Dublin, Nov. 13, 2024 (GLOBE NEWSWIRE) -- The "Middle East & Africa Green Ammonia Market, By Country, Competition, Forecast & Opportunities, 2019-2029F" report has been added to ResearchAndMarkets.com's offering.
Middle East & Africa Green Ammonia Market was expected to reach a significant value of USD 415.20 Million in 2023 and is anticipated to project robust CAGR growth of 6.87% in the forecast through 2029
The Middle East and Africa (MEA) region, renowned for its role as a global energy powerhouse, is now at the forefront of a paradigm shift towards green ammonia production. Green ammonia, produced through the synthesis of nitrogen and hydrogen using renewable energy sources, is emerging as a sustainable alternative to traditional ammonia production methods.
With the world's growing concern for sustainability and the need to reduce carbon emissions, the MEA region, rich in renewable energy potential, is strategically positioned to become a key player in the green ammonia market. The collective investment in renewables for Africa and the Middle East accounted for just 1.6% of the global total, approximately USD 8.4 billion. Israel led the region with a 9.2% growth in investment, reaching USD 0.99 billion.
Historically, the MEA region has held a dominant position in the global energy landscape, primarily due to its abundant reserves of oil and gas. However, as environmental issues take center stage, there is a shift towards green ammonia production as a means to reduce carbon emissions. This historical dependence on fossil fuels is now being challenged as the region transitions towards more sustainable energy solutions.
The MEA green ammonia market is witnessing notable growth, with an increasing number of key players actively contributing to its development. Prominent industry leaders in the region include Qatar Energy, Yara International, and SABIC. These companies are driving advancements in green ammonia production and shaping the market's trajectory. The Middle East contributes approximately 8.5% to the global ammonia capacity, with QAFCO (Qatar), NPC (Iran), SABIC-Agri (Saudi Arabia), and Ma'aden (Saudi Arabia) holding the majority share of capacity in the area.
Ranking as the third-largest exporter globally, the region accounts for 15% of total exports, with a significant portion flowing to Asia, particularly India. Green ammonia finds diverse applications across various sectors, including agriculture, transportation, and industrial processes. It serves as a sustainable fertilizer in agriculture, a clean fuel for transportation, and a raw material for various industries. The versatility of green ammonia positions it as a critical driver of its adoption in the MEA region.
Production Method Insights
Based on the production method, the Alkaline Water Electrolysis segment emerged as the dominant segment in the Middle East & Africa market for Green Ammonia in 2023. This can be driven by its cost-effectiveness, reliability, integration with renewable energy, strong demand for green ammonia, potential for hydrogen and ammonia export, government support, and its role in serving various industrial sectors.
Alkaline water electrolysis is known for its cost-effectiveness, making it an attractive option for green ammonia production in the MEA region. This cost advantage is especially important in regions where cost efficiency is a priority. Alkaline water electrolysis is a well-established and proven technology with a history of reliable operation. This reliability instills confidence in investors and project developers, driving its adoption in the MEA region.Alkaline electrolyzers can effectively integrate with renewable energy sources like solar and wind power. The MEA region has abundant solar and wind resources, making it a strategic choice for green ammonia production via alkaline water electrolysis.
Green ammonia production relies on a source of green hydrogen. Alkaline water electrolysis is a reliable and efficient method for producing green hydrogen, which is then used as a feedstock for green ammonia synthesis. The MEA region has significant demand for ammonia, particularly in sectors like agriculture for fertilizer production and in various industrial applications.
The ability to produce green ammonia locally is a key driver for the adoption of alkaline water electrolysis. Green hydrogen and green ammonia are valuable commodities for export. The MEA region's geographic location and access to global markets position it as a potential exporter of green ammonia produced through alkaline water electrolysis. Some governments in the MEA region have taken proactive steps to promote the development of green ammonia projects. Policy support, financial incentives, and regulatory backing have favored the adoption of alkaline water electrolysis for green ammonia production.
End Use Insights
Based on the end use, the power generation segment is the fastest growing segment in the MEA market for green ammonia is driven by its role in energy storage, renewable energy integration, decarbonization efforts, energy export potential, and its contribution to grid stability and energy security.
Green ammonia has the potential to be used as an energy carrier and storage medium. It can help stabilize energy grids, especially in regions with intermittent renewable energy sources like solar and wind. Power generation applications benefit from the flexibility of green ammonia in ensuring a stable and reliable energy supply. The MEA region has significant renewable energy potential, including abundant sunlight and wind resources. Green ammonia can play a crucial role in storing excess energy generated from renewables during peak production and releasing it during periods of high energy demand. This integration supports the growth of the power generation sector and enhances its reliability.
Many countries in the MEA region have set ambitious decarbonization targets and are seeking to reduce greenhouse gas emissions from power generation. Green ammonia, as a clean energy carrier, aligns with these goals and serves as a key element in transitioning to a low-carbon power generation sector. Green ammonia can be converted back into hydrogen, which can be used in fuel cells or gas turbines for power generation. The flexibility of green ammonia to produce hydrogen for power generation applications is a driving factor for the dominance of the power generation segment.
Some countries in the MEA region are exploring the export of green ammonia as a form of energy carrier. The power generation sector is integral in the production and export of green ammonia, which positions the segment as a dominant player in the global green ammonia trade.
Report Scope:
Key Market Players
- AMEA Power
- Hynfra and Amarenco MENA
- ACME Group
- Hive Energy Ltd
- TAQA and AD Ports Group
- NEOM Green Ammonia Co.
Middle East & Africa Green Ammonia Market, By Production Method:
- Alkaline Water Electrolysis
- Proton Exchange Membrane
- Solid Oxide Electrolysis
Middle East & Africa Green Ammonia Market, By End Use:
- Power Generation
- Transportation
- Fertilizers
- Others
Middle East & Africa Green Ammonia Market, By Country :
- Saudi Arabia.
- UAE
- Egypt
- South Africa
- Qatar
- Kuwait
- Bahrain
- Morocco
- Algeria
- Turkiye
For more information about this report visit https://www.researchandmarkets.com/r/kjw3u1
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