Demand for Green Ammonia to Reach $6.16 billion in 2030

Demand for Green Ammonia to Reach $6.16 billion in 2030

According to a research report, The global Green Ammonia Market is estimated to grow at a CAGR 66.0% between 2024 to 2030 to reach a market size of USD 6.16 billion by 2030, from an estimated USD 0.29 billion in 2024. The market is being driven by demand from green chemical makers and the power-generating industry. Similarly, the global push for sustainable and low-carbon solutions will also propel the market growth. It is gaining traction as a low-carbon alternative for fertilizers, maritime fuel, and hydrogen storage, driven by net-zero targets, stricter emission regulations, and government incentives. Rising demand for sustainable fertilizers and ammonia-powered vessels, along with advancements in electrolyzer efficiency and ammonia synthesis, are making it more viable. Additionally, its role as a hydrogen carrier supports the broader hydrogen economy, with countries like Japan, Germany, and the US investing heavily in its commercialization.

The development of a global hydrogen economy is driving the demand for green ammonia. As an efficient hydrogen carrier, green ammonia is crucial for transporting hydrogen over long distances and enabling its use in various applications, including power generation, transportation, and industrial processes.

Key Market Players

Siemens Energy (Germany),    

ThyssenKrupp AG (Germany),    

Nel ASA (Norway),    

Yara (Norway),    

AMGreen Ammonia (India)

ACME Group (India),    

Iberdrola, S.A. (Spain), among others...  

The International Renewable Energy Agency (IRENA) claims that solar and wind power have high potential and are likely to lead the market for renewable energy sources in the coming years. In 2022, global renewable energy capacity stood at 3,372 GW [2.79 terawatts (TW)], an increase of 9.6%. Renewable hydropower accounted for the largest share of the global total, with a capacity of 1,256 GW—hydropower accounted for the largest share (37%) of the installed capacity. In 2022, solar and wind energy accounted for most of the remainder, with total capacities of 1,053 GW and 899 GW, respectively. Other renewable capacities included 149 GW of bioenergy, 15 GW of geothermal, plus 524 MW of marine energy.

The rapid growth of solar and wind energy, driven by rising investments and falling costs, is increasing the need for efficient energy storage. Limited grid connectivity prevents full utilization of renewable power, making hydrogen a key storage solution. Converting surplus energy into hydrogen and storing it as ammonia, which has a higher energy density and is easier to transport than liquid hydrogen, enhances energy supply reliability. As renewable energy generation expands, the demand for green ammonia as a storage and transport medium will grow.

Power generation, by End-use applications, is expected to be the largest segment in the green ammonia market

The combination of green ammonia production with renewable energy sources such as wind and solar power helps to repurpose excess electricity that would otherwise be wasted. This integration encourages the use of renewables and aids in the transition to a more sustainable energy system. Governments are establishing regulations, subsidies, and incentives to encourage green ammonia production and use. These governmental initiatives encourage investment in green ammonia projects, which drives market growth. Countries with substantial renewable energy resources are investing in green ammonia production for export. Green ammonia may be transported and exchanged internationally, creating economic possibilities for producing nations while also helping to the global energy revolution.

Solid Oxide Electrolysis, by technology, is expected to be the fastest-growing segment during the foecast period

Solid oxide electrolysis cells (SOECs) operate at high temperatures, often between 700 and 1,000°C, allowing for greater electrical efficiency than conventional electrolysis methods. The high working temperature lowers the energy required for electrolysis, making SOE more efficient and cost-effective in the long term. SOECs may include waste heat from industrial operations and other high-temperature sources. This integration increases total system efficiency and decreases the amount of energy required for hydrogen generation, making SOE a more appealing alternative for green ammonia production. SOE technique uses less power per unit of hydrogen generated than low-temperature electrolysis methods because it is more efficient. This reduction in power use results in lower operational expenses, especially in areas with high electricity rates.

Europe is expected to dominate the green ammonia market

To minimize carbon emissions, Europe has implemented rigorous rules and set ambitious climate targets. The European Green Deal intends to make the EU climate-neutral by 2050, including considerable investments in renewable energy and green technology. Subsidies, tax breaks, and grants for green ammonia projects all help to drive market expansion. Europe is home to renowned research organizations and firms pioneering breakthrough green ammonia technology. Continuous innovation and technical improvements in electrolysis, ammonia synthesis, and energy storage are increasing the efficiency and cost-effectiveness of green ammonia manufacturing. In addition to this, the growing public knowledge and support for sustainable energy and climate action is boosting demand for green ammonia. The general public and stakeholders are campaigning for greener energy options, encouraging businesses and governments to incorporate green ammonia into their sustainability initiatives.