Market Overview

Green Ammonia Market will be reaching a value of USD 290 million by 2023 and is estimated to reach a forecast value of USD 20.18 billion by 2033 with a CAGR of 70% during 2024-2033. A prominent trend in the green ammonia industry is the integration of ammonia production with renewable energy sources, such as wind and solar power. Electrolysis, powered by renewable electricity, is being used to split water into hydrogen and oxygen, with the hydrogen subsequently combined with nitrogen to produce green ammonia. This integration not only reduces greenhouse gas emissions but also contributes to the stabilization and storage of renewable energy, addressing intermittency issues.

The global push towards a hydrogen economy is fueling investments in green ammonia production. Governments, industries, and investors are allocating significant resources to develop green hydrogen and ammonia technologies, promoting research and innovation to enhance production efficiency and reduce costs. The green ammonia market is becoming increasingly global, with the potential for international trade and distribution. Green ammonia produced in regions with abundant renewable energy resources can be exported to regions with high demand, aligning with efforts to decarbonize industries that rely on ammonia.

Market Scope

Market Analysis By Production

Although in the growing phase, green ammonia market possesses a higher potential and demand within various industries, owing to its sustainable property, this has led to an increase in the production of green ammonia during the forecast period. For instance, as per the analysis done We market research the green ammonia production data is set to adopt an exponential growth. Below figure depicts the production of green ammonia from 2024 to 2030 in million tons

Source: We Market Research

Below table further depicts the breakdown of green ammonia by major countries in 2025 and 2030:

Market Dynamics

The development of a hydrogen economy is a key driver in the growth of the green ammonia market. Hydrogen has emerged as a clean and versatile energy carrier with the potential to transform various sectors, including energy, transportation, and industry. Green ammonia plays a pivotal role in this transition for several reasons.

First, green ammonia is a valuable carrier of hydrogen. Through a process known as ammonia cracking, it can release hydrogen for various applications, including fuel cells, industrial processes, and power generation. This makes green ammonia an essential component of the emerging hydrogen infrastructure.

Second, the need for sustainable hydrogen production is driving the demand for green ammonia market. While hydrogen can be produced through various methods, the use of renewable energy for green ammonia production via electrolysis has garnered significant attention. Electrolysis, powered by renewable electricity, enables the conversion of water and nitrogen into ammonia, reducing carbon emissions associated with traditional ammonia production methods. As a result, green ammonia aligns with the goals of producing clean and green hydrogen, essential for the hydrogen economy's success.

Third, the hydrogen economy is promoting the development of innovative technologies and infrastructure. This includes the establishment of green ammonia production facilities, storage solutions, and transportation networks to support the distribution of ammonia and the extraction of hydrogen when and where it's needed. These advancements contribute to the growth of the green ammonia market and help create a robust foundation for the broader hydrogen economy.

Government Backing: Governments worldwide are providing support for the advancement of the hydrogen economy by means of subsidies, tax incentives, and other forms of encouragement. To illustrate, the European Union has established a goal of allocating EUR 10 billion for hydrogen economy investments by 2030.

Corporate Commitment: Leading corporations are also making substantial investments in the hydrogen economy. For instance, Toyota has unveiled intentions to dedicate USD 13.5 billion to the development of hydrogen fuel cell technology by 2030.

Technological Progress: Ongoing technological progress is enhancing the efficiency and cost-effectiveness of hydrogen production, storage, and transportation.

According to a report from Bloomberg Intelligence, it is anticipated that global investments in the hydrogen economy will surge to USD 630 billion by 2030, with a projected compound annual growth rate (CAGR) of 50% from 2023 to 2030.

In summary, the growth of the hydrogen economy and the increasing emphasis on green and sustainable hydrogen production are significant drivers for the green ammonia industry. As the hydrogen economy expands and evolves, green ammonia's role as a clean and efficient carrier of hydrogen positions it as a crucial component in the global transition to a more sustainable and environmentally responsible energy system.

Market Analysis By Production Method

Based on production method, green ammonia market is segmented into Electrolysis, Haber-Bosch Process with Carbon Capture and Utilization (CCU), Biomass Gasification, Hydrothermal Gasification, Other Sustainable Production Methods. Electrolysis based method dominate the market with an active share of 97% in 2022. One of the prominent trends is the integration of renewable energy sources, such as wind and solar power, with electrolysis processes. This synergy allows for the use of renewable electricity to split water into hydrogen and oxygen, a critical step in green ammonia production. This trend aligns with the broader shift towards sustainable and low-carbon energy solutions.

