Green Ammonia Market Share, Size, Trends, Industry Analysis Report, By Technology (Proton Exchange Membrane, Alkaline Water Electrolysis, Solid Oxide Electrolysis); By End-Use; By Region; Segment Forecast, 2022 - 2030
- Published Date:Oct-2022
- Pages: 124
- Format: PDF
- Report ID: PM2647
- Base Year: 2021
- Historical Data: 2018 - 2020
Report Outlook
The global green ammonia market was valued at USD 17.1 million in 2021 and is expected to grow at a CAGR of 90.01% during the forecast period. The increase in green hydrogen projects, rising investment in the hydrogen-based economy, and growing demand for green ammonia in agriculture and power generation industries drive the market over the forecast period.
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Countries across the world are increasingly turning toward green ammonia to achieve their zero-emission targets. It is increasingly used for power generation to overcome challenges such as high expenditure and carbon emissions posed by fossil fuels. The rise in research and development is observed in the market to develop affordable and highly efficient solutions. Consumers, organizations, and governments across the world are exhibiting concerns regarding environmental degradation and shifting toward renewable energy sources to reduce carbon emissions.
Green ammonia is obtained through processes that are completely renewable and carbon-free. Green ammonia is acquired through hydrogen from water electrolysis and nitrogen separated from the air. The production method includes using renewable energy to decrease the emission of greenhouse gases.
Green ammonia is in fuel cells and gas turbines. It is also being used in methane-fired power stations as an alternative fuel. Increasing initiatives to decarbonize industries such as electric vehicle charging, shipping, and non-electrified rail have increased the adoption of green ammonia. In May 2022, Science and Technology Facilities Council and Frazer-Nash Consultancy received funding from the UK government to create a design of an efficient green ammonia plant.
Engineers associated with the project are working to develop a green ammonia plant to generate ammonia through intermittent renewable energy as the source of power. The Department for Business, Energy, and Industrial Strategy supports this project through its Net Zero Innovation Portfolio Low Carbon Hydrogen Supply 2 competition. The development is aimed at enabling the UK to become more reliant on intermittent renewable power.
The outbreak of COVID-19 influenced the global market. The market was affected by lockdown regulations across the world. Restricted trade activities, travel restrictions, and a lack of workforce were some factors that affected the market. Shutting of manufacturing activities and operational challenges were also suffered by the global industry. The market is expected to experience significant growth during the forecast period owing to increasing applications, growth in environmental concerns, and supportive government regulations.
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Industry Dynamics
Growth Drivers
The global green ammonia market is expected to experience significant growth during the forecast period. Greater environmental concerns and an inclination toward renewable energy sources boost the demand for green ammonia. Implementing strict environmental regulations and efforts taken by governments worldwide for decreased dependency on fossil fuels accelerate the market’s growth. The rise in fertilizers to enhance agricultural production and obtain higher-quality crops also boosts the demand for green ammonia.
The growth in the economy and rise in demand for the storage of renewable energy has increased the demand for green ammonia. Initiatives are being taken to decrease carbon emissions associated with the production of ammonia. Ammonia is also being used as maritime fuel to address environmental concerns.
Governments across the world are taking initiatives to decarbonize economies with increasing emphasis on hydrogen-based solutions. Technological advancements and significant investment in research and development are expected to contribute to market growth during the forecast period.
Report Segmentation
The market is primarily segmented based on technology, end-use, and region.
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By Technology |
By End-Use |
By Region |
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Alkaline water electrolysis segment accounted for the largest market share
Based on technology, the global market has been segmented into proton exchange membranes, alkaline water electrolysis, and solid oxide electrolysis. Alkaline water electrolysis dominated the global market in 2021. The technology is widely used because of its high efficiency, affordability, and superior performance. Several companies are investing in this technology to cater to the growing demand of green ammonia worldwide. In April 2021, CF Industries Holdings signed a contract with ThyssenKrupp AG to deliver a 20-MW alkaline water electrolysis plant in Louisiana. The manufacturing facility is aimed at hydrogen production, which is a part of its green ammonia project.
Power generation segment accounted for a major share
Based on end-use, the global market has been segmented into power generation, transportation, industrial feedstock, agriculture, and others. The power generation segment accounted for a major market share in 2021. Rising environmental concerns and a greater need to reduce dependency on fossil fuels for power generation support the growth of this segment. Using green ammonia provides a sustainable solution for power generation by decreasing the number of emissions released into the environment.
The acceptance of green ammonia as an alternative energy source for power generation has increased in recent years. Several developed and developing countries across the globe are increasingly relying on cleaner energy sources to meet their growing energy demands. Several initiatives are being taken by developing economies such as India, China, Korea, and Japan to adopt cleaner energy sources for power generation.
Europe is expected to hold the largest market share
Europe accounted for a major share of the market in 2021. The rise in environmental awareness and the introduction of stringent environmental regulations drive the demand for green ammonia. An increase in the deployment of fuel cell projects on account of a rise in inclination toward the use of clean energy sources supports the market growth.
Greater application of green ammonia across power generation, transportation, and agricultural sectors has been observed in the region. Favourable government initiatives, a rising transition toward sustainable energy sources to meet the growing energy demand, and efforts toward achieving energy targets would further contribute to the market growth in the coming years.
Rise in application in the transportation sector has been observed as the countries in the region move away from fossil fuels and adopt cleaner transportation fuels. Rising industrialization, growth in investments in research and development of cleaner energy sources, and rising application areas further support the market growth in the region.
Competitive Insight
The key players in the market are ACME Group, Aker Clean Hydrogen, BASF SE, Dyno Nobel, Eneus Energy Limited, Electrochaea, Greenfield Nitrogen LLC, Green Hydrogen Systems, ITM Power, Hive Energy, MAN Energy Solutions, Siemens Energy, ThyssenKrupp AG, Uniper, and Yara International ASA. These major players operating in the global green ammonia market are leveraging advanced technologies to launch new products. Partnerships and collaborations offer opportunities for market growth and wider presence.
Recent Developments
In August 2022, Avaada Group announced establishing a green ammonia manufacturing unit in Rajasthan. The development is aimed at meeting the growing energy demand in India through the use of sustainable solutions.
In June 2022, ACME Group aligned with the Government of Karnataka in India doe setting up of a green ammonia manufacturing unit. The 1.2 million tonnes per annum plant is expected to offer sustainable solutions and assist in the energy transition.
In October 2021, Fertiglobe collaborated with Scatec, and the Sovereign Fund of Egypt to establish a 50-100 MW electrolysis plant in Egypt. The manufacturing unit manufactures 90,000 metric tons green ammonia per annum. The new plant is leveraging Fertiglobe’s ammonia platform to offer clean and sustainable solutions.
Green Ammonia Market Report Scope
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Report Attributes |
Details |
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Market size value in 2022 |
USD 22.0 million |
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Revenue forecast in 2030 |
USD 3,756.9 million |
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CAGR |
90.1% from 2022 - 2030 |
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Base year |
2021 |
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Historical data |
2018 - 2020 |
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Forecast period |
2022 - 2030 |
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Quantitative units |
Revenue in USD million and CAGR from 2022 to 2030 |
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Segments Covered |
By Technology, By End-Use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key Companies |
ACME Group, Aker Clean Hydrogen, BASF SE, Dyno Nobel, Eneus Energy Limited, Electrochaea, Greenfield Nitrogen LLC, Green Hydrogen Systems, ITM Power, Hive Energy, MAN Energy Solutions, Siemens Energy, ThyssenKrupp AG, Uniper, and Yara International ASA. |
