Emphasis on Technology (Alkaline Water Electrolysis, Proton Exchange Membrane, and Solid Oxide Electrolysis); End-User (Industrial Feedstock, Power Generation, Transportation, Others); and Region/Country
The Green Ammonia Market was valued at USD 46.08 million in 2022 & is expected to grow at a CAGR of 186.1% from 2023-2030. Owing to the increasing investment in green fuel likely to drive the green ammonia market. Green ammonia, which is produced using renewable energy sources and emits zero carbon emissions during combustion, has emerged as a viable and environmentally friendly fuel option. The growing investments in green fuel enable the improvement of efficient and cost-effective technology and infrastructures for green ammonia production, storage, and usage. This, in turn, stimulates the overall growth of the green ammonia market, attracting more stakeholders, investors, and industry players. Moreover, by emerging economies, total worldwide energy usage is expected to grow by nearly 50% by 2050, as per the U.S. Energy Information Administration. It is still led by fossil fuels but the demand for renewable energy sources is also exploding. The advent of green energy coupled with growing concern about climate change across the world creates tremendous investment opportunities. Water, wind, and solar are among the top sources of renewable energy. Therefore, with green ammonia production, renewable energy can be stored and reused for power generation at consumption points. This will make renewable energy generation more efficient and usable for the long term. Thereby, creating growth opportunities for the Green Ammonia Market. For instance, in August 2022, CF Industries Holdings, Inc., announced it is evaluating a site in Ascension Parish for the construction of a proposed $2 billion blue ammonia production facility. This would be another big step toward our goal of making Louisiana carbon-neutral by 2050. Therefore, the increasing investments in green fuel drive the green ammonia market in the forecast period.
Some of the major players operating in the market include Siemens Energy, Air Liquide, Engie, Uniper SE, Air Products Inc., Cummins Inc., Toshiba Energy System & Solution Corporation, Nel ASA, Linde plc, Green Hydrogen System.
Insights Presented in the Report
“Amongst technology, the alkaline water electrolysis dominated the green ammonia market in 2022”
Based on technology, the market is divided into alkaline water electrolysis, proton exchange membrane, and solid oxide electrolysis. Among these, the alkaline water electrolysis dominated the green ammonia and is expected to show the same trend in the forecast period. Alkaline water electrolysis is one of the most common types of technologies used to split water into the gases hydrogen and oxygen which uses a potassium hydroxide (KOH) solution and a nickel cathode and has been the most widely adopted method for producing green ammonia due to its simplicity, maturity, and cost-effectiveness. The considerable supply of KOH and the established supplier network for this chemical decreased production prices and improved scalability. Whilst other electrolysis techniques, which include proton exchange membrane (PEM) and solid oxide electrolysis (SOE), show promise, they face challenges in terms of higher operating temperatures, corrosion resistance, and scaling troubles, which preclude their massive adoption. For instance, in 2022, the Queensland government granted coordinated project status to a USD 4.7 billion proposal to build a green hydrogen and ammonia plant in Gladstone. The project includes plans to build up to 3 gigawatts of electrolysis and produce up to 5,000 tonnes of green ammonia a day. It would be powered by 100% renewable energy, from new-build solar and wind.
“Amongst end-users, the industrial feedstock segment has dominated the market in 2022”
Based on end-users, the market is segmented into industrial feedstock, power generation, transportation, and others. Among these, the industrial feedstock segment has dominated the market in 2022 and is expected to dominate during the forecast period. Industrial feedstock, typically derived from natural gas, provides a well-set up supply chain and infrastructure, which makes it less complicated to scale up production and meet the high needs of various industries. Moreover, currently, the main role of ammonia is as the basic feedstock for inorganic fertilizers that currently support food production for around half of the world’s population. Around 70% of ammonia is used to make fertilizers, with the remainder used for a wide range of industrial applications, such as plastics, explosives, and synthetic fibers. Additionally, Secondly, the price of manufacturing green ammonia from industrial feedstock is typically less as compared to different renewable sources, which includes biomass or solar power, which makes it more economically feasible for mass production. For instance, In March 2022, Mitsui & Co., Ltd. and CF Industries announced plans for New Blue Ammonia Capacity in the United States. The new facility will produce blue ammonia by leveraging carbon capture and sequestration processes to reduce carbon emissions by more than 60% compared to conventional ammonia.
“Europe dominated the green ammonia market in 2022”
Europe has dominated and is expected to dominate the green ammonia market on account of the growing awareness regarding the adoption of environment-friendly alternatives, the growing application of green ammonia in various sectors, and several favorable government initiatives drive the green ammonia market in the forecast period. With the growing literacy rate all over the world, there is an increasing understanding among consumers and industries about the need for environmentally friendly options, which has led to a surge in demand for green ammonia, being produced from renewable power sources which include wind, sun, or hydroelectric electricity, making it a cleaner alternative to traditional ammonia production methods. Moreover, green ammonia is geared up across numerous industrial sectors, which include fertilizers, pharmaceuticals, agriculture, and energy storage. For example, green ammonia is used as a clean energy carrier, allowing for the transportation of renewable energy over long distances without losing performance and efficiency. Albeit, it can be utilized as a versatile intermediate in chemical reactions, allowing the production of various products including plastics, dyes, and pharmaceuticals. These packages contribute drastically toward reducing carbon emissions and promoting sustainability. For instance, In June 2022, a consortium consisting of Shell, ITM Power, and Johnson Matthey announced plans to develop a large-scale green ammonia facility in the UK. The project aims to produce 50 megawatts of power through electrolysis and convert it into green ammonia for use in various applications.
Green Ammonia Report Coverage
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1. Market Introduction
2. Research Methodology Or Assumption
3. Market Synopsis
4. Executive Summary
5. Green Ammonia Market Revenue (usd Bn), 2020-2030f
6. Market Insights By Technology
7. Market Insights By End-user
8. Market Insights By Region
9. Green Ammonia Market Dynamics
10. Green Ammonia Market Opportunities
11. Green Ammonia Market Trends
12. Demand And Supply-side Analysis
13. Competitive Scenario
14. Company Profiled
15. Disclaimer
Research Methodology for the Green Ammonia Analysis (2023-2030)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global green ammonia market were the three major steps undertaken to create and analyze the adoption of green ammonia in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global green ammonia market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the green ammonia market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the green ammonia market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as technology and end-users. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the green ammonia market. Further, we conducted factor analysis using dependent and independent variables such as technology and end-users of the green ammonia market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the green ammonia market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global green ammonia market, and market shares of the segments. All the required percentage shares split and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2030 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global green ammonia market. data was split into several segments & sub-segments post studying various parameters and trends in the areas of the technology and End-user in the global green ammonia market.
The main Objective of the Global Green Ammonia Study
The current & future market trends of the global green ammonia market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
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