Green Ammonia Market Size
| Study Period | 2019 - 2029 |
| Market Volume (2024) | 3.13 Million tons |
| Market Volume (2029) | 42.18 Million tons |
| CAGR (2024 - 2029) | 68.23 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Green Ammonia Market Analysis
The Green Ammonia Market size is estimated at 3.13 Million tons in 2024, and is expected to reach 42.18 Million tons by 2029, growing at a CAGR of 68.23% during the forecast period (2024-2029).
There is a growing focus on sustainable energy and green recovery efforts, which are accelerating the interest in green ammonia. Governments and industries continue to invest in ammonia production from renewable sources, driving the market toward growth.
- Increased agriculture production and the rising demand for renewable energy are the major factors expected to drive the global green ammonia market in the coming years.
- High capital investment is one of the key factors restraining overall market growth.
- The emerging application of green ammonia as a marine fuel will likely offer the market new growth opportunities.
- North America dominates the market owing to the rising application of green ammonia in power generation in the United States.
Green Ammonia Market Trends
Growing Agricultural Production
- Ammonia is important in agriculture as it binds airborne nitrogen and makes nitrogen the most important crop nutrient available for nitrogen fertilizer production.
- The demand for green ammonia is increasing with the growing population and rising need for green fertilizers. Green ammonia is intended to produce carbon-neutral fertilizer products, decarbonizing the food value chain.
- Green ammonia is essential for sustainable food production. Several manufacturers are focusing on producing carbon-free fertilizers. For instance, Yara International is working toward making carbon-free fertilizer. Clean hydrogen is the major enabler for making CO2-free or green ammonia, which is the key ingredient in green fertilizers.
- According to estimates by the FAO (Food and Agriculture Organization) of the United Nations, the growing population is estimated to increase food production by as much as about 70% by 2050 to feed the global population of 9.1 billion people.
- The growing use of green fertilizers and the rise in fertilizer consumption globally are expected to drive the demand for green ammonia.
- According to the International Fertilizer Industry Association, the demand for agricultural fertilizer is expected to grow by about 2.04% in FY 2023-24 and reach a volume of 195.04 million metric tons.
- The European fertilizer industry made tremendous improvements in the energy efficiency of ammonia production. According to Eurostat, The value of output produced by the agricultural industry in the European Union was EUR 537.5 billion (~USD 566.42 billion) in 2022, which was an increase of 19.58% compared to 2021.
- China accounted for around 7% of the overall agricultural activities globally, thus feeding 22% of the world’s population. The country is the biggest producer of a wide array of crops, including rice, cotton, potatoes, and others. Thus, the demand for ammonia, which is used as a fertilizer, is rapidly increasing owing to the large-scale agricultural activities in the country.
- Moreover, China has the most significant agricultural output among all other countries. Only about 10% of the land in China is suitable for cultivation. The limited space for cultivation has led to severe food shortages in the past. Thus, China is planning to modernize and upgrade agriculture in the next ten years. The country’s agricultural development is expected to shift from increasing production to improving quality.
- China accounts for nearly 35% of the world's total fertilizer consumption, making it the most influential country in the fertilizer industry. However, the production and use of mineral fertilizers are expected to decline as the government aims to achieve net-zero carbon emissions by 2030 and carbon neutrality by 2060. These policies are expected to favor the demand for green ammonia in the years ahead.
- Together, the factors mentioned above are projected to boost the consumption of green ammonia in agriculture.
North America Expected to Dominate the Market
- North America is the largest consumer of green ammonia, driven mainly by agriculture, power generation, and transportation.
- The rising population in the United States increased the need for food, which propelled the agriculture sector. It further increased the consumption of green ammonia within the region.
- Agriculture is one of the major sectors in the United States. The increasing global demand for food and grain products, such as corn, cereals, etc., is favoring the growth of the agriculture industry in the region.
- Owing to the increasing adoption of sustainable practices in countries across North America, the demand for green ammonia is expected to grow significantly over the forecast period.
- In February 2023, Canada’s EverWind Fuels Co.'s green ammonia project worth USD 6 billion in Nova Scotia, Canada, received environmental approval for its initial phase. EverWind said it will deliver green ammonia to German off-takers, E.ON and Uniper, by 2025.
- In March 2023, Maire Spa announced that a major North American fertilizer producer awarded its subsidiary Nextchem Holding licensing and basic engineering contracts for a green ammonia plant with a capacity of 450 tons per day. This plant will be built in the United States and start operating in 2026. The green ammonia produced in this plant will be used as a feedstock for nitrogen-based fertilizers, using the state-of-the-art technology, Stamens green ammonia.
- In September 2022, Ohmium International Inc. signed an agreement to provide 343 MW of green hydrogen electrolyzers to Tarafert, the developer of a large-scale urea fertilizer and green ammonia production facility in Mexico. When construction is completed, the plant is anticipated to produce around 200,000 tons of green ammonia per annum.
- In May 2022, Mitsui & Co. Ltd and CF Industries Holdings Inc. announced their intention to develop a greenfield project for ammonia production in their US facility. This new project is expected to begin production in 2027, and CF Industries is expecting to produce up to 2 million tons per year of blue and green ammonia at its existing facilities.
- The factors mentioned above are projected to boost the consumption of green ammonia in the region.
Green Ammonia Industry Overview
The green ammonia market is partially consolidated in nature. Some major companies (not in any particular order) in the market include Siemens Energy, thyssenkrupp Uhde GmbH, Yara, Nel ASA, and MAN Energy Solutions.
