Green Ammonia Market Expected to Reach $6.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Green Ammonia Market," The green ammonia market was valued at $0.02 billion in 2021, and is estimated to reach $6.5 billion by 2031, growing at a CAGR of 80.1% from 2022 to 2031.

Ammonia is the second-most widely produced commodity chemical around the globe and is mostly utilized as a fertilizer in the agriculture industry, a sector that is under increasing scrutiny due to its environmental impact. The production of green ammonia is gaining prominence due to growing demand for making process 100% renewable and carbon-free. Ammonia could come to the rescue by easily capturing, storing, and transporting hydrogen for use in emission-free fuel cells and turbines. Efforts are also undergoing to combust ammonia directly in power plants and ship engines. Several chemical companies are developing green ammonia, a route to ammonia in which hydrogen derived from water electrolysis powered by alternative energy replaces hydrocarbon-based Hydrogen, making the production of ammonia virtually carbon dioxide–free. The Haber-Bosch process is a widely used method to produce ammonia on a commercial scale which can be extracted again via a thermal decomposition and separation process. In addition to the main use of ammonia in the fertilizer industry, green ammonia holds the potential to play a role in other end-use applications. The Haber-Bosch process is a widely used method to produce ammonia on a commercial scale which can be extracted again via a thermal decomposition and separation process. In addition to the main use of ammonia in the fertilizer industry, green ammonia holds the potential to play a role in other end-use applications.

On the basis of technology, the green ammonia market is segmented into proton exchange membrane, alkaline water electrolysis, and solid oxide electrolysis. In the year 2021, due to the higher operating time capacity of this technology and low capital cost, the alkaline water electrolysis segment is expected to hold the largest share of the global market and expand at the fastest pace during the study period

 Depending upon various application, the market is segmented into transportation, power generation, and industrial feedstock. Power generation segment is expected to dominate the market in the next few years. The demand for green ammonia as a sustainable fuel is rapidly increasing, which will provide a positive outlook to the green ammonia market in the upcoming years. Consistently rising demand for green ammonia as a maritime fuel demonstrates vast opportunities for the future.

Among different regions, Europe, followed by the Middle East, Africa, and North America, is expected to dominate the green ammonia market across the globe in the forecast period due to the increasing number of investments and projects in the regions. Initiatives to produce green hydrogen is likely to augment the demand for green ammonia across the MEA and Europe, which will further boost its market in the upcoming years.

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.

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 findings of the study

• Based on technology, the alkaline electrolyzer segment emerged as the global leader with more than 63.2% share in 2020.
• By application, power generation segment dominated the global green ammonia market with around 39.0% global market share in 2021.
• By region, Europe dominated the market with highest revenue shares of $7.2 million in 2021.

Impact of Covid-19 on Global Green Ammonia Market

In 2020, the global green ammonia market was negatively impacted by the spread of COVID-19. Stringent restrictions and nationwide lockdowns imposed by government agencies to curb the spread of the deadly virus are having a major impact on downstream industries. Global supply chains have been severely affected. However, demand for fertilizers from agribusiness remained strong during the COVID era. 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.