Global Green Ammonia Market By Technology (Proton Exchange Membrane, and Solid Oxide Electrolysis), By Sales Channel (Direct Sale, and Indirect Sale), By Application, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the global green ammonia market was valued at USD 74.48 million and is expected to reach USD 20,919 million in 2032. This market is estimated to register a CAGR of 78.2% between 2023 and 2032. The ammonia that is produced without using fossil fuels like wind or solar energy is referred to as green ammonia.

As an environmentally friendly alternative to traditional ammonia production techniques, which produce significant greenhouse gas emissions, green ammonia offers several benefits.

It could potentially serve as a zero-carbon fuel for shipping applications or other heavy-duty transportation needs; additionally, ammonia is already widely used in industrial operations and fertilizer applications – creating an ample market for green ammonia.

Key Takeaways

Market Growth: The global Green Ammonia market was valued at USD 74.48 Million in 2022 and is anticipated to reach USD 20,919 Million by 2032, with a CAGR of 78.2% between 2023 and 2032.

Environmental Concerns Driving Adoption: The increasing global focus on reducing carbon emissions and mitigating climate change is a significant driver for the green ammonia market. Green ammonia is seen as a cleaner alternative to traditional ammonia production, as it is produced using renewable energy sources and has lower carbon footprints.

Application Analysis: Green ammonia finds various applications, including transportation, power generation, industrial feedstock, fertilizer production, and others. In transportation, green ammonia can be used as fuel for heavy-duty vehicles like trucks, and buses, and even in fuel cells for ships.

Technology Analysis: The dominant technology in the green ammonia market is alkaline water electrolysis, constituting 46% market share. Alkaline water electrolysis uses an alkaline electrolyte to separate anode and cathode compartments and has been a long-standing method to generate hydrogen.

Sales Channel Analysis: The dominant sales channel in the global green ammonia market is direct sales, accounting for approximately 59% market share. Direct sales involve manufacturers selling green ammonia directly to end-users, especially large-scale industrial customers requiring bulk quantities.

Market Drivers: Key drivers for the green ammonia market include growing awareness of sustainability, stringent environmental regulations, increasing demand for sustainable agriculture practices, and the transition towards renewable energy.

Restraints: Challenges faced by the green ammonia market include high initial costs of infrastructure and technology, limited public awareness, and the need for supportive policies and incentives to boost adoption.

Opportunities: Opportunities for growth in the green ammonia market include government incentives and subsidies, research and development for more efficient production methods, and partnerships across the value chain to promote green ammonia use.

Trends: Emerging trends in the green ammonia market include advancements in green ammonia production technologies, partnerships for pilot projects, and integration with existing ammonia supply chains.

Regional Analysis: Europe is the dominant region in the green ammonia market, holding a significant 39% market share. The leading position of Europe is attributed to the rising demand for renewable energy and the presence of major industry players.

Key Players: Major companies in the green ammonia market are focusing on research and development, strategic partnerships, and investments to expand production capacities and enhance their market presence.

Driving Factors

The global green ammonia market is being driven by several factors, including an increasing demand for clean energy, growing awareness of environmental concerns, and government initiatives to promote sustainable energy solutions.

With increasing concerns about climate change, there has been a global push to reduce carbon emissions and shift towards renewable sources like wind, solar, and hydropower – seen as an environmentally friendly alternative to traditional ammonia production methods which rely heavily on fossil fuels. Green ammonia production utilizes these renewable energies instead.

Governments around the world are actively encouraging the growth of green ammonia through various incentives and policies. For instance, several countries have implemented renewable energy targets and subsidies to encourage the use of sustainable energy sources.

This has created a favorable environment for this market as producers can take advantage of government support while meeting increasing demands for sustainable energy solutions.

Restraining Factors

High cost of production

The high cost of producing green ammonia, which is presently significantly more expensive than conventional ammonia production techniques, is one major barrier. Large-scale production of green ammonia requires sophisticated infrastructure and technology as well as high renewable energy expenses. A significant barrier to this industry’s growth is also the absence of trustworthy green ammonia supply networks.

The market for green ammonia cannot grow with the existing infrastructure in place, so specialized facilities are required for both production and distribution. Another significant barrier is the competition from other renewable energy sources like hydrogen, which is being pushed as an alternative to conventional ammonia production.

By Technology Analysis

Alkaline water electrolysis technology is dominant in the market with a share of 46%.

On the basis of technology, the market for green ammonia is segmented into proton exchange membrane, alkaline water electrolysis, and solid oxide electrolysis. From that alkaline water electrolysis technology is dominant in the market with a share of 46%.

Alkaline water electrolysis is a well-established technology that uses an alkaline electrolyte to separate the anode and cathode compartments. It has been employed for years to generate hydrogen.

Alkaline water electrolysis requires higher temperatures and pressures than PEM electrolysis, making it less efficient. Proton exchange membrane electrolysis utilizes a polymer electrolyte membrane to isolate the anode and cathode compartments.

