| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 781.92 Million |
| 2025 Market Size | USD 1,308.28 Million |
| 2032 Forecast | USD 48,215.42 Million |
| Growth Rate (CAGR) | 67.52% |
| Largest Region | Europe |
| Fastest Growing Region | APAC |
| Nature of the Market | Fragmented |
| Largest End User Category | Fertilizers |
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The global green ammonia market size was USD 781.92 million in 2024, and it will grow at a CAGR of 67.52% during 2025–2032, to reach USD 48,215.42 million by 2032. This is credited to the several industrial projects that have been involved in producing this chemical, which are currently underway in Oceania, Mauritania, and Oman. This is itself owing to the increasing environmental concerns and rising awareness of sustainable fuels and industrial feedstock.
The mounting demand for green ammonia is intrinsically connected to the global shift toward sustainable energy solutions to achieve carbon reduction goals. To reach the agreed-upon climate targets, numerous nations plan to use green ammonia as an energy carrier for its versatility and low ecological impact.
A growing number of government and corporate companies are now committed to achieving net-zero emissions by 2050. Green ammonia is synthesized using renewable energy sources, such as wind or solar, for the electrolysis of water and the extraction of nitrogen.
As per the International Renewable Energy Agency (IRENA), the demand for NH3 globally is expected to rise to 688 million tonnes by 2050, with the demand for the green variant alone being 566 million tonnes. Green ammonia's role as a marine fuel is picking up momentum as it leads to zero emissions. This way, it assists in moderating water pollution and, in turn, protecting aquatic biodiversity and habitats.
According to the IRENA, the 15-metric-tonne annual capacity manufacturing capacity of renewable ammonia plants is targeted to be achieved by 2032, and it will be around 8% of the current ammonia production across 54 projects. Essentially, the stringent emissions regulations and zero-emission goals are propelling the production of NH3 via clean methods. Additionally, as agricultural practices shift toward more sustainable methods, the demand for green ammonia-based fertilizers is likely to rise.
The green ammonia market growth will depend on how rapidly the cost of producing this chemical can be reduced. Pilot uses will be more frequent in the near future due to the awareness regarding zero emissions. The EU, North America, and APAC have set priorities, since their major economies have agreed to the legally binding target of net zero by 2050.
Furthermore, there is also a growing understanding that long-term sustainable energy storage and appropriate green ammonia usage in producing fertilizers, electricity, and other products do not harm the environment.
The AWE category accounted for the largest share, of 55%, in 2024. This will be attributed to the increase in the number of green hydrogen projects in many countries, such as Australia, China, and Germany, which are focusing on investing in the development of a hydrogen-based economy.
The investments in hydrogen infrastructure will subsequently bring opportunities for green ammonia production through this technology, which is traditional, cost-effective, and mature. Various industrial plants use this method for the manufacturing of this chemical. For instance, Asahi Kasei, a Japanese technology company, inaugurated its new hydrogen pilot plant in Kawasaki, Japan, in May 2024. This facility aims to develop a commercial multi-module 100 MW-class alkaline water electrolysis system for the production of green hydrogen.
Solid oxide-electrolysis is the fastest-growing category in the market. The process operates at a high temperature, which augments the hydrogen output. This method optimizes the energy consumption for production and the overall cost as its capacity to utilize waste heat from industrial procedures enhances the overall energy equilibrium. This integration can substantially boost the efficiency of hydrogen production.
The production methods evaluated here are:
Fertilizers are the largest application of eco-friendly ammonia, as this chemical is widely used as a feedstock for inorganic, nitrogen-containing fertilizers.
Green ammonia usage for manufacturing fertilizers is considered an important part of the decarbonization strategy, and it has been adopted by various countries to reduce greenhouse gases. This method can lead to 100% carbon reduction, which helps in the attainment of eco-friendly goals.
The market growth of traditionally generated ammonia in recent years has been aided by the high product penetration in the agricultural sector and ample product availability as a feedstock for fertilizer manufacturing. According to the International Energy Agency (IEA), 70% of ammonia produced globally is used for fertilizers.
