Global Green Ammonia Energy Market Size (2023-2030)

The Global Green Ammonia Energy Market was estimated to be worth USD 39 million in 2022 and is projected to reach a value of USD 3446.31 million by 2030, growing at a CAGR of 75.1% during the forecast period 2023-2030.

The manufacture and use of ammonia as a carbon-free fuel source is referred to as "green ammonia energy." This is accomplished by electrolyzing hydrogen utilizing renewable energy sources, such as wind or solar energy. To create ammonia, which may be utilized as a fuel for electricity production, transportation, and other industrial uses, the hydrogen is next mixed with nitrogen. Because it can be generated using renewable energy sources and does not emit greenhouse gases during combustion, green ammonia is seen as a possible replacement for fossil fuels.

Global Green Ammonia Energy Market Drivers:

An opportunity for green ammonia energy is being created by the need for long-term renewable energy storage:

The need for renewable energy storage is growing as the globe switches to more environmentally friendly energy sources. The ability to store extra energy produced during periods of high production so that it may be used during times of low output makes long-term renewable energy storage a crucial component. This aids in ensuring a steady and dependable energy supply. Batteries, pumped hydro storage, compressed air energy storage, thermal energy storage, and other technologies are being explored for long-term renewable energy storage. These technologies do, however, have limits in terms of affordability, effectiveness, and scalability. Green ammonia is a possible long-term renewable energy storage technique. Energy generated from solar, wind, or hydropower is put into an electrolyzer to create green ammonia. Hydrogen is extracted from water using an electrolyzer, while nitrogen is taken out of the air using an air separation unit. In this procedure, ammonia is created when hydrogen and nitrogen combine under intense pressure and heat.

As customers become increasingly aware of and worried about the environmental effects of traditional fertilizers, the market for green ammonia is anticipated to grow:

The increased consumer desire for sustainable agriculture practices that lessen risk generation and carbon emissions is driving the demand for environmentally friendly fertilizers. The market for green ammonia is being driven by an increase in demand for organic fertilizers as a result of this. Green ammonia is created without the use of carbon by utilizing renewable energy sources, such as solar, wind, and hydropower. It offers a sustainable and greener alternative to the current natural gas-based ammonia manufacturing process. In the upcoming years, green ammonia sales are anticipated to be driven by the growing demand for environmentally friendly fertilizers that enhance soil health and lessen pollution.

Global Green Ammonia Energy Market Challenges:

The initial installation costs of green ammonia plants will be greater than those of conventional ammonia plants since they need more sophisticated electrolyzers:

The primary obstacle inhibiting the growth of the green ammonia sector right now is the investment nature of the facilities. However, green ammonia production facilities cost 1.5 times more than those that use fossil fuels to produce ammonia. Biogas or fuel, which accounts for 75% of the plant's running expenses, is the main financial cost in the manufacturing of ammonia. A green ammonia factory's operational expenses are increased by the cost of water electrolysis. Green ammonia plants are not economically feasible for small-scale production due to their greater capital investment.  The biggest barriers to market expansion may be pharmaceutical firms' poor expertise and the high cost of options.

COVID-19 Impact on Global Green Ammonia Energy Market:

In 2020, the expansion of COVID-19 had a detrimental effect on the world market for green ammonia. The extreme restrictions and countrywide lockdowns imposed by government officials to curb the spread of the fatal virus are having a considerable negative impact on downstream firms. Supply networks throughout the world have been badly impacted. However, agricultural businesses continued to have a significant need for fertilizers during the COVID era. Green ammonia demand is likely to increase shortly as the market slowly starts to reopen due to increased demand from the shipping industry. In the next years, the market will continue to grow as a result of increased demand for green ammonia in the Middle East, Africa, and Europe regions as a result of green hydrogen production initiatives.

Global Green Ammonia Energy Market Recent developments:

• In November 2021: Green Energy and Haldor Topsoe announced a Memorandum of Agreement creating cooperation to create effective and long-lasting solutions for the production of environmentally friendly ammonia inside Iceland.
• In July 2021:  The "Hevo Ammonia Development," a sustainable clean ammonia effort, will be developed in Morocco, according to proposals revealed by the Irish company Fusion-Fuel and the global construction company Consolidation Contractor Company.

