The Green Ammonia Market is in strong growth trends driven by transition towards carbon-neutral energy sources. Green ammonia, produced using renewable electricity, water and nitrogen from air, provides a carbon-free solution for sectors like shipping, fertilizer production and power generation increasingly looking to reduce their carbon footprint.
Green ammonia is produced through electrochemical process without any fossil fuel, thereby emitting zero carbon. It is an efficient way to store and transport renewable energy over long distances. With its high hydrogen content, green ammonia can serve as carbon-free fuel and feedstock. It is also used as refrigerant and in various industrial processes. The rising demand for eco-friendly alternatives is propelling research and production of green ammonia on commercial scale.
The Global Green Ammonia Market is estimated to be valued at USD 1.48 Bn in 2024 and is expected to exhibit a CAGR of 70.3% over the forecast period 2024 To 2031.
Key Takeaways
Key players: Key players operating in the Green Ammonia Market are Yara International, Siemens Energy, CF Industries, Haldor Topsøe, Nutrien, Air Products and Chemicals, Mitsubishi Heavy Industries, BASF, IHI Corporation, OCI Nitrogen, H2U, Green ammonia Technologies, EnviTec Biogas AG, Linde, thyssenkrupp, Acron Group, BayoTech, Amonix, RWE AG, and Fertiglobe.
Growing demand: The growing demand for carbon-neutral fuels and feedstock across industries is one of the major factors driving the Green Ammonia Market Size. Shipping industry is planning large-scale adoption of ammonia as marine fuel to reduce emissions.
Global expansion: Established players in the market are focusing on strategic collaborations and capacity expansion plans to cater to the growing global demand. For instance, Yara International has partnered with HPX to develop large-scale green ammonia projects in Australia.
Market key trends
Development of large-scale production plants is one of the key trends witnessed in the Green Ammonia Market. Major companies have announced plans to build gigawatt-scale production facilities to commercialize the green fuel. For example, Thyssenkrupp has partnered with REDhorse Corporation to develop a 1 GW green ammonia plant in Texas. Such large projects aim to reduce the production costs through economies of scale. Rising focus on partnerships across the value chain is another prominent trend, with collaborations between power producers, technology developers and end-use industries. This will help in mainstream adoption of green ammonia as an alternative fuel globally.
Porter’s Analysis
Threat of new entrants: High capital requirements and land procurement requirements for large-scale production makes the threat of new entrants low in the Green Ammonia Market.
Bargaining power of buyers: The bargaining power of buyers is high as green ammonia has many substitute products and technologies in the zero-carbon energy market.
Bargaining power of suppliers: The bargaining power of suppliers is high due to minimal supplier concentration and technological expertise required for green ammonia production processes.
Threat of new substitutes: Hydrogen fuel cells and batteries pose a significant threat of substitution to green ammonia in transport and energy storage applications.
Competitive rivalry: Intense competition between existing players to gain first-mover advantage.
Geographical Regions
Europe is currently the largest market for green ammonia in terms of value, driven by strong government policies and investments toward decarbonizing industries. Countries like Germany, Norway, and Netherlands are pioneering green hydrogen projects using renewable energy-based ammonia production.
Middle Eastern countries especially Saudi Arabia and UAE are projected to be the fastest growing regional market. Abundant renewable energy resources and proximity to key export markets in Asia position these countries favorably to become leading green ammonia export hubs over the forecast period.
Geographical Regions
North America is currently the second largest Green Ammonia Market led by the United States. Factors such as commitments for carbon neutral ammonia imports and investments in demonstration projects are fueling regional market growth. Canada is also emerging as a major producer to meet rising demand from domestic fertilizer and shipping industries.
Asia Pacific region led by Japan, South Korea and China is expected to witness the highest CAGR during the forecast period owing to strong government support for establishing regional green hydrogen value chains and ammonia-fueled ships. Planned large import terminals in China and India will boost the regional market.
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