Green Ammonia Market

Green Ammonia Market 2024, Size and Trends:

The global green ammonia market size was valued at USD 445.7 Million in 2024. Looking forward, IMARC Group estimates the market to reach USD 34,261.8 Million by 2033, exhibiting a CAGR of 62.01% during 2025-2033. Europe currently dominates the market, holding a significant market share of over 28.9% in 2024. The market for green ammonia is witnessing a steady growth due to the escalating demand for sustainable and clean energy sources across the globe, continuous technological advancements in electrolysis methods, and the growing applications of green ammonia in various sectors including transportation, power generation, and agriculture.

The global green ammonia market is majorly driven by the escalating focus on sustainability and decreasing greenhouse gas emissions. Governments and industries worldwide are emphasizing the transition to clean energy sources, bolstering the adoption of green ammonia as a carbon-neutral alternative to traditional ammonia production methods. Along with this, the rising demand for renewable hydrogen, critical in green ammonia synthesis, further propels market growth.  On 17^th October 2024, Ohmium announced a collaboration with Switch2 BV and BW Offshore to develop a floating green ammonia production plant powered by green hydrogen from Ohmium’s electrolyzers. Ohmium's 300 MW PEM electrolyzers will be installed on SwitcH2's 268-meter FPSO vessel, enabling annual production of 55,000 tonnes of green hydrogen and nearly 300,000 tonnes of green ammonia, sufficient to fuel several oceangoing ships for a year. The project aims to accelerate the adoption of sustainable ammonia as an alternative energy source in maritime and industrial sectors. Additionally, the expanding application of green ammonia in power generation, fuel, and fertilizer production underscores its versatility and appeal. Favorable regulatory policies, subsidies, and investments in green hydrogen and ammonia projects by key stakeholders also accelerate market development. Moreover, technological advancements in electrolysis and renewable energy integration enhance efficiency, lowering costs and encouraging wider adoption across sectors that are favoring the market.

The United States stands out as a key regional market, primarily driven by a combination of government initiatives, technological advancements, and a growing demand for sustainable solutions. Federal policies supporting clean energy transition, such as incentives for renewable hydrogen production, are playing a pivotal role in promoting green ammonia. In addition, the rising awareness about climate change and the need to reduce carbon emissions is accelerating interest in low-carbon alternatives in sectors such as agriculture and power generation. Furthermore, ongoing investments in renewable energy infrastructure and advancements in electrolysis technology are lowering production costs, making green ammonia more competitive. Concurrently, the increasing demand for clean fuels and the push for energy security are encouraging large-scale adoption of green ammonia as a critical component in decarbonizing various industries.

Green Ammonia Market Trends:

Increasing demand for clean energy resources

The escalating demand for clean and sustainable energy sources is a primary factor expanding the green ammonia market application. Nations across the globe are committing to reducing greenhouse gas emissions. This is further supported by the recent finding of the International Energy Association (IEA), according to which the share of fossil fuels in the global energy supply will decrease by 73% by 2030. In this context, green ammonia serves as a key enabler in the transition to a low-carbon economy, particularly in hard-to-abate sectors such as maritime transport and industrial processes. Additionally, the heightened awareness about its versatility, as it can be used as a fuel and for energy storage, is further amplifying the green ammonia market demand. Moreover, governments and private entities are increasingly investing in green ammonia projects, recognizing its potential in achieving climate goals and fostering a green economy. For example, Ascension Clean Energy (ACE) and Topsoe are establishing a USD 7.5 Billion facility in Louisiana that will produce 7.2 Million Metric Tons of green ammonia.

Supportive government policies and investments

According to the green ammonia market outlook, government initiatives and funding are critical accelerants for the market. Countries across the globe are implementing policies that encourage the adoption of green technologies. Recently, the Department of Energy (DoE) in the United States of America announced funding for several clean energy projects, such as the Adam Fork Energy clean ammonia project, which will produce around 2.16 Million Tons of ammonia every year. Furthermore, governments are providing subsidies, tax incentives, and favorable regulatory frameworks to promote green ammonia as a viable alternative to conventional ammonia. These policies are designed to lower the cost barrier and incentivize private investments in production facilities. Beyond this, international agreements on climate change that are exploring sustainable solutions are expanding the green ammonia market application.

