New York, Dec. 14, 2023 (GLOBE NEWSWIRE) -- In 2023, the global market for green ammonia reached a valuation of $97.8 million and is projected to witness substantial growth, aiming to reach $4,517.6 million by 2030. This expansion is anticipated at a remarkable compound annual growth rate (CAGR) of 72.9% from 2023 to 2030.
Green ammonia is synonymous with the production of environmentally friendly and carbon-free ammonia. It involves harnessing energy from renewable sources such as solar, wind, and hydropower, which is then directed into an electrolyzer. The electrolyzer extracts hydrogen from water, and an air separation unit separates nitrogen from the air. The resulting hydrogen and nitrogen undergo a reaction at elevated temperatures and pressures to produce ammonia. The growing investment in renewable energy projects and a decline in the cost of power generation are expected to be key drivers for the green ammonia market.
Currently in its nascent stages, the green ammonia industry is witnessing increased focus on research and development efforts, anticipated to escalate due to growing public awareness and government regulations addressing carbon dioxide emissions and environmental conservation.
Green ammonia has the potential to significantly reduce global dependence on fossil fuels and contribute to lowering greenhouse gas emissions. Generated through the electrolysis of water using renewable energy sources such as solar, wind, and hydropower, green ammonia finds applications across various industries, including agriculture, energy storage, and maritime activities.
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Market Scope:
| Report Coverage | Details | |
| Market Revenue 2023 | US$97.8 Mn | |
| Projected Market Value (2030F) | US$4,517.6 Mn | |
| Global Market Growth Rate (CAGR 2023 to 2030) | 72.9% | |
| Forecast Period | 2023-2030 | |
| No. of Pages | 157 Pages | |
| Market Segmentation | By Production Process Location, By End Use, By Region | |
| Regions Covered | North America, Europe, East Asia, South ,Asia & Oceania, Latin America, Middle East & Africa | |
| Key Companies Profiled | CF Industries Holdings, Inc, BASF SE, Yara, International ASA, Maire Tecnimont S.p.A., ACME Group, Fertiglobe plc, NEL Hydrogen | |
Green Ammonia Market Dynamics
Growth Drivers:
In the upcoming years, a substantial shift toward zero-carbon practices, driven by stringent pollution regulations and a focus on zero-emission goals, is expected to propel the use of green ammonia. By 2032, the green ammonia industry is forecasted to represent 3 to 4 percent of the total ammonia market. The fertilizer end-user segment is also projected to witness a growth rate of approximately 75.4% between 2023 and 2032, driven by a preference for green ammonia in fertilizer production.
The industry's growth is further fueled by robust developments in end-use sectors like transportation, fertilizer manufacturing, and electricity production. Strict regulations, coupled with the increasing popularity of green fertilizers, contribute to the positive trajectory. Increased technological advancements, rising governmental and private investments, and the decreasing cost of renewable energy production are also anticipated to enhance the industry's growth prospects.
Over the next decade, the expansion of green ammonia applications in various large-scale facilities is expected to drive revenue. Its zero greenhouse gas emissions make green ammonia a promising fuel for the transportation industry, particularly in marine and ocean applications.
Despite promising opportunities, several challenges hinder industry expansion. These challenges include the significant initial investment required for green ammonia plants, limited understanding of green ammonia, and associated manufacturing equipment.
Restraints:
The capital-intensive nature of green ammonia plants poses a significant barrier to market expansion. The typical lifespan of such plants is 15 to 20 years, and the capital expenditure (CAPEX) costs for greenfield projects range from USD 1,300 to 2,000 per tonne of ammonia produced. Green ammonia is currently 1.5 times more expensive than ammonia facilities powered by natural gas. Until the costs of renewable energy generation and electrolyzers decrease further, transitioning from traditional ammonia production to green ammonia production remains economically unfeasible for general ammonia producers, impeding market growth.
Opportunities:
The growing global demand for biofuels, driven by countries' efforts to achieve net zero-emission targets, presents a significant opportunity for the green ammonia market. Biofuels, which reduce greenhouse emissions by up to 65%, are becoming increasingly popular. The rising demand for suitable biofuel crops supports the agricultural industry, and biofuels offer a cost-effective alternative for buildings, companies, and automobiles. As countries aim to reduce dependence on oil imports, initiatives like the European Union's Renewable Energy Directive and the U.S. Renewable Fuels Standards Program contribute to the expansion of the biofuel sector.
Market Challenges:
Challenges facing the green ammonia market include a lack of knowledge about green ammonia technologies and the high initial installation costs of green ammonia plants. The development of green ammonia technologies is still in its early stages, requiring significant research and development expenditures. The main hindrance to market expansion is the capital-intensive nature of green ammonia plants, making them economically unviable for small-scale production due to higher initial investment costs. Limited awareness among pharmaceutical companies and the high costs associated with alternative options pose additional challenges to market growth.
