PMR’s Green Ammonia Market Report Predicts it will Take a Leap over the Upcoming Years in the Light of Streaming Demand for Applications in Power Generation, and Agriculture
Industry: Chemicals and Materials
Published Date: July-2024
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 157
Report ID: PMRREP33588
The green ammonia market is anticipated to rise from US$232.8 Mn in 2024 to US$14,761.3 Mn by the end of 2033. The market for green ammonia is expected to reach a CAGR of 71% during the projection period from 2024 to 2033.
Key Highlights of the Market
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Attributes |
Key Insights |
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Market Size (2024E) |
US$232.8 Mn |
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Projected Market Value (2033F) |
US$14,761.3 Mn |
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Global Market Growth Rate (CAGR 2024 to 2033) |
71% |
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Historical Market Growth Rate (CAGR 2019 to 2023) |
147.3% |
Green ammonia refers to ammonia produced by an eco-friendly and sustainable approach. It often uses renewable energy sources, such as wind, solar, or hydropower.
In this process, renewable energy sources power the water electrolysis, which separates hydrogen and then combines it with nitrogen to produce ammonia.
Compared to traditional ammonia production, green ammonia production contributes to lower carbon emissions and helps opt for environmentally sustainable practices.
The green ammonia industry is fueled by a wide range of factors. One of the most influential factors is increasing climate change and environmental concerns. These concerns are pushing the several sectors to opt for sustainable methodologies.
Governments are providing subsidies and subsidies to promote green technologies. The demand for sustainable energy and renewable resources is also driving the market.
Advances in electrolysis and nitrogen synthesis make green ammonia manufacturing a viable alternative. This convergence positions the market for future growth.
The demand for sustainable energy and renewable resources is also driving the market. Further, advances in electrolysis and nitrogen synthesis make green ammonia manufacturing a viable alternative.
Similarly, environmental awareness, convergence of policies, and technological innovations position the market for future growth.
The green ammonia market shares have grown significantly over the past few years, driven by factors such as climate change, environmental concerns, and government policies.
This boost was due to demand for sustainable energy and renewable resources and technological advances in electrolysis and nitrogen synthesis processes. The green ammonia market size expanded at a CAGR of 147.3% during the historical period from 2019 to 2023.
The market is likely to experience rapid growth, attributing increasing investments by public and private organizations, increasing technological advancements, and notably lower prices of renewable energy generation.
In addition to this, the growing scope of green ammonia in multiple industries is expected to stimulate green ammonia sales in the upcoming years. As the green ammonia fuel is playing a vital role in the transportation industry by offering zero-carbon emissions and zero sulfur content, propelling the green ammonia market size notably.
Government's Regulatory Initiatives
Regulatory initiatives established by governments across the world are playing a major role in propelling the global green ammonia market growth. Traditional ammonia production is responsible for releasing over 400 million tons of CO2 annually, representing more than 1% of total global greenhouse gas emissions.
The awareness about ecological problems associated with conventional methods of ammonia production is revealed, which is pushing government bodies to establish novel approaches for sustainability.
For example, the Ministry of New and Renewable Energy in India has launched the National Green Hydrogen Mission. This mission undertakes competitive bidding for the procurement of green hydrogen and green ammonia.
The mission also aims to develop a suitable regulatory framework for the certification of green hydrogen and its derivatives produced from renewable energy sources. With this initiative, the government aims to produce 5,50,000 MT of green ammonia.
Substantial Policy Support
With rising concerns regarding climate change and a shift towards more sustainable strategies, governments, bodies, and regulatory entities are implementing a wide range of policies to foster green ammonia production.
Further, to lower carbon emissions, global obligations like the Paris Agreement offer financial incentives and stringent regulations.
Green ammonia companies involved in its production can earn subsidies, tax allowances, and grants, which attract and encourage businesses to adopt more sustainable practices while offering economic support.
For example, the Ministry of New and Renewable Energy (MNRE) in India has laid down the incentive implementation framework for the production and supply of green ammonia.
The framework includes a competitive selection process and adherence to the National Green Hydrogen Standard set by MNRE. This promotes sustainable production with less use of hydrogen.
This financial support lowers the economic obstacles faced in the shift towards green ammonia and promotes investment in research and developments to lower the cost and increase the efficiency of green ammonia manufacturing processes.
Inadequate Infrastructure
One of the main factors impeding the green ammonia shares is insufficient infrastructure. The production and distribution of green ammonia require infrastructure that is robust and specialized.
However, in several regions, these green ammonia plants and production facilities are either inadequate or underdeveloped.
Traditional ammonia manufacturing is heavily dependent on specified supply chains; in addition, the green ammonia industry faces challenges related to electrolysis structures, storage and transportation, and infrastructure to incorporate renewable energy for production.
Higher Cost Competitiveness
The high initial investment required for setting up green ammonia production plants can be a barrier to market growth. It needs a higher cost compared to traditional ammonia manufacturing.
The cost of electrolysis, which is a key process in green ammonia production, can contribute to higher operating costs and capital investment.
Although green ammonia offers a wide range of benefits over traditional ammonia, its significant production cost presents an obstacle to green ammonia plant installation and operation.
Green ammonia uses higher amount of renewable energy sources in the production which requires substantial upfront investments., which results in a higher green ammonia price.
Additionally, its production involves a large amount of energy that contributes to an elevated production cost and a higher cost of green ammonia for sale.
Increasing Need for Environmentally Sustainable Agricultural Practices
The most influential factor that is propelling green ammonia sales is the increasing requirement for eco-friendly and sustainable agricultural methods. Farmers are notable consumers of ammonia as green ammonia is widely used in fertilizers to boost crop yields.
