| Study Period | 2019 - 2032 |
| 2024 Market Size | USD 79.1 Million |
| 2025 Market Size | USD 126.7 Million |
| 2032 Forecast | USD 3,579.7 Million |
| Growth Rate (CAGR) | 61.2% |
| Largest Region | North America |
| Fastest Growing Region | Asia-Pacific |
| Nature of the Market | Consolidated |
| Largest Application Category | Chemicals |
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The blue ammonia market size is approximately USD 79.1 million in 2024, and it will grow by 61.2% during 2025–2032, reaching USD 3,579.7 million by 2032.
Governments globally are prioritizing low-emission and green technologies to meet their climate goals, and ammonia plays a crucial role in this for the energy and agriculture sectors. Blue ammonia, produce with a lower carbon footprint, from natural gas with the carbon capture technology, is quickly emerging as an alternative to the conventional grey variant.
The consumption of blue ammonia is growing not just because of its benefits for the environment but also the increasing investment in infrastructure for its storage, transportation, and production. As countries transition to low-emission fuels, this feedstock will play a vital role in their power generation, agriculture, and shipping industries.
Globally, governments are offering incentives and subsidies to promote the adoption of CCUS technologies, as part of their carbon reduction strategies. With the increasing stringency of carbon emission regulations worldwide, industries that rely on ammonia are under pressure to adopt low-carbon alternatives.
In March 2023, Clean Ammonia (Yara), a Yara International ASA company, and Enbridge Inc. signed a letter of intent to collaborate on building a low-carbon blue ammonia production facility as equal partners. The proposed facility, which will incorporate autothermal reforming with the carbon capture technology, will be located at the Enbridge Ingleside Energy Center (EIEC) near Corpus Christi, Texas.
Blue ammonia, produced with CCUS technologies, is emerging as a low-carbon alternative to traditional ammonia. As its cost falls, it could play a significant role in the hydrogen economy as a carrier for this gas and, ultimately, a storage solution for energy. With the rise of hydrogen as a clean energy source, ammonia (especially blue ammonia) is being seen as an efficient medium for hydrogen storage, transportation, and distribution.
Governments globally are introducing policies and setting targets to reduce carbon emissions. One of the sectors being targeted is agriculture, where nitrogen-based fertilizers, for which NH3 is the key raw material, is critical. By using blue ammonia, this primary sector could massively reduce its carbon footprint, as it accounts for almost 10% of the global direct and indirect emissions.
In November 2024, DL E&C signed a USD 35-million contract with Genesis Fertilizers at the Embassy of Canada in Seoul to lead the front-end engineering design phase of a fertilizer plant in Belle Plaine, Saskatchewan. The plant will process 1,500 tons of blue ammonia daily and produce 1.05 million tons of fertilizers annually.
In the same vein, in July 2024, Johnson Mattthey and Thyssenkrupp Uhde announced the signing of an MoU to collaborate on delivering a fully integrated low-carbon blue ammonia solution.
As industries and governments set off on the path to decarbonization, reducing carbon emissions from industrial processes is a key priority. The industrial sector is one of the major emitters of carbon and extremely hard to decarbonize. Because ammonia is a key input for many chemicals, fertilizers, and various industrial processes, its production needs to evolve to low-carbon pathways.
Blue ammonia is being adopted as a carbon-neutral fuel for power generation, especially in sectors looking to phase out coal and other high-emission energy sources. Another Way it could help in decarbonization is via its usage in ammonia-fired power plants, to replace natural gas and coal. Even though only 20% of the global final energy consumption is in the form of electricity, its generation releases 40% of the emissions, as per the World Nuclear Association.
In December 2023, Centrica and Mitsubishi Power Europe unveiled plans to construct Europe’s first ammonia-based electricity generation plant in Ireland, with the goal of cutting emissions and showcasing low-carbon ammonia technology.