The concept of hydrogen hubs is gaining momentum. These hubs serve as central locations for hydrogen and green ammonia production, storage, and distribution. They often integrate multiple electrolysis facilities, storage tanks, and distribution networks, fostering a regional hydrogen and ammonia ecosystem. Collaboration between countries is emerging as a trend, with regions that have abundant renewable energy resources exporting green ammonia and hydrogen to areas with high demand. This trend supports the creation of a global market for green ammonia and strengthens international cooperation in the transition to sustainable energy.

Market Analysis By Application

Based on application, the green ammonia market is segmented into Agriculture, Chemicals, Power Generation, Transportation, Refrigeration and Others. Agriculture based application held the dominant position with the market, owing to the trend toward sustainable and environmentally responsible farming practices is driving the adoption of green ammonia. Farmers are seeking alternatives to traditional nitrogen fertilizers, which are associated with greenhouse gas emissions and water pollution. Green ammonia offers a cleaner and more sustainable source of nitrogen.

The integration of green ammonia with precision agriculture practices is a growing trend. Precision agriculture leverages technology and data to optimize farming operations, including the precise application of fertilizers. Green ammonia's controlled-release characteristics align well with precision agriculture goals. Green ammonia is aligning with the principles of organic farming. Organic farmers are seeking nitrogen sources that meet organic certification standards. Green ammonia, produced without synthetic chemicals or non-renewable energy sources, is being explored as an option for organic agriculture.

Market Analysis By Region

Based on the regions studied, green ammonia market is analyzed across North America, Europe, Asia Pacific, South America and MEA. North America dominates the market with an active share of 35% in 2022, followed by Europe with 30%. North America is witnessing a significant trend of integrating renewable energy sources, such as wind and solar power, with green ammonia production. Electrolysis, powered by renewable electricity, is becoming a prominent method for producing green ammonia. This trend aligns with the continent's increasing emphasis on reducing carbon emissions and achieving sustainability goals.

Green ammonia is being adopted in North America as a sustainable nitrogen source for agriculture. With a growing focus on sustainable and environmentally responsible farming practices, green ammonia aligns with the region's commitment to reducing the environmental impact of agriculture. Regulatory support and incentives for green ammonia production are emerging at the state and federal levels. Governments are recognizing the potential of green ammonia to reduce emissions and support the transition to a cleaner and more sustainable energy and agricultural sector.

Europe is experiencing a robust trend of adopting renewable energy sources for green ammonia market production. Wind, solar, and hydroelectric power are increasingly integrated into electrolysis processes, reducing the carbon footprint of ammonia production and aligning with the continent's renewable energy targets. Europe's stringent climate goals, including emissions reductions and carbon neutrality targets, are driving the adoption of green ammonia. Its production with renewable energy and low-carbon methods contributes to achieving these ambitious climate objectives. Europe is witnessing substantial investments in green ammonia infrastructure, including the construction of production facilities, transportation networks, and storage solutions. These investments enhance the region's capacity for green ammonia production and distribution.

Competitive Analysis

Some of the major companies operating within the green ammonia market are Siemens Energy, Thyssenkrupp AG, MAN Energy Solutions, Nelasa, ITM Power, Mcphy Energy SA, Enapter Srl, Green Hydrogen Systems, Stamicarbon, Hygenco.

Siemens Energy dominates the market with an active share of 22.16% in 2022. Siemens Energy was involved in developing high-efficiency electrolysis technologies, which are essential for the production of green ammonia. Their focus was on advancing proton exchange membrane (PEM) and solid oxide electrolyzers (SOE) that are key to the conversion of renewable electricity into green hydrogen, a precursor to green ammonia. Siemens Energy's strategy encompassed the entire value chain of green hydrogen and ammonia production. They aimed to produce green hydrogen efficiently through electrolysis and then use this hydrogen as a feedstock for green ammonia production.

Research Report Following Segments:      

Market, By Production

·         Electrolysis

·         Haber-Bosch Process with Carbon Capture and Utilization (CCU)

·         Biomass Gasification

·         Hydrothermal Gasification

·         Other Sustainable Production Methods

Market, By Application

·         Agriculture

·         Chemicals

·         Power Generation

·         Transportation

·         Refrigeration

·         Others

Market, By Product Form

·         Anhydrous Ammonia

·         Aqueous Ammonia Solution