However, traditional ammonia production methods contribute to higher carbon emissions; there is a push to use green forms of ammonia in fertilizers.
The increasing environmental concerns and commitment to sustainable and eco-friendly agriculture have caused a great increase in the demand for green ammonia fertilizer as a suitable choice for agricultural uses.
The agriculture sector is approaching a transformative shift towards sustainability to lower the ecological concerns in farming.
The use of green ammonia proves a distinctive prospect to adjust agricultural practices by integrating a sustainability shift.
According to a study by the Yale School of the Environment, using green ammonia made with renewable energy sources for fertilizer, fuel, and heat could potentially reduce farming's carbon footprint by as much as 90% for corn and small grain crops.
Technological Advancements
Technological advancements in green ammonia production, such as new electrolyzer technologies, promise to reduce production costs and enhance efficiency.
Companies like Siemens Energy, Fortescue Future Industries, and GeoPura are collaborating on projects to develop industrial-scale green ammonia production technologies.
Further, an international group of energy companies announced the investment of US$5 Bn in a green ammonia plant in NEOM. This facility aims to build a zero-carbon city. These advances and initiatives are expected to boost the market shares in the upcoming years.
|
Segment |
Market Share % (2023) |
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Alkaline Water Electrolysis |
82% |
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Fertilizer |
48% |
Alkaline Water Electrolysis Production Process Preferred
Based on the method of electrolysis, alkaline water electrolysis (AWE) is the leading segment that is likely to be valued at a strong CAGR of 73.5% over the projection period.
Alkaline water electrolysis is known as a reliable electrolyzer that features two electrodes emerging in a liquid electrolyte solution of sodium hydroxide (potassium). This method is primarily used for manufacturing green ammonia due to its cost-effectiveness and greater purity.
Green ammonia also boasts higher durability, less dissolution of anodic catalyst, and exchangeable electrolyte, which offers several benefits to the production. The green ammonia market research shows this is an advantageous factor for green ammonia market expansion.
Application in Fertilizer Sector Higher
Based on the end user, the fertilizer segment is notably dominating the green ammonia. The sector is likely to witness a growth rate of about 68.6% between 2024 and 2033.
This rapid growth is attributed to the elevated adoption of green ammonia for manufacturing fertilizers that are eco-friendly and more sustainable. This approach was also fueled by growing government initiatives to promote zero-carbon agriculture activities.
|
Country |
Market Share % (2023) |
|
The United States |
29% |
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Australia |
1.4% |
Increasing Use of Green Ammonia in the US Elevates Regional Landscape
The US is the leading market in 2023, and it is continuously growing and will remain at the leading position in the production and consumption of green ammonia. The US is expected to reach significant shares in this market by 2033.
The increasing green ammonia stocks by leading firms and top technology companies are supporting the market expansion in this region. The establishment of rigid regulations and the growing trend of using green fertilizers are the key factors that are highly bolstering green ammonia industry maturation in the US.
Green Ammonia Industry Awaits Significant Growth in Australia and New Zealand
Australia and New Zealand are playing a prominent role in running significant numbers of green ammonia projects in the country. They also held a large number of consumer bases across the globe.
The green ammonia market in Australia and New Zealand is expected to gain a valuation growth rate of about 85.3% during 2023 and 2033.
Green ammonia competition among the companies has increased due to the great potential of the market. The companies including CF Industries Holdings, Inc., BASF SE, Yara International ASA, Maire Tecnimont S.p.A., and ACME Group are some of the leading players in the green ammonia market.
The report of the green ammonia offers insightful data while focusing on recent trends and developments in this continuously growing industry.
These companies aim to boost their sales and market shares by offering new products and innovative developments. They also include other business strategies, including joint ventures, acquisitions, partnerships, and mergers. Further, investments in R&D in green ammonia, and advancements will open new opportunities in the market.
July 2024
State-run SJVN Green Energy (SGEL) is constructing one of the world's largest green ammonia production facilities. This facility is expected to supply 4.5 gigawatts of renewable energy to AM Green Ammonia Holdings. AM Green's target of producing 5 million tonnes per annum (mtpa) of green ammonia represents a fifth of India's target for green hydrogen production under the country's National Green Hydrogen Mission and 10% of Europe's target for green hydrogen imports by 2030.
July 2024
Egypt has signed $33 billion deals with companies like BP, Masdar, and Germany's DAI for green ammonia projects. One project, worth $11 billion, will involve a green ammonia plant in East Port Said, while another, worth $14 billion, will involve a plant in Ain Sukhna Port. Green ammonia and hydrogen are seen as essential for the energy transition, but their production is costly due to the intermittency of wind and solar power. Egypt plans to build 16.5 MW of new solar capacity and 10 GW of wind power capacity, with plans to source 42% of its electricity from renewable sources by 2030.
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Attributes |
Details |
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Forecast Period |
2024 to 2033 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Country Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
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The market is expected to rise from US$ 232.8 Mn in 2024 to US$ 14,761.3 Mn by the end of 2033.
Addressing climate change and environmental concerns, efforts by governments and regulatory bodies, and technological innovation are propelling market growth.
CF Industries Holdings, Inc., BASF SE, Yara International ASA, Maire Tecnimont S.p.A., and ACME Group are some key players in this market.
The challenges, such as inadequate infrastructure and higher costs of green ammonia production, are restraining market expansion.
Increasing need for environmentally sustainable agricultural practices and technological advancements are the key opportunities that are pushing the market forward.
