Green Ammonia Market Outlook - 2031
The global green ammonia market size was valued at $0.02 billion in 2021, and green ammonia industry is projected to reach $6.5 billion by 2031, growing at a CAGR of 80.1% from 2022 to 2031.
Green ammonia is ammonia that is produced with hydrogen obtained through the electrolysis of water, powered by renewable energy sources such as solar, wind, and hydropower. Green ammonia can be used in several industries such as agriculture, energy storage, and marine.
Carbon emissions have been significantly rising globally, which lead to increase in greenhouse gas (GHG) emissions. For instance, in Asia-Pacific region carbon dioxide emission increase from 15,238 metric ton (Mt) in 2016 to 15,856 Mt in 2019. Since the manufacturing of one ton of ammonia releases on an average 2.867 tons of CO2, ammonia plays a significant role in the emission of GHGs. To reduce carbon emissions worldwide, the governments of various nations have set a number of goals and projects. For instance, by 2030, the European Union wants to cut carbon emissions by 55%. The market for green ammonia is anticipated to grow during the projected period due to increased initiatives to reduce carbon emissions. The green ammonia market is expected to grow as a result of increased investments in the construction of green ammonia facilities. For instance, in August 2021, Acme Solar Holdings Ltd announced plans to build a green ammonia facility worth $3.5 Billion in Duqm to supply green ammonia to Europe, and Asia.
During the projection period, demand for green ammonia is expected to increase due to use of maritime fuel. Due to high sulfur and diesel fuel consumption by ships, the shipping sector was responsible for around 2.5% of the world's greenhouse gas emissions in 2019. By using cleaner fuels, the maritime sector is taking a number of measures to cut GHG emissions. For instance, the International Maritime Organization launched IMO 2020 on January 1, 2020, with the goal of enhancing air quality and safeguarding human health. According to IMO 2020, fuel oil used on ships travelling outside of emission control zones shouldn't have more than 0.50% m/m sulphur content. During the forecast period, this is anticipated to present the green ammonia market with profitable potential.
Segments Overview
The green ammonia market is segmented on the basis of technology, application, and region. Depending on technology, the market is categorized into proton exchange membrane, alkaline water electrolysis, solid oxide electrolysis and others. On the basis of application, the market is categorized into transportation, power generation, and industrial feedstock. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Green Ammonia Market By Technology
On the basis of technology, alkaline water electrolysis is projected to have the largest market share in the green ammonia market during the forecast period. The most well-known, reliable, and conventional method of electrolysis is alkaline water electrolysis (AWE). The electrolyte is an aqueous, alkaline solution of potassium or sodium hydroxide. It is a technology that is reasonably developed and economical.
Green Ammonia Market By Application
Based on application, the power generation segment is projected to have the largest market share in the green ammonia market, in 2021. The type of ammonia gas made from renewable sources that is cleaner is called green ammonia. Electrolysis can be utilized to create carbon-free ammonia, which can serve as a sustainable fuel for power generation, from surplus renewable energy produced in remote regions. Renewable energy source installation is rising on a global scale.
Green Ammonia Market By Region
The European region is estimated to have the largest market size in 2021, in terms of volume. Opportunities for the expansion of the green economy are projected to be provided by an increasing number of fuel cell projects and government initiatives for the deployment of fuel cells in the residential and commercial sectors are expected to provide opportunities for the growth of the green ammonia market in the region. For instance, Green Fuel and Haldor Topsoe signed an agreement to partner for the identification of efficient and scalable technologies for the production of green ammonia in Iceland.
Competitive Analysis
Major players operating in the global green ammonia market include, ACME Group, BASF SE, Ballard power system, CF Industries holdings, Enapter, Engie, Fluropositive Corp, Hiringa Energy, Hy2gen, Haldor Topsoe, Itm Power, Nel ASA, Siemens, Stamicarbon, Starfire Energy, ThyssenKrupp, Uniper, and Yara International.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the green ammonia market analysis from 2021 to 2031 to identify the prevailing green ammonia market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the green ammonia market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global green ammonia market trends, key players, market segments, application areas, and market growth strategies.
Green Ammonia Market Report Highlights
| Aspects | Details |
 By Technology |
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 By Application |
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 By Region |
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 Key Market Players | Hiringa Energy, ITM Power, AMMPower Corp, Hyport Duqm, FUELPOSITIVE Corporation, Siemens AG, Queensland Nitrates Pty Ltd, Enapter, CF Industries Holdings, Inc., Ballard Power Systems, NEL ASA, BASF SE, Engie, Haldor Topsoe, ThyssenKrupp, Uniper, Starfire Energy, Yara International |
Analyst Review
As per the CXO perspective the green ammonia market is still in the development phase. Increased R&D activities are underway to develop green ammonia, which is expected to increase due to rising public concern and government regulations related to carbon emissions and the protection of environmental health. Green ammonia also has the potential to have a big impact by reducing the world's reliance on fossil fuels and helping to lower greenhouse gas emissions.
With a greater emphasis being placed on reaching net-zero carbon emissions on a global scale, the adoption of green, eco-friendly, and sustainable technologies opens up enormous funding and sales prospects. North America, Europe, and a few Asian nations were the main areas to see this trend. In addition, green ammonia has a minimal to moderate influence on the fertilizer and transportation fuel industries; however, the impact is predicted to rise in the near future with greater production of green ammonia.
Rise in applications across numerous industries bolstering green ammonia market growth and demand for long-term storage of renewable energy are the key factors boosting the Green ammonia market growth.
The market value of Green ammonia in 2031 is expected to be $6.5 billion
ACME Group, BASF SE, Ballard power system, CF Industries holdings, Enapter, Engie, Fluropositive Corp, Hiringa Energy, Hy2gen, Haldor Topsoe, Itm Power, Nel ASA, Siemens, Stamicarbon, Starfire Energy, ThyssenKrupp, Uniper, and Yara International
Power Generation industry is projected to increase the demand for Green ammonia Market
The green ammonia market is segmented on the basis of technology, application, and region. Depending on technology, the market is categorized into proton exchange membrane, alkaline water electrolysis, solid oxide electrolysis and others. On the basis of region, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
Increase in concern toward reducing carbon emissions is the Main Driver of Green ammonia Market.
As the market gradually reopens, demand for green ammonia is expected to increase in the short term due to increased demand from the shipping industry. Moreover, green hydrogen production initiatives are likely to increase the demand for green ammonia in the Middle East, Africa and Europe regions, further boosting the market in the coming years.
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