Technological advancements in production methods

The expansion of production technologies is a key factor driving the green ammonia market demand. Advancements in electrolysis, such as proton exchange membrane (PEM) and solid oxide electrolysis cells (SOEC), which enable more efficient and cost-effective synthesis of hydrogen from water, thus reducing product expenditure and lowering the green ammonia market price is acting as a growth-inducing factor. Along with this, innovations in renewable energy sources, such as wind and solar power, which decrease the cost of electricity, a major expense in production, are favoring the market share. For instance, ammonia production contributes 1.3% of global emissions, with renewable energy-based "Green Ammonia" achieving a projected levelized cost of 588 GBP/Ton for 2025/2030 in Lerwick, Scotland, driven by key factors such as electricity cost and RE supply mix. In addition, companies and research institutions are actively investing in developing catalysts and processes that increase production efficiency while reducing environmental impact. This will enhance the economic viability of green ammonia and ensure its alignment with environmental sustainability goals.

Green Ammonia Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global green ammonia market, along with forecast at the global, regional, and country levels from 2025-2033. The market has been categorized based on technology and end user.

Analysis by Technology:

• Proton Exchange Membrane
• Alkaline Water Electrolysis
• Solid Oxide Electrolysis
   

Alkaline water electrolysis stands as the largest component in 2024, holding around 95.9% of the market. Based on recent green ammonia market statistics, alkaline water electrolysis (AWE) is currently the most dominant segment due to its proven reliability and comparatively lower cost. It operates on the principle of electrolyzing water to produce hydrogen and oxygen in an alkaline solution, utilizing relatively inexpensive catalysts. Additionally, the technology's maturity and established infrastructure make it a preferred choice for large-scale hydrogen production, which is essential for the synthesis of green ammonia. Furthermore, the ongoing enhancements in AWE aim to improve its efficiency and reduce operational costs, ensuring its continued prevalence in the production process.

Analysis by End User:

• Power Generation
• Transportation
• Fertilizer
• Refrigeration
• Others
   

Transportation leads the market with around 32.5% of market share in 2024. The transportation segment is significantly supported by the growing demand for clean and sustainable fuel alternatives. Furthermore, green ammonia’s potential as a carbon-free fuel, especially in the maritime and heavy transportation sectors, positions it as a key solution in reducing transportation-related emissions. Moreover, the increasing interest from shipping companies and governments in adopting ammonia as a marine fuel is further solidifying its dominant position in the market.

Regional Analysis:

• North America 
  • United States 
  • Canada 
• Europe 
  • Germany 
  • France 
  • United Kingdom 
  • Italy 
  • Spain
  • Others 
• Asia Pacific 
  • China 
  • Japan 
  • India 
  • South Korea 
  • Australia 
  • Indonesia 
  • Others 
• Latin America 
  • Brazil 
  • Mexico 
  • Others 
• Middle East and Africa
   

In 2024, Europe accounted for the largest market share of over 28.9%. Europe due to its aggressive environmental policies and commitment to reducing carbon emissions is leading the market. Furthermore, the European Green Deal, which provides an action plan to regional countries to move towards clean energy and a circular economy, is expanding the green ammonia market demand. Additionally, the European Union’s ambitious targets for climate neutrality are a major catalyst driving the adoption of green ammonia, particularly in energy-intensive industries and transportation. Moreover, the region’s advanced renewable energy infrastructure, combined with strong governmental support and public-private partnerships, is providing a boost to the green ammonia market.

