How Green Ammonia Is Accelerating Sustainability

 How Green Ammonia Is Accelerating Sustainability

Ken Silverstein

Senior Contributor

I cover global energy and climate issues.

In a pivotal move towards sustainability, Hygenco Green Energies is pioneering the production of green ammonia in India. This significant step supports Ameropa's shift towards sustainable agriculture, underlining the importance of this partnership.

Green ammonia, derived from renewable energy sources, is a product of technological advancements, cost competitiveness, and supportive policies promoting renewable energy and climate action. As these technologies mature and costs decline, green ammonia is poised to play a central role in the decarbonization of heavy industries.

This agreement shows that all signs point to net zero. It also underscores India's desire to take a leading position globally in the green ammonia sector. By harnessing its renewable energy resources, India is setting a powerful example. As Amit Bansal, co-founder and chief executive of Hygenco Green Energies, rightly pointed out, this is a moment of pride for India and a source of inspiration for others.

The production of green ammonia could help decarbonize heavy industries like steel, shipping, and chemicals, which typically rely on fossil fuels to run their operations. This could be a game-changer for reducing greenhouse gas emissions in these sectors.

According to the International Energy Agency, while 29% of the electricity sector is decarbonizing, only 10% of industrial process heat is doing so. This is a stark reminder of the urgency to act. In reality, electricity accounts for 20% of energy worldwide, industrial use comprises 26%, and transportation and building use make up the balance. The need to decarbonize industrial process heat is more pressing than ever. We risk falling short of our 2050 carbon-neutrality goals unless we address this.

Green ammonia is typically produced through electrolysis, where water is split into hydrogen and oxygen using electricity. The hydrogen produced in this process is then combined with nitrogen to make ammonia. The key difference between green ammonia and traditional—grey—ammonia is the source of hydrogen. Whereas renewable energy produces green ammonia, fossil fuels make grey ammonia.

Driving Market Growth And Adoption

According to Roots Analysis, the global green ammonia market is projected to reach $701 million by 2024, with an anticipated growth rate of more than 72% from 2024 to 2032. DNV GL predicts that ammonia fuel will be widely adopted starting in 2037 and will constitute 25% of the maritime fuel mix by 2050. This trajectory is good news in the journey towards decarbonization.

First Ammonia and Germany’s Uniper will produce green ammonia from renewable power at First Ammonia’s Texas-based facility in 2026. They are working together to deliver green ammonia to Uniper so that it can help its industrial customers reduce greenhouse gas emissions.

They will use a solid oxide electrolyzer, which creates an electric current that splits the hydrogen and oxygen from water. They say their process is 30% more energy efficient than a conventional electrolyzer, meaning less electricity is required to produce the same output. It’s a zero-carbon ammonia that will help Uniper accelerate the energy transition for its customers.

“Our focus on greener gases will allow Uniper’s customers to switch from carbon-intensive ammonia to green and blue ammonia and thus avoid a significant amount of greenhouse gas emissions,” said Uniper’s Chief Commercial Officer Carsten Poppinga, in a release.

Green ammonia has various applications, making it a promising candidate for decarbonizing hard-to-abate sectors:

— It is used in agriculture as a fertilizer;

— It can also be used as a fuel or an energy carrier, and

— Industrial processes can also use ammonia, including as a chemical feedstock.

Green ammonia is still a developing concept. However, some encouraging signs and anecdotes illustrate its potential. For instance, projects in Denmark and Australia are exploring the production of green ammonia using renewable energy sources like wind and solar power. Major shipping, energy, and agricultural companies are also interested in green ammonia.

Yara, Mitsubishi Corp., ENGIE, and Air Liquide are among the enterprises researching and developing energy sources and conducting pilot projects. For example, Yara Clean Ammonia is collaborating with Scatec, the Egyptian Petrochemicals Holding Company and Misr Fertilizers Production Company to produce renewable ammonia.

This momentum positions green ammonia as a catalyst to more sustainable industrial practices, reflecting a shared commitment to environmental stewardship and a low-carbon future. Future success depends on attracting capital, building scale, and cutting costs—integral to reducing heavy industry's greenhouse gas emissions.