H1 2023: In February 2023, CF Industries Holdings, the largest ammonia producer, announced that it has signed an agreement with Lotte Chemical Co., Ltd., which is a leading chemical producer of South Korea for a greenfield project The joint project of green ammonia aims at the long-term clean ammonia in a greenfield project at U.S. The project is an endeavor towards clean energy and sustainable development and meet the demand of clean ammonia of South Korea. Lotte says that the plant will make use of carbon capture and storage (CCS) technologies to produce green ammonia and then ship to South Korea to meet the demand of green ammonia in the South Korean market.
The global Green Ammonia market stood at approximately 3 thousand tonnes in 2022 and is expected to grow at an excellent CAGR of 106% during the forecast period until 2032. Governmental organizations from all around the world are taking part in campaigns to promote green hydrogen and decarbonize the ammonia production process which is likely to drive the Green Ammonia market.
The production of Green Ammonia is gaining popularity due to its production process being 100% renewable and carbon-free. One method of producing green ammonia is by using hydrogen from water electrolysis and nitrogen separated from the air. Both of these elements are then fed into the Haber process (also known as Haber-Bosch), everything powered by sustainable electricity. In the Haber process, hydrogen and nitrogen react at high temperatures and pressures to produce ammonia, NH3. Alkaline water electrolysis and proton exchange membrane electrolysis are only two of the technologies being used to create green ammonia. Solid oxide electrolysis (SOE), one of them, is thought to be the most prominently used one. High conversion efficiencies can be attained by solid oxide electrolysis cells (SOECs), which operate at high temperatures, typically between 700- 900 degree Celsius.
Green Ammonia is a versatile fuel for heat and electricity that can be used in gas turbines, internal combustion engines, generator sets, industrial furnaces, and fuel cells. It is notably useful for naval transportation. Although, the employment of green ammonia to produce fertilizers is the largest application, which is likely to maintain its dominance in the forthcoming years. Green ammonia has a lower carbon footprint and can aid in lowering greenhouse gas emissions because it is produced using renewable energy sources like solar and wind power. During the forecast period, there is expected to be a significant increase in demand for green ammonia, a more environmentally friendly but functionally equivalent substitute for fossil-based ammonia. Ammonia is both a chemical energy carrier and a potential fuel, much like fossil fuels, where energy is released by the rupturing of chemical bonds. Importantly, using ammonia as a fuel has the benefit of not emitting any carbon dioxide, and producing ammonia with renewable energy can further increase its sustainability. The global Green Ammonia market is anticipated to reach approximately 14.3 million tonnes in 2032.
Based on region, the Asia Pacific is the largest consumer of Green Ammonia market, followed by Europe and North America. To meet the growing demand for sustainable farming, chemical manufacturers are turning to eco-friendly and sustainable goods, such as green ammonia. In the upcoming years, it is anticipated that this trend would greatly increase green ammonia sales in nations like China, Japan, Taiwan, and India. Factors like continuous population growth and reduction of cultivable land in response to industrialization are the factors fueling the Green Ammonia market. Due to supportive government initiatives and regulations that result in the need for green hydrogen production in order to achieve its energy goals and retain energy-intensive businesses in response to climate change, the European market for Green Ammonia is also expanding. In the upcoming years, Europe is anticipated to hold the maximum production capacity of green ammonia with countries like Germany and Denmark having huge investments for setting up new manufacturing sites.
Based on the end-user industry, the global Green Ammonia market is segmented into Fertilizers, Industrial products, Power Generation, and Others. Among these, the Fertilizers industry is dominating the global Green Ammonia market, followed by the Industrial products industry. In 2022, Fertilizers industry consumed approximately 61% of the market and is likely to project the trend in the forthcoming years. The demand for Green Ammonia in Power Generation is likely to rapidly increase, which will most likely provide a positive outlook to the Green Ammonia market in the upcoming years.
Major players in the Global Green Ammonia are Mitsubishi Ltd. / H2U group, ACME Group, Incitec Pivot Limited (IPL) & Fortescue Future Industries (FFI), Enaex & Engie, Yara International ASA, Ap Mollar-Maersk, HYPHEN Hydrogen Energy, fertiglobe plc, Svevind group, Fertiberia & Iberdrola, Aquamarine Investment Partners, Orica Limited/H2U group, and Others.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Green Ammonia which covers production, demand and supply of Green Ammonia market in the globe.
• To analyse and forecast the market size of Green Ammonia
• To classify and forecast Global Green Ammonia market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Green Ammonia market in the globe.
To extract data for Global Green Ammonia market, primary research surveys were conducted with Green Ammonia manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Green Ammonia market over the coming years.
ChemAnalyst calculated Green Ammonia demand in the globe by analyzing the historical data and demand forecast which was carried out considering the demand of Green Ammonia from the end-use industries. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Green Ammonia manufacturers and other stakeholders
• Organizations, forums and alliances related to Green Ammonia distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Green Ammonia s manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Green Ammonia s market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
3 thousand tonnes
Market size Volume by 2032
14350 thousand tonnes
Growth Rate
CAGR of 106% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in thousand tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process.
Segments covered
By End-Use: (Fertilizers, Industrial products, Power Generation, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
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What is the expected Global market size of Green Ammonia in terms of volume for 2032?
Ans:
The market size of Global Green Ammonia market is anticipated to reach about 14350 thousand tonnes by 2032.
Q2.
Which end-use industry is dominating the Global Green Ammonia market?
Ans:
The Fertilizers industry is dominating the Global Green Ammonia market and held a market share of roughly 61% in 2022.
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