Key Regional Takeaways:

United States Green Ammonia Market Analysis

In 2024, the US accounted for around 80.00% of the total North America green ammonia market. In the United States, the promotion of green ammonia is primarily motivated by the country's initiatives to lessen carbon emissions in the agricultural and energy sectors. The implementation of sustainable farming methods and renewable energy objectives, strengthened by government policies and tax incentives, is fostering the creation of green ammonia as a carbon-neutral fertilizer. The existence of developed technological infrastructure and financial support for green hydrogen initiatives further encourages its progress. According to the Green Hydrogen Organization, the United States Department of Energy's Hydrogen Shot program aims to produce green hydrogen at USD 1/kg by 2030, with USD 9. 5 Billion set aside to enhance hydrogen adoption through regional hubs and tax incentives. This effort aids in the task of decarbonizing ammonia production and coincides with the goal of attaining a net-zero carbon economy by 2050. The growing renewable energy sector, especially wind and solar, provides abundant electricity for electrolysis, a crucial process in the production of green ammonia. Moreover, the increasing need for hydrogen-based fuels in industries such as transportation and power generation highlight the significance of green ammonia as a hydrogen carrier. Partnerships between private companies and federal programs, including the Inflation Reduction Act, offer considerable financial backing for green energy projects. With a rising emphasis on energy storage solutions, the potential of green ammonia as a long-duration energy carrier is receiving attention. Market participants are also investigating export possibilities to areas with high demands for green energy.

Asia Pacific Green Ammonia Market Analysis

Asia-Pacific's increasing interest in green ammonia arises from its necessity to reconcile economic advancement with environmental sustainability. Nations such as China, Japan, South Korea, and Australia are making significant investments in renewable energy and hydrogen initiatives to achieve their carbon neutrality objectives. According to IEA, modern renewables constituted 12. 21% of Asia Pacific's ultimate energy consumption in 2021, indicating a 123% increase since 2000, thereby positioning renewable energy as a vital factor in generating Green Ammonia by diminishing CO2 emissions and dependence on fossil fuels. Green ammonia functions as a strategic approach for decarbonizing ammonia-dependent industries, such as agriculture and chemicals. In this area, Japan and South Korea are progressing in research and development to position green ammonia as a zero-carbon fuel for shipping. Australia, endowed with abundant renewable energy resources, is concentrating on the export of green ammonia to countries that import energy. China, being the largest ammonia consumer worldwide, is prioritizing cleaner production techniques to comply with its environmental regulations. The uptake is being fueled by subsidies, government-led initiatives in green hydrogen, and international collaborations. Furthermore, increasing concerns regarding air pollution and strict environmental laws are driving industries to transition to sustainable alternatives, enhancing the demand for green ammonia in the production of fertilizers and energy applications.

Europe Green Ammonia Market Analysis

Europe’s dominance in the green ammonia sector is driven by its bold climate objectives and robust regulatory framework. The European Union’s Green Deal and Fit for 55 programs prioritize the shift to a low-carbon economy, with green ammonia recognized as a vital element. The region’s sophisticated renewable energy framework, particularly in wind power, supports effective green hydrogen generation, which is crucial for green ammonia production. As stated by the European Environmental Agency, in 2023, renewable energy sources represented 24. 1% of the EU’s final energy consumption, an increase of 1% from 2022, primarily due to solar energy. Developing renewable infrastructure is essential for green ammonia manufacturing, in line with the EU’s 42. 5% goal for 2030. Major countries such as Germany, the Netherlands, and Norway are launching pilot initiatives and large-scale plants to enhance green ammonia production. The capability of green ammonia to reduce emissions in the shipping industry aligns with Europe’s rigorous maritime emissions standards. Additionally, the transition of the industrial sector toward eco-friendly production techniques fuels demand, especially in the fertilizer sector. Financial support and joint initiatives among member countries, bolstered by global funding, are enhancing the market. Europe is also dedicated to establishing a reliable green hydrogen and ammonia supply chain to ensure energy autonomy, lessen dependence on fossil fuels, and provide energy storage solutions.