In a nutshell, the Persistence Market Research report is a must-read for start-ups, industry players, investors, researchers, consultants, business strategists, and all those who are looking to understand this industry. Get a glance at the report at: https://www.persistencemarketresearch.com/market-research/green-ammonia-market.asp
Recent Innovations in Green Ammonia Market:
Advanced Electrolysis Technologies: Innovations in electrolysis processes, especially in the development of more efficient and cost-effective electrolysers, have been a focus. High-temperature electrolysis and solid oxide electrolysis cells are examples of technologies that could enhance the overall efficiency of green ammonia production.
Renewable Energy Integration: Continuous efforts have been made to optimize the integration of renewable energy sources, such as wind and solar power, into the production process. Innovations in hybrid systems that combine multiple renewable sources for consistent energy supply are of interest.
Catalyst Development: Advances in catalyst technology play a crucial role in improving the efficiency of ammonia synthesis. Researchers are exploring novel catalysts that enhance the conversion of nitrogen and hydrogen into ammonia while minimizing energy consumption.
Carbon-Free Hydrogen Production: As hydrogen is a key component in green ammonia production, innovations in carbon-free hydrogen production methods, such as biomimetic catalysis and photo electrochemical processes, have the potential to make the overall process more sustainable.
Decentralized Production Models: Innovations in small-scale and modular green ammonia production systems are being explored. These models offer flexibility and can be deployed in decentralized locations, reducing the need for extensive infrastructure.
Integration with Agriculture: Innovations are being explored to integrate green ammonia directly into agricultural practices as a sustainable fertilizer. This involves optimizing the application of green ammonia in precision agriculture to enhance crop yield while minimizing environmental impact.
Key Companies: CF Industries Holdings, Inc, BASF SE, Yara International ASA, Maire Tecnimont S.p.A., ACME Group, Fertiglobe plc, NEL Hydrogen, ThyssenKrupp AG, ITM Power, Holder Topsoe
Green Ammonia Market Segmentation:
By Production Process:
Alkaline Water Electrolysis: This method involves the use of alkaline electrolysers to split water into hydrogen and oxygen, with the hydrogen used in the synthesis of green ammonia.
Alkaline water electrolysis is known for its simplicity and cost-effectiveness, making it a notable choice in green ammonia production.
Proton Exchange Membrane (PEM): PEM electrolysis utilizes a membrane to separate hydrogen ions, resulting in the production of high-purity hydrogen for ammonia synthesis.
This process is characterized by its efficiency and suitability for applications requiring high-purity hydrogen.
By End Use:
Fertilizer: Green ammonia serves as a sustainable alternative in the production of fertilizers, contributing to environmentally friendly agriculture practices.
The fertilizer industry is a major consumer of green ammonia, promoting sustainable and responsible use in crop cultivation.
Transportation: Green ammonia is gaining traction as a potential carbon-neutral fuel for transportation, offering a cleaner alternative to traditional fuels.
The transportation sector includes the use of green ammonia in fuel cells or as a direct fuel for certain applications.
Power Generation: Green ammonia can be utilized in power generation through combustion or as a fuel in advanced power plants.
Power generation applications contribute to the diversification of clean energy sources.
Industrial Feedstock: Industries use green ammonia as a feedstock in various chemical processes, reducing reliance on traditional ammonia derived from fossil fuels.
This segment highlights the versatility of green ammonia as an eco-friendly industrial input.
By Region:
North America: North America plays a key role in the green ammonia market, driven by sustainability initiatives, technological advancements, and supportive policies.
Europe: Europe is a leading region in adopting green technologies, with a strong focus on reducing carbon emissions in various industries, including ammonia production.
East Asia: East Asia showcases significant growth in green ammonia, propelled by advancements in technology, government initiatives, and the region's commitment to sustainability.
South Asia & Oceania: Increasing environmental awareness and the pursuit of sustainable practices contribute to the growth of the green ammonia market in this region.
Latin America: Latin America exhibits potential for green ammonia adoption, driven by agricultural activities, renewable energy potential, and environmental conservation efforts.
Middle East & Africa: The Middle East, known for its ammonia production, is exploring the shift to green ammonia to align with global sustainability goals.
Key Takeaways from Green Ammonia Market Research Report:
Exponential Growth: The global green ammonia market is expected to skyrocket from $97.8 million in 2023 to $4,517.6 million by 2030, exhibiting a phenomenal CAGR of 72.9%.
Decarbonization Champion: Green ammonia's carbon-neutral nature aligns perfectly with global net-zero emission goals, making it a crucial player in the fight against climate change.
Hydrogen Economy Catalyst: As the hydrogen economy flourishes, green ammonia will play a vital role as a hydrogen storage and transportation medium.
Policy Push: Governments worldwide are actively supporting the green ammonia market through financial incentives and regulatory measures, accelerating its development.
End-Use Boom: Green ammonia has widespread applications beyond fertilizers, including power generation, shipping, and various industrial processes, further fueling market growth.
Cost Hurdle: High initial installation costs for green ammonia plants compared to traditional production methods remain a significant challenge.
Technological Leap: Continuous advancements in green ammonia production technologies are needed to improve efficiency, scalability, and cost-effectiveness.
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