rest-of-the-World
During the forecast period (2024-2031), agriculture is expected to be the largest end-use sector for green ammonia. This can be attributed to the growing demand for nitrogenous fertilizers and increased agricultural activities driven by the need to feed a growing population. Green ammonia, designed for use in carbon-neutral fertilizer products, plays a crucial role in decarbonizing the food value chain and is seen as a forthcoming climate-neutral fertilizer.
The negative impact of over-fertilization on soil, surface water, and groundwater due to mineral utilization diffusion and nitrogen overload is a concern in sustaining the world’s growing population and rising food demand. To address this issue, farmers are striving to minimize their ecological footprint while maximizing crop yield. Customized fertilizers with precise nutrient content and optimum formulation are required to meet crop needs under specific climatic and geographical conditions. Farmers are increasingly turning to green ammonia for extensive decarbonization of agriculture, as its utilization as a fertilizer can help reduce carbon emissions.
According to a report by the Institute for Energy Economics and Financial Analysis (IEEFA), adopting green ammonia can not only assist in minimizing India’s fertilizer subsidy burden but also enhance energy self-sufficiency by reducing dependence on expensive imports of liquefied natural gas (LNG) for fertilizer production.
Among different production technologies, solid oxide electrolysis is expected to dominate the market during the forecast period. This technology is widely used due to its high efficiency, especially at higher operating temperatures where it exhibits favorable thermodynamic properties. Solid oxide electrolysis also requires the lowest MW/h per metric ton of ammonia produced, making it more efficient than fossil-fueled processes.
Europe is poised to lead the green ammonia market throughout the forecast period. The region boasts a significant number of green ammonia manufacturers and is driven by increased demand from various end-use applications, technological advancements, and stringent environmental regulations aimed at reducing greenhouse gas emissions. The replacement of grey ammonia facilities with green ammonia is a global trend due to growing environmental concerns. By 2030, it is projected that green ammonia will account for approximately 7% to 12% of the total ammonia market, replacing existing grey ammonia facilities and welcoming new green ammonia projects.
Competitive Landscape
The selection of the profiled companies was based on inputs obtained from primary experts, comprehensive analysis of company coverage, product portfolio, and market penetration.
Key companies profiled in this report include Aker Clean Hydrogen, CF Industries Holdings, Inc., Air Products Inc., Haldor Topsor A/S, Fusion-Fuel, HY2GEN AG, Eneus Energy Limited, Hive Energy, Siemens Energy, H2U Technologies, Inc., Fertiglobe, ACME Group, Enaex Energy, Dyno Nobel, Origin Energy Limited, Yara International ASA, Iberdrola, S.A., Ballance Agri-Nutrients.
Recent Industry Developments
In March 2021, the ACME Group of India, a solar power producer, entered into an agreement with Tatweer, an Omani company, to establish a green ammonia production facility in Duqm, Oman.
In March 2022, the ACME Group of India signed a joint venture agreement with Norway-based company Scatec ASA to initiate a green ammonia production facility in the Sultanate of Oman. The facility is expected to have an annual production capacity of approximately 100,000 tons.
In May 2021, Khalifa Industrial Zone Abu Dhabi (KIZAD) announced plans to strategically construct a green ammonia plant with an annual production capacity of around 200,000 tons.
In December 2020, Haldor Topsoe, a specialist in carbon reduction technology, along with Skovgaard Invest, a Danish renewable energy developer, and Vestas, a wind turbine manufacturer, announced the construction of a green ammonia production plant in Western Jutland, Denmark.
In February 2021, Copenhagen Infrastructure Partners and A.P. Moller – Maersk unveiled their strategic plans to develop Europe’s largest green ammonia production facility in Esbjerg, Denmark.
In July 2021, Fusion-Fuel, an Ireland-based company, and Consolidated Contractors Group, a global construction company, announced their collaboration in building a new green ammonia project called the Hevo Ammonia Project in Morocco.
Key Questions Answered
What are the key factors and trends influencing the green ammonia market?
How has the global green ammonia market been affected by the COVID-19 pandemic?
What measures have existing market players taken to enhance their market position?
What are some of the primary strategies employed by new entrants in the green ammonia market?
Which production technologies and end-use sectors dominate the market, and what can be expected of their performance in the coming years?
What are the recent global developments in the green ammonia industry, and how have consumption patterns been affected?