Green Ammonia Market Leaders
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Siemens Energy
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thyssenkrupp Uhde GmbH
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Yara
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Nel ASA
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MAN Energy Solutions
*Disclaimer: Major Players sorted in no particular order
Green Ammonia Market News
- November 2023: Adani Power, as part of its decarbonization initiatives, started a pilot project for green ammonia combustion that will co-fire up to 20% green ammonia in its coal-fired 330 MW Unit at the Mundra plant in Gujarat, India.
- February 2023: Uniper and Greenko signed an agreement for the purchase of 250,000 tons of green ammonia per annum from Greenko’s Kakinada green ammonia project.
- December 2022: Moroccan state-owned company OCP announced an investment of USD 13 billion for its Green Investment Strategy for 2023-2027, as part of which the company aims to produce 1 million tons of green ammonia by 2027 and will triple it to 3 million tons by 2032.
Green Ammonia Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increasing Agricultural Production
4.1.2 Rising Demand for Renewable Energy
4.1.3 Other Drivers
4.2 Market Restraints
4.2.1 High Capital Investment
4.2.2 Other Restraints
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. MARKET SEGMENTATION (Market Size in Volume)
5.1 By Application
5.1.1 Fertilizers
5.1.2 Maritime/Shipping Fuel
5.1.3 Power Generation
5.1.4 Other Applications (Hydrogen Carrier, etc.)
5.2 By Geography
5.2.1 Asia-Pacific
5.2.1.1 China
5.2.1.2 India
5.2.1.3 Japan
5.2.1.4 South Korea
5.2.1.5 Rest of Asia-Pacific
5.2.2 North America
5.2.2.1 United States
5.2.2.2 Rest of North America (Canada and Mexico)
5.2.3 Europe
5.2.3.1 Germany
5.2.3.2 United Kingdom
5.2.3.3 France
5.2.3.4 Italy
5.2.3.5 Rest of Europe
5.2.4 Rest of the World
5.2.4.1 South America
5.2.4.2 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share(%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Casale SA
6.4.2 EXYTRON GmbH
6.4.3 Green Hydrogen Systems
6.4.4 Greenko
6.4.5 ITM Power PLC
6.4.6 KAPSOM PLC
6.4.7 MAN Energy Solutions
6.4.8 McPhy Energy SA
6.4.9 Nel ASA
6.4.10 Siemens Energy
6.4.11 Technip Energies NV
6.4.12 thyssenkrupp Uhde GmbH
6.4.13 Yara
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Emerging Application of Green Ammonia as a Marine Fuel
7.2 Other Opportunities
Green Ammonia Industry Segmentation
Green ammonia is made with hydrogen from water electrolysis powered by alternative energy. It offers high efficiency and yield, requires low maintenance, and is eco-friendly as it does not emit CO2.
The green ammonia market is segmented by application and geography. By application, the market is segmented into fertilizers, maritime/shipping fuel, power generation, and other applications (hydrogen carrier, etc.). The report also covers the market size and forecasts for the green ammonia market in 9 countries across major regions. The market sizing and forecasts for each segment are provided on the basis of volume (tons).
| By Application | |
| Fertilizers | |
| Maritime/Shipping Fuel | |
| Power Generation | |
| Other Applications (Hydrogen Carrier, etc.) |
| By Geography | |||||||
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Green Ammonia Market Research FAQs
How big is the Green Ammonia Market?
The Green Ammonia Market size is expected to reach 3.13 million tons in 2024 and grow at a CAGR of 68.23% to reach 42.18 million tons by 2029.
What is the current Green Ammonia Market size?
In 2024, the Green Ammonia Market size is expected to reach 3.13 million tons.
Who are the key players in Green Ammonia Market?
Siemens Energy, thyssenkrupp Uhde GmbH, Yara, Nel ASA and MAN Energy Solutions are the major companies operating in the Green Ammonia Market.
Which is the fastest growing region in Green Ammonia Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Green Ammonia Market?
In 2024, the North America accounts for the largest market share in Green Ammonia Market.
What years does this Green Ammonia Market cover, and what was the market size in 2023?
In 2023, the Green Ammonia Market size was estimated at 0.99 million tons. The report covers the Green Ammonia Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Green Ammonia Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which is the fastest-growing segment of the Green Ammonia Market?
The Alkaline water electrolysis segment is estimated to be the fastest-growing segment of the Green Ammonia Market.
Which is the fastest-growing segment of the Green Ammonia Market?
The Alkaline water electrolysis segment is estimated to be the fastest-growing segment of the Green Ammonia Market.
Green Ammonia Industry Report
The global green ammonia market, which offers a carbon-free alternative to traditional ammonia, is anticipated to experience significant growth due to the escalating demand for eco-friendly fertilizers and an increased focus on renewable energy projects. Produced from renewable energy sources such as solar, wind, and hydropower, green ammonia is utilized in a variety of applications including transportation, power generation, and as an industrial feedstock. The market's expansion is propelled by the growing need for sustainable fertilizers, a response to the rapid increase in global agricultural production and the degradation of soil conditions from extensive use of chemical fertilizers. Despite the high initial cost of establishing green ammonia plants posing a challenge, opportunities are present in the rising demand for biofuels and the intensifying focus on constructing a hydrogen-based economy. The alkaline water electrolysis technology segment is projected to hold the largest market share, with the power generation application segment expected to grow the fastest. Europe is predicted to be the dominant market during the forecast period. Mordor Intelligence™ Industry Reports provide statistics for the Green Ammonia market share, size, and revenue growth rate, along with an analysis that includes a market forecast outlook and historical overview. A sample of this industry analysis is available as a PDF download.