GREEN AMMONIA ENERGY  MARKET REPORT COVERAGE:

Global Green Ammonia Energy Market Segmentation:

Global Green Ammonia Energy Market Segmentation: By Technology

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

The green ammonia energy market's most dominating sector, accounting for the highest proportion of the market, is alkaline water electrolysis. This is because the production of hydrogen via alkaline water electrolysis is an established technique that has been around for a while. It is an established technology with a high-efficiency rate and a comparatively low cost. Alkaline water electrolysis is a realistic method for producing large amounts of green ammonia since it is a straightforward procedure that is simple to scale up.

The market for green ammonia energy is experiencing the fastest growth in proton exchange membrane (PEM) electrolysis. This is so that it may function at a variety of loads and because PEM electrolysis offers various benefits over conventional electrolysis technologies, such as high efficiency, low operating temperatures, and low working pressures. Additionally, PEM electrolysis is a versatile technique that may be applied to a wide range of tasks, such as the creation of hydrogen, energy storage, and fuel cells.

Global Green Ammonia Energy Market Segmentation: By End User

• Transportation
• Power Generation
• Fertilizers
• Others

The green ammonia energy industry is dominated by the fertilizer sector, which holds the greatest market share. This is because ammonia, a crucial ingredient in fertilizer manufacturing, is becoming more and more in demand as consumers' desire for sustainable farming practices grows. A sustainable and greener alternative to conventional ammonia manufacturing, which uses natural gas as its fuel, is green ammonia. In the upcoming years, green ammonia sales are anticipated to be driven by the growing demand for environmentally friendly fertilizers that enhance soil health and lessen pollution.

The market for green ammonia energy is seeing the strongest growth in the power generation sector. This is because green ammonia may either be utilized directly as a fuel for electricity production or converted into hydrogen. Green ammonia may be created utilizing renewable energy sources including sun, wind, and hydropower as a sustainable and carbon-free substitute for conventional fossil fuels. The market for green ammonia in power generation is anticipated to expand as a result of the rising demand for renewable energy sources and the need to minimize carbon emissions.

Global Green Ammonia Energy Market Segmentation: By Sales Channel

• Direct Sale
• Indirect Sale

The green ammonia energy market's direct selling segment has the biggest market share and is the most dominating. This is because direct sales entail the sale of green ammonia from the producer to the final consumer without the use of middlemen. Large industrial clients who need a lot of green ammonia and have the necessary infrastructure prefer direct sales. Direct sales also provide producers the ability to keep control over the specifications and cost of their goods.

The market for green ammonia energy's indirect sales is the one that is expanding the fastest. This is because green ammonia is sold through middlemen like distributors, wholesalers, and retailers through indirect sales. Small and medium-sized clients that need green ammonia in lower amounts and lack the necessary equipment choose indirect sales. Additionally, companies may access a larger client base and expand their market share thanks to indirect sales.

Global Green Ammonia Energy Market Segmentation: By Region

• North America
• Europe
• Asia-Pacific
• South America
• Middle East and Africa

The green ammonia energy market is dominated by Europe, which accounts for the biggest market share. This is due to Europe's leadership in the shift to renewable energy sources and its aggressive carbon emission reduction goals. Additionally, Europe offers a feasible alternative for the production of green ammonia due to its developed infrastructure for the production and transport of ammonia. The market for green ammonia energy is the fastest-growing category in Asia-Pacific. This is because Asia-Pacific consumes the most ammonia-based fertilizers, and the need for environmentally friendly fertilizers is rising as a result of rising consumer demand for sustainable agriculture methods.

Key Players:

1. ACME Group
2. Ballance Agri-Nutrients
3. CF Industries Holdings, In
4. Dyno Nobel
5. Enaex Energy
6. Fertiglobe plc
7. Greenfield Nitrogen LLC
8. Haldor Topsoe
9. Nel Hydrogen
10. Origin Energy Limited