The global green ammonia market will generate revenue of $6,559.1 million in 2030, and the market size will advance at a CAGR of 94.6% between 2021 and 2030. This is attributed to the growing awareness on reducing carbon emissions and the strengthening focus on investing in green hydrogen projects, in order to achieve the zero-emission target by 2050.
APAC To Experience Fastest Growth
The APAC region is expected to experience the fastest growth, with a CAGR of 102.8%, during the forecast period. This can be ascribed to the strict controls on carbon emissions and concrete zero-carbon-energy targets, which is predicted to propel the demand for green ammonia. Additionally, there is growing awareness on low-carbon energy production and achieving sustainable energy storage.
Moreover, during the projection period, the cost of electrolysis-based hydrogen production will continue to decline, which will increase the production of eco-friendly NH3. Moreover, it is projected that the market growth in the near future would be owing to the investment by the leading players in various green ammonia plants.
For instance, in June 2021, the Danish Energy Technology Development and Demonstration Program invested $81 million for a green ammonia project managed by the partnership of Skovgaard Invest, Vestas, and Haldor Topsoe. The plant will be operational by 2023 with a capacity of more than 5,000 tons of ammonia annually.
Rising Concerns over Fossil Fuel Depletion Are Propelling Market Growth
Green ammonia is produced using renewable sources, which is why it is environment-friendly and non-toxic. Essentially, the zero emission of the harmful particulate matter and sulfur dioxide during the production process, unlike the ones utilizing fossil fuels, drives the green ammonia market. The production of this chemical uses wind and solar energy, which are abundant in nature, unlike fossil fuels. Therefore, with the rising concerns regarding the rapid depletion of fossil fuels and the carbon emissions from their burning, the adoption of green ammonia is expected to increase in the near future.
Partnerships Are Most-Effective Strategic Measures for Market Players
Key players in the green ammonia market have been involved in partnerships to remain competitive. For instance:
- In May 2021, Yara International ASA and JERA Co. Inc. signed a memorandum of understanding to collaborate for green ammonia production, delivery, and supply chain development, to ensure zero-emission thermal power generation in Japan.
- In May 2021, IHI Corporation, Woodside Energy Ltd., and Marubeni Corporation signed a head of agreement in order to check the feasibility of producing and exporting ammonia manufacturing using hydropower in Tasmania.
Some of the major players in the green ammonia market are Yara International ASA, CF Industries Holdings Inc., Hy2gen AG, Eneus Energy Limited, ACME Group, Origin Energy Limited, Siemens Energy, and Hive Energy Limited.