Solid oxide electrolysis works at lower temperatures and pressures than other electrolysis technologies, which reduces both the cost and complexity of the system. Solid oxide electrolysis uses a ceramic electrolyte to separate anode and cathode compartments. It has high temperatures and high efficiency levels that make it suitable for industrial applications.

By Sales Channel Analysis

The direct sales channel is dominant in the market with a market share of about 59%

By sales channel, the market for global green ammonia is divided into direct sales and indirect sales. The direct sales channel is dominant in the market with a market share of about 59%.

Direct sale involves the manufacturer or producer of green ammonia selling directly to the end-user or customer. This sales channel is typically used for large-scale industrial customers who require bulk quantities of green ammonia.

The indirect sale involves the use of intermediaries, such as distributors or resellers, to sell green ammonia to the end-user or customer. This sales channel is typically used for smaller-scale customers who require smaller quantities of green ammonia.

The indirect sale model allows manufacturers to reach a wider range of customers through the distribution network of intermediaries.

By Application Analysis

In a number of areas green ammonia is used as it is produced using renewable sources of energy

Based on application, the market is segmented into transportation, power generation, industrial feedstock, fertilizer, and other applications. Green ammonia can be used as fuel for transportation, particularly heavy-duty vehicles like trucks and buses. Ammonia fuel cells may even be employed on ships.

Green ammonia may also be utilized in power generation through gas turbines or combustion engines with other fossil fuels like natural gas – either alone or combined. Ammonia plays an integral role in the production of various industrial chemicals like fertilizers, plastics, and pharmaceuticals – particularly nitrogen-based fertilizers that boost crop growth. Green ammonia production could produce sustainable fertilizers without contributing to climate change issues.

Key Market Segments

Based on Technology

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

Based on Sales Channel

• Direct Sale
• Indirect Sale

Based on Application

• Transportation
• Power Generation
• Industrial Feedstock
• Fertilizer
• Other Applications

Growth Opportunities

Sustainable energy solutions

The global green ammonia market presents several opportunities for growth and innovation. One of the significant opportunities is the increasing demand for sustainable energy solutions. The world is rapidly transitioning towards renewable energy sources, and green ammonia provides an excellent opportunity to meet this demand. Another significant opportunity for the green ammonia market is the development of new and innovative production technologies.

The development of a robust supply chain for green ammonia is also an opportunity for the market. As demand for green ammonia increases, there will be a need for specialized infrastructure and logistics to produce and distribute it efficiently.

Latest Trends

Reduces greenhouse gas emission

One of the most important trends is the increased focus on green hydrogen and its importance in green ammonia manufacturing. The use of green hydrogen in green ammonia production can reduce greenhouse gas emissions significantly because it is made from renewable energy sources.

The development of innovative business models for green ammonia production and distribution is another important trend. New players such as community-based projects and energy cooperatives are disrupting traditional business models and opening up new possibilities for small-scale green ammonia production.

Regional Analysis

Europe is dominant with 39% of the market share

Europe is the leading market for green ammonia with 39% of the total. This is due to an increasing demand for renewable energy and major players in Europe. The Netherlands in particular has become a key hub for producing this fuel due to numerous projects and government initiatives that promote its use in shipping and other heavy-duty transport applications.

North America is also increasingly participating in this space due to its growing interest in sustainable energy sources and initiatives designed to reduce greenhouse gases.

Because of the area’s increasing interest in renewable energy sources and policies that reduce greenhouse gas emissions, the market for green ammonia is anticipated to grow quickly in the Asia Pacific region. The main countries in this region are Japan, Australia, and China. The Middle East and Africa have significant growth in the market because of large-scale renewable energy projects and government initiatives.

Due to the region’s growing interest in alternative energy sources and regional regulations that seek to reduce greenhouse gas emissions, the Latin American green ammonia market is anticipated to experience an unsure growth. Particularly, Brazil is emerging as a significant participant in this industry.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Players Analysis

The demand for renewable energy sources and the need to reduce greenhouse gas emissions have created an opportunity in the green ammonia market. At present, only a few major players hold a dominant share in this space, but in years ahead these players are predicted to play an even larger role in driving its expansion. Furthermore, since this market is still young, new players have an opportunity to enter and claim the maximum share before established players do.

Key Players

• Nel Hydrogen
• Siemens Energy
• MAN, Energy Solutions
• ThyssenKrupp AG
• ITM Power PLC
• Hydrogenics
• Green Hydrogen Systems
• McPhy Energy
• Electrochaea
• EXYTRON
• AquaHydrex
• Enapter
• BASF SE
• Other Key Players

Recent Developments

• In January 2022: Yara International announced intentions to erect a 1.2 million tons per year green ammonia production facility in Norway. One of the biggest green ammonia production facilities in the world is anticipated to result from this initiative.
• In December 2021: The Netherlands revealed plans to construct a green ammonia import terminal in December 2021, which will aid in the expansion of the green ammonia market in Europe.

Report Scope