Market Definition
Green ammonia is a clean version of ammonia, made in an environmentally friendly way. It is produced using techniques that are sustainable & do not emit carbon. Its production requires green hydrogen as a raw material that passes through the electrolysis process & the source of energy used is solar & wind, as a result, there is no emission of carbon.
Market Insights
The Middle East & Africa Green Ammonia market is projected to grow at a CAGR of around 42.27% during the forecast period, i.e., 2025-30. The production, usage, and end-user industries are in developmental stages in the Middle East & African region. The companies such as ADNOC, AMEA Group, etc., have announced & are working on developing their dedicated production facilities that would be commercialized during the forecast period of 2025-2030.
Furthermore, the growth within the end-user industries, such as the increasing potential of the manufacturing industry, wastewater treatment facilities, etc., is anticipated to boost the demand in the coming years. Along with this, agriculture & fertilizers is also anticipated to boost the demand as countries like Saudi Arabia & Oman are among the top exporters of fertilizers globally. The availability of this gas within the region would allow the fertilizer manufacturing companies to transition towards it in place of conventional ammonia to reduce the carbon emissions from the food & agriculture sector.
Further, the growing environmental concerns & decarbonization of industries are among the other factors resulting in escalating the adoption of green ammonia. As per the Royal Society, close to 1.8% of global carbon emission is released from ammonia production alone. Additionally, to reduce carbon emissions & achieve net neutrality the adoption of this gas is anticipated to advance within industries such as shipping, transportation, chemicals, etc. For it, both public & private players are actively engaging in developing & expanding the production facilities, and massive investments are being announced to achieve this goal, thereby creating a positive market outlook for growth in the coming years.
Market Dynamics
Key Driver: Growing Inclination of the Government Towards Clean Energy Sources
Considering the menace of climate change, the government in the region is constantly working on promoting clean energy sources & the discovery of alternative energy which are sustainable & eco-friendly. As a result of which, the government itself is collaborating with private players to create an ecosystem for the development and production of green ammonia. For instance:
The favorable government policies are creating a way for private players to enter & invest in the production projects to cater to the upcoming demand from manufacturing & food processing industries & agriculture. Along with it, countries like the UAE & Saudi Arabia aim to emerge as a leading player within the production domain & export it to the neighboring countries & diversify their economic profile.
Similarly, in 2021, Saudi Arabia announced the production facility in NEOM City with the capacity of producing 1.2 million tons of this gas annually. The project is being developed by ACWA & Air Product and is expected to be operationalized in the year 2025 to serve domestic requirements as well as to be exported to the countries in the region.
Possible Restraint: High Capital Requirement to Restrict the Production of Green Ammonia
The production of this gas is a highly capital-intensive process because it is still in its developmental stage, along with it, the infrastructural capabilities required for the production are also limited. Further, huge initial capital is needed to set up a production unit, due to which traditional ammonia becomes cost-effective in comparison to green ammonia, hence would result in slowing down adoption among the end users.
Growth Opportunity: Growing Focus of the Government to Improve Food Security in the Region
The countries in the Middle Eastern region suffer from a shortage of food & grains. These countries are highly import dependent to fulfill their food security requirements. However, countries such as the UAE, Saudi Arabia, etc., are constantly working on improving their food security for it to achieve this, R&D is being done to examine the viability of smart agriculture in the region. Smart agricultural practices would generate an increased demand for fertilizers to maintain the fertility of the soil & for better yield production. These fertilizers would require ammonia as a raw material, the availability of green ammonia would allow the fertilizer manufacturers to shift to it as it is more environmentally friendly & cuts down carbon emissions. Along with the growth in agricultural practices, the demand for herbicides & pesticides would also grow, thereby resulting in the requirement of ammonia to produce herbicides and pesticides. For instance:
In line with this plan, the UAE-US fund has been created to support farmers to switch to climate sustainable agriculture in 2022. The investment amount has doubled from USD4 billion to USD8 billion to support vertical farming, hydroponics, and aquaculture. The development within the agriculture sector of the country would generate the requirement for fertilizers, herbicides, and pesticides, which require ammonia for their production. The availability of green ammonia would allow fertilizers & pesticide manufacturers to switch to clean ammonia, thereby increasing its adoption within the agriculture sector.
Key Trend: Massive Investments by the Private Players
Currently, the production of green ammonia is in the developmental stage in the Middle East & Africa region & is expected to be commercialized in the region by 2025. Currently, major power companies are investing heavily in establishing their production facility in countries like the UAE, Saudi Arabia, Qatar, and South Africa.
These developments within the clean energy sector aim at decarbonizing the industries within the region to attain the global carbon emission norms. Thus, industries like shipping, fertilizer, and chemicals, are anticipated to transition to cleaner fuels, hence escalating the demand.
Market Segmentation
Based on Technology:
Of them all, Alkaline Water Electrolysis is the most widely used technique to produce green ammonia, as it is comparatively easy & cost-effective. Additionally, AWE technology is suitable to expand the scalability of producing hydrogen to produce this gas. For instance, in Saudi Arabia, the production facility of the NEOM City uses Alkaline Water Electrolysis (AWE) technique to produce 1.2 million tons of green ammonia, thereby creating a positive market outlook for growth.
Moreover, the AWE production method uses saline or brackish water at the production stage, which is most suitable for the Middle East region, as it already has limited availability of freshwater. Owing to these reasons adoption of the AWE production technique is anticipated to have the largest share of the market.
Based on Application:
Here, Shipping Fuels is expected to have the leading share in the application of green ammonia as the countries within the middle eastern region are actively engaged in the import & export of goods, as a result of which the shipping industry is very prominent across the region. Additionally, the industry is one of the largest emitters of carbon globally. As per the World Bank, the shipping industry alone is responsible for realizing close to 3% of global carbon emissions, due to which the industry is expected to switch to ammonia to be used as a fuel to decarbonize the industry.
Further, it has been mandated for the global shipping industry to reduce 40% of its carbon emissions by the year 2030, owing to which shipping companies in the Middle Eastern region are anticipated to boost the adoption of this gas, thereby augmenting its demand in the coming years.
Regional Projection
Geographically, the expands across:
Within the Middle East & Africa region, the UAE is projected to register maximum demand for green ammonia in the coming years, mainly due to the extensive presence of the shipping industry in the region, which could emerge as the major end-user. Along with it, the constant promotion of sustainable & smart agriculture in the country would generate the demand for fertilizers, pesticides & herbicides, and the manufacture the ammonia is required. Hence, the availability of this gas would allow fertilizer producers to easily switch to it, thereby expanding its demand in the coming years.
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Frequently Asked Questions
A. The Middle East & Africa Green Ammonia Market is expected to grow at a CAGR of around 42.27% during 2025-2030.
A. The growing interest of the government in promoting clean energy is expected to drive the Middle East & Africa Green Ammonia Market during 2025-2030.
A. The top players in the Middle East & Africa Green Ammonia Market are Yara International, ADNOC, AMEA Power, Helios Industries, HIVE Energy, Linde Engineering, and ENOC Group.
A. Within the application type segment, Shipping is anticipated to hold a dominant share in the Middle East & Africa Green Ammonia Market during 2025-2030.
A. The rising investments by the private players are the key trend shaping the growth of the Netherlands’ Shared Mobility Market during 2025-2030.
A. The emphasis of the government on promoting sustainable & smart agriculture is expected to drive the Middle East & Africa Green Ammonia Market through 2030.
A. High costs involved in setting up the production unit are the possible restraints affecting the growth of the Middle East & Africa Green Ammonia Market during 2025-2030.
