Market Trends of Ammonia Storage Tanks Industry
Expansion of Ammonia Storage Capacity Across Industries Globally
- The growing need for improving crop yield and nutritional content while reducing production costs is anticipated to drive the demand for ammonia storage tanks in the fertilizer industry. As companies look to reduce logistics costs and bring in larger shipments, a substantial increase in ammonia storage capacity is anticipated during the forecast period.
- According to International Fertilizers Association, the global demand for fertilizers is anticipated to reach over USD 200 million in valuation between 2025-2026. The need for nitrogen fertilizer is expected to touch 114.5 million metric tons during this period.
- The ammonia market continues to consolidate, and large and cleaner ammonia plants near the coal resources are being built. As per the Ammonia Energy Association (AEA), China produced around 77 million tons of ammonia in 2023. China is shifting its focus from emissions-intensive to low-emissions ammonia which involves the development of green or renewable ammonia.
- A capacity of 9.1 million tons (MT) in total is planned, under construction, or operational across China, including 3.2 MT from operational projects and under construction – representing 4% of existing ammonia capacity (nearly 77 MT) in 2023.
- Globally, major economies are also planning on production expansion. For instance, Russia is planning to boost its ammonia production with approval for the project coming in from the country's Main Department of State Expertise. The project will reportedly have an annual production capacity of 525 thousand tons of ammonia and 700 thousand tons of urea and will be built in cooperation with China National Chemical Engineering.
- Similarly, the Gulf Coast Ammonia (GCA) plant is anticipated to produce over 1.3 million tons of ammonia annually to supply fertilizer-hungry export markets and domestic customers. The plant is expected to operate by 2025 and will use traditional steam methane reforming to produce Ammonia.
- According to U.S. Geological Survey, the United States witnessed its Ammonia production grow by over 20% during the last few years. The region's ammonia production is attributed to less carbon-intensive natural gas-fed ammonia plants, which account for 92% of all United States ammonia production. The expansion of ammonia capacity in the United States has driven the growth of natural gas production, which has resulted in the expansion of domestic ammonia production. Further, in 2023, the production of ammonia in the country amounted to an estimated 14 million metric tons, as per the government of the United States.
- The expansion of ammonia production capacity globally is anticipated to drive demand for ammonia storage tanks during the forecast period.
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Middle-East & Africa Region Anticipated to Dominate Global Market
- The Middle East & Africa is anticipated to dominate the global ammonia storage market, with significant companies expanding their regional production capacity. For instance, Africa includes around 21 announced and planned ammonia production plants, of which Nigeria alone accounts for ten ammonia plants with a total capacity of 7.39 Mtpa, to be commissioned by 2025.
- Companies are working on expanding their ammonia production in the region through strategic collaborations. For instance, in 2022, Linde announced its partnership with Hive Hydrogen to construct 780,000 kilotons per year solar ammonia export facility in South Africa. The project is anticipated to be operational by 2026.
- In 2023, Emypro, a Spanish firm, unveiled the world's largest ammonia tanks at NEOM, playing a pivotal role in the USD 8.4 billion NEOM green hydrogen initiative. Each tank stands 40 meters tall with a diameter of 76 meters and is set to be operational by 2026, aligning with the project's commercial launch.
- The UAE is focusing on ammonia production, especially green ammonia, as a part of its broader sustainability goals and its strategy to diversify its economy away from oil. ADNOC has been at the forefront of ammonia projects in the country.
- The factors above indicate strong growth potential for the Middle East and African region to dominate the studied market globally.
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