NH3, as a zero-emission marine fuel, is growing increasingly common as a result of the implementation of ambitious goals by the International Martine Organization (IMO) and other international shipping organizations to cut emissions related to shipping. According to the International Energy Agency (IEA), emissions from the shipping industry grew from 502 million tons in 2000 to 706 million tons in 2022.
In the direction of clean-fuel ships, Eastern Pacific Shipping (EPS) announced a collaboration with Hyundai Heavy Industries, MAN Energy Solutions, the China State Shipbuilding Corporation, ABS, and Lloyd’s Register in September 2023 to develop ammonia engines for the new fleet of EPS.
Similarly, in November 2023, Yara International ASA and North Sea Container Line announced a partnership to develop a clean ammonia ship, named Yara Eyde. The vessel will start sailing between Germany and Norway in 2026.
A new landmark was established in regard to ammonia-fueled ships in March 2024 with the first trial of offshore supply ship Fortescue Green Pioneer at the Port of Singapore. During the trial, a mix of ammonia and diesel was used to power the ship.
CCUS, which is central to blue ammonia production, involves capturing the carbon emissions produced during ammonia synthesis, compressing them, and either storing them or transporting them via pipelines or tankers for further usage as a chemical feedstock. This technology is expensive, both in terms of implementation and operations.
Because CCUS enables regulatory compliance, many companies are integrating it into their ammonia plants. However, this increases the overall cost of the final product, thus scaring away small and mid-scale end users from purchasing it and forcing them to rely on the conventional grey variant instead.
Moreover, the high production cost makes it more difficult to attract investments in blue ammonia projects. Investors are often worried about the high upfront capital expenditure in CCS infrastructure and the uncertainty around long-term return due to the high operating costs.
The technologies analyzed in this report are:
The applications analyzed in this report are:
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North America leads the blue ammonia market. The U.S. has significant natural gas reserves, and it also imports it in massive volumes, thus ensuring the ready availability of this essential feedstock for ammonia production. With the advancement in CCS technologies, the country is producing increasing volumes of ammonia with reduced CO2 emissions.
In the U.S., the Inflation Reduction Act (IRA) and investments in clean energy infrastructure are driving the development of sustainable technologies, including blue ammonia production. The IRA aims to address the domestic inflation largely driven by the global energy crisis and climate change. One of its primary objectives is to cut carbon emissions by approximately 40% by 2030.
CCS incentives are also contributing to the adoption of blue ammonia. In June 2024, Canada implemented the CCUS ITS legislation, which refunds the tax credit on expenditures incurred in efficient CCUS projects and operations.
APAC is the fastest-growing regional market over the forecast period. This is because APAC countries, especially Japan, China, and South Korea, have set strong decarbonization goals. They are actively working to reduce carbon emissions across various sectors, including energy and manufacturing.
The APAC region has a massive agriculture sector, and ammonia is a key raw material for fertilizers. With the increasing pressure on industries to reduce carbon emissions, blue ammonia is being adopted as a sustainable solution for the production of fertilizers and other chemicals.
In October 2024, the Central Transmission Utility of India announced the plan to set up an interstate transmission system network to support 19,500 MW of renewable energy by FY30. This network will cater to the clean hydrogen and ammonia production plants in Gujarat, Andra Pradesh, and Tamil Nadu.
In May 2023, Thenamaris LNG, a ship management company based in Athens, delivered the first certified blue ammonia cargo to China. The shipment was transported on the LPG carrier SEATEAM, which left Ras Al-Khair, Saudi Arabia, on May 22 for Lianyungang, China. Ras Al-Khair is home to one of the largest ammonia production facilities globally. It is operated by the Saudi Arabian Mining Company, in partnership with Saudi Basic Industries Corporation (SABIC).
The regions and countries analyzed for this report include:
This market is consolidated because a few major players have a larger share and a wide regional presence. The government policies and incentives supporting the production, storage, supply, and usage of blue ammonia vary across countries. Some governments have aggressive green energy policies, while others are still in the early stages. Additionally, different kinds of end users exist, who buy varying quantities from suppliers of all sizes and global penetration levels.
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