Green ammonia market to grow by US$3.21 billion from 2024 - 2028
Published by Emilie Grant,
Editorial Assistant
World Fertilizer,
The global green ammonia market size is estimated to grow by USD 3.21 billion from 2024 - 2028, according to Technavio. The market is estimated to grow at a CAGR of 113.07% during the forecast period. Introduction of green ammonia is driving market growth, with a trend towards increasing investments boosting market growth. However, high cost of green hydrogen poses a challenge.
Market driver
The green ammonia market is experiencing significant growth as businesses and governments prioritise carbon neutrality and ecological footprint reduction. Green ammonia, a hydrogen carrier and energy storage solution, is an emission-free alternative to traditional fuels like natural gas in various industries. Its use as a transportation fuel, maritime fuel, and industrial feedstock is on the rise, contributing to decarbonisation efforts. Electrolyser technology, specifically alkaline water electrolysis (AWE), is a key driver in the production of green ammonia. This clean energy source is also used in power generation, agriculture, and as eco-friendly fertilizers, reducing greenhouse gas (GHG) emissions and environmental impact. Green ammonia projects are gaining traction as renewable energy sources become more accessible. This versatile commodity chemical is being used in fertilizer production, contributing to sustainable agriculture, amoungst other industries. Fuel cells, gas turbines, and internal combustion engines can utilise green ammonia as a fuel, providing a viable alternative to traditional fuels in power generation and industrial processes. Overall, the green ammonia market is a significant step towards environmental sustainability and the future of clean energy.
The global green ammonia market is witnessing significant growth due to increasing research and development activities. Notably, the European Union's (EU) Energy Technology Development and Demonstration Program (EUDP) is financing a major green ammonia project led by Skovgaard Invest, Vestas, and Haldor Topsoe. This project involves constructing a 10 MW green ammonia plant, directly linked to local wind and solar power generation, with an investment of US$11.9 billion. Furthermore, in August 2022, Carlyle and GIC, two global investment firms, announced a strategic investment in Eneus, a green ammonia project development company, to support the development of a 14GW+ green ammonia pipeline. In addition, renewable energy firm ACME Group plans to invest US$6 billion in green ammonia production. These developments underscore the growing industry momentum towards sustainable ammonia production.
Market challenges
Challenges exist in decarbonising ammonia production through renewable energy sources, such as wind and solar, due to emissions from electrolyser technology like AWE. Green ammonia's production from renewable energy sources can help reduce GHG, contributing to environmental sustainability in power generation, agriculture, and manufacturing facilities. With increasing emissions regulations, green ammonia projects can help industries transition to clean energy and low carbon emissions, making it a valuable commodity chemical for various industries. However, challenges remain in addressing environmental hazards and ensuring the safety and efficiency of green ammonia production and transportation.
Read the article online at: https://www.worldfertilizer.com/project-news/27112024/green-ammonia-market-to-grow-by-us321-billion-from-2024--2028/
You might also like
Clariant catalyst technology expected to cut 275 000 tpy CO2e at Sichuan
The catalyst is performing successfully at Sichuan Lutianhua's nitric acid plant and is projected to reduce annual emissions by 275 000 of CO2e.