However, employing a lot of traditionally produced ammonia in agriculture poses long-term risks to the terrestrial ecology, through the emission of greenhouse gases. Furthermore, the demand for carbon-neutral fertilizers was sparked by rising environmental concerns, combined with the implementation of decarbonization targets in various nations, which is intensifying the green ammonia market growth.
Thus, clean ammonia is both a viable fuel and a more environmentally friendly raw material for fertilizers. High-potential renewable sources, such as solar and wind, are expected to rule the market for renewable energy in the next many years.
Transportation is the fastest-growing category in the market, with a CAGR of 71.43%, because this sector is facing mounting pressure to curtail greenhouse gas emissions. Green ammonia is a zero-carbon fuel for various vehicles—ships, trucks, and other heavy-duty vehicles—because it aligns with global decarbonization goals.
The maritime industry is, however, particularly investigating green ammonia as a fuel due to its zero-carbon properties and low sulfur emissions. Various international organizations, including the International Maritime Organization and the United States Maritime Administration, are taking initiatives and implementing strict regulations to accelerate the adoption of ammonia.
The end uses analyzed here are:
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Europe dominates the green ammonia market with a 35% share in 2024. The European Union aims to align its transportation, climate, and energy policies with its goal of diminishing GHG emissions by approximately 55% by 2032 and becoming carbon-neutral by 2050.
The European Commission’s RePowerEu initiative aims to diminish the EU’s reliance on non-renewable energy imports. By 2032, it plans to achieve a domestic production of 10 million tonnes of renewable hydrogen and renewable hydrogen import of the same magnitude.
Additionally, the plan supports the import of 4 million tonnes of hydrogen-as-ammonia, eventually contributing to the goal of increasing clean hydrogen utilization from 7 to 20 million tonnes annually. Further, according to the Ammonia Energy Association, Germany is aiming the import 1.8 million tonnes of clean hydrogen by 2032.
APAC is the fastest-growing regional market, rising at a CAGR of ~70% during the forecast period. This is primarily attributed to governments’ stringent regulations and the UN's commitment to ensure zero emissions by 2050.
Japan accounts for the second-fastest growth, which is because of the Japanese government’s commitment to carbon neutrality by 2050. To reach the target, the country is planning to import huge volumes of hydrogen and ammonia, to focus on reducing its greenhouse emissions, and developing manufacturing capabilities in Japan.
Pilot projects will be more frequent in the near future due to the awareness regarding zero emissions. The EU, North America, and APAC have set priorities since their major economies have agreed to the legally binding target of net zero by 2050.
The geographical breakdown of the market is as follows:
The green ammonia market is fragmented in nature. Diverse production methods, such as alkaline-water electrolysis, proton exchange membranes, and solid-oxide electrolysis, are being explored, leading to different revenue opportunities for companies. The market has a variety of end uses, ranging from fertilizers to transportation, each requiring green ammonia in different capacities. All these factors contribute to the fragmented and competitive landscape of the market, broadening the scope for new players with new production methods targeting innovative applications.
In June 2024, Hygenco Green Energies Private Limited and Ameropa entered into a strategic partnership to facilitate green ammonia supply from India. Their new facility at Gopalpur Port, Odisha, which will produce 600 tonnes per day in the first phase, is targeted for commercial operations by 2027. By 2032, the project aims at a volume of 1.1 million tonnes per year.
In May 2024 Cepsa chose Thyssenkrupp Nucera AG & Co. KGaA as its supplier for 300-Megawatt-combined-capacity alkaline-water electrolyzers, to be used in its new green hydrogen plant in Spain. With a capacity of 20 MW each, 15 scalum electrolyzer units from Thyssenkrupp Nucera will be utilized for the production of green hydrogen.
In April 2024, ReNew E-Fuels signed a collaboration agreement with JERA to build a green ammonia production plant in Paradip, Odisha. The project will use around 500 MW of renewable energy with a high capacity utilization factor to yield green hydrogen. It aims to have a production capacity of nearly 100,000 tonnes per year by 2032.
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