Market Definition
Ammonia, as a gas, exhibits widespread utility in producing agricultural fertilizers, however, comprises high carbon content. Hence, the agriculture industry, alongside others, is adopting alternative procedures for producing ammonia. With the massive pressure on the agriculture industry to feed the exponentially rising population, the sector is formally adopting numerous color codes associated with its development. Green ammonia production is the production of ammonia in a 100% renewable & carbon-free manner, where one way might include using hydrogen from water electrolysis & nitrogen separated from the air.
Besides, backed by the benefits of green ammonia, the industry's future is anticipated to be lucrative for different end-users & players. These perks include its easy storage in bulk as a liquid, making it an ideal chemical store for renewable energy. In addition, green ammonia can also be burnt in an engine or act as a fuel cell to generate electricity, demonstrating zero-carbon fuel. In fact, the maritime industry is anticipated to be an early adopter of these elements as a replacement for fuel oil in engines.
Market Insights
The Global Green Ammonia Market is projected to grow at a CAGR of around 54% during the forecast period, i.e., 2022-27. The market is driven by the gradual focus shift on reducing greenhouse gas (GHG) emissions & growing emphasis on the adoption of energy-efficient technologies in manufacturing ammonia.
As industries & people are becoming more conscious & shifting preferences toward sustainable products, the demand & utilization of green ammonia is swiftly gaining traction & is set to attain an opportunistic future across different locations.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2017-20 |
| Base Year: 2021 | |
| Forecast Period: 2022-27 | |
| CAGR (2022-2027) | 54% |
| Regions Covered | North America: USA, Canada, Mexico |
| Europe: Germany, The UK, France, Norway, Denmark, The Netherlands, Russia, Others | |
| Asia-Pacific: China, India, Japan, New Zealand, Australia, Rest of Asia-Pacific | |
| Others | |
| Key Companies Profiled | Siemens AG, ThyssenKrupp AG, Nel ASA, GreenHydrogen ApS, Enapter S.r.l., Starfire Energy Inc., Engie SA, Yara International, Wesfarmers Chemicals, Energy & Fertilisers Ltd. etc. |
| Unit Denominations | USD Million/Billion |
Another prominent factor contributing to the significant growth of the market is its anticipated high demand in the maritime industry as an alternative to regular ocean fuel. This demand is set to witness an upsurge owing to the negligible sulfur content & zero greenhouse gas emissions capabilities of green ammonia, demonstrating itself as a reliable alternative in the industry.
Moreover, growing governmental & private expenditures & fast-falling cost of producing renewable power are the other aspects shaping the industry dynamics. It, in turn, is also generating lucrative opportunities for the leading players to increase their production & distribution capacities and cater to the burgeoning demands worldwide. For instance:
Besides, the advent of cutting-edge technologies paired with a sustainable source of energy in the extraction of hydrogen, resulting in the production of free ammonia, is also bolstering the market growth. In addition, an ampler growth prognosis for the Green Ammonia Industry can be expected owing to the widespread applications in end-use sectors, including power generation and transport.
Furthermore, the widespread acceptance of green ammonia in producing eco-friendly fertilizers scales up the market trajectory. With the considerable introduction of green hydrogen in a fossil-based ammonia plant & many upcoming multi-GW renewable ammonia plants already under construction, the Green Ammonia market shall observe substantial growth in the forthcoming years.