Latin America Green Ammonia Market Analysis

In Latin America, the green ammonia sector is growing due to the rising need for sustainable farming practices as a response to environmental challenges. Countries including Brazil and Argentina are promoting the use of environmentally friendly fertilizers, driving progress in ammonia production. For example, in November 2024, Yara introduced Brazil's first eco-friendly nitrogen fertilizer, which achieves up to 90% lower carbon emissions by using renewable materials, marking a significant advancement in decarbonizing agriculture and supporting green ammonia projects. The region's rich natural resources present many opportunities for cost-effective ammonia synthesis. Moreover, the agricultural industry's shift towards more sustainable practices supports the use of ammonia in precision farming technologies. The potential for exporting ammonia-derived chemicals is also encouraging investments in green ammonia facilities. Additionally, partnerships with international firms are enabling the transfer of advanced ammonia production technologies to local industries.

Middle East and Africa Green Ammonia Market Analysis

Green ammonia adoption is expanding in the Middle East and Africa as the region prioritizes reducing reliance on oil and diversifying its economies. The use of ammonia in water desalination plants offers a sustainable alternative in arid regions, supporting environmental goals. According to WITS, in 2020, Saudi Arabia exported USD 406.02 Million worth of aqueous ammonia (4.3 Billion Kg), primarily to India (USD 205.61 Million, 3.5 Billion Kg). This highlights its potential as a key player in green ammonia initiatives, leveraging aqueous ammonia for sustainable energy solutions. Increasing interest in ammonia as a storage medium for hydrogen exports strengthens its market position. Furthermore, partnerships between regional governments and global technology providers are driving infrastructure development for ammonia synthesis. In Africa, green ammonia’s role in improving agricultural productivity aligns with initiatives to enhance food security. The region’s export potential for ammonia-based chemicals is also encouraging international investments in green ammonia projects.

Competitive Landscape:

The competitive landscape of the green ammonia market is characterized by significant investments in research and development, as key players focus on advancing production technologies and reducing costs. Major companies are actively collaborating with governments and renewable energy firms to scale up green ammonia production. Leading players are also exploring strategic partnerships and mergers to enhance their market presence. Notably, firms are investing in green hydrogen technologies and electrolysis systems to improve the efficiency of ammonia synthesis. Some are diversifying into integrated energy solutions, aiming to supply ammonia for multiple applications, including power generation and fertilizer production. Companies are adapting to stricter carbon regulations by integrating sustainability into their strategies, aiming to lead the shift toward a low-carbon economy.

The report provides a comprehensive analysis of the competitive landscape in the green ammonia market with detailed profiles of all major companies, including:

• ACME Group
• AMMPower Corp
• CF Industries Holdings Inc.
• FuelPositive Corporation
• ITM Power plc
• Siemens AG
• Starfire Energy
• ThyssenKrupp AG
• Topsoe
   

Latest News and Developments:

• July 2024, SJVN Green Energy (SGEL), is building a large green ammonia facility. AM Green Ammonia Holdings will receive its 4.5 gigawatts of renewable energy from this facility. The goal is to produce 5 Million Tons of green ammonia annually, meeting 20% of India's green hydrogen target under its National Green Hydrogen Mission. It will also help meet 10% of Europe's green hydrogen import needs by 2030.
• March 2024, GHC SAOC, a division of Acme Cleantech, teamed up with Yara, a world leader in crop nutrition and ammonia commerce, to guarantee a steady supply of low-CO2 ammonia. This collaboration emphasizes a commitment to decarbonized ammonia trade and sustainable energy solutions.
• August 2023, In the Gopalpur Industrial Park in Odisha, ACME Group and Tata Steel Special Economic Zone Limited (TSSEZL) inked a land agreement for their green hydrogen and green ammonia project. The agreement marked the first of its kind green hydrogen initiative for the state of Odisha.
• November 2022, Siemens Energy worked with GeoPura and Fortescue Future Industries to create an ammonia cracker prototype in Newcastle, UK. A prototype is expected to produce up to 200 kg/day of high-purity PEM-suitable hydrogen fuel.
• September 2022, Topsoe signed an agreement with First Ammonia, a New York City start-up, to supply it with 5 GW of its SOEs. Green hydrogen will be produced by the electrolysers using renewable energy, and it will be combined with atmospheric nitrogen to make green ammonia.

Green Ammonia Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the green ammonia market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global green ammonia market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the green ammonia industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.