5 Strategic Developments Propelling the Green Ammonia Market to a $18.80 Billion Valuation by 2031

The global green ammonia market is set to expand due to increasingly stringent carbon emission regulations and the pursuit of zero-carbon energy goals. The growing recognition of energy security from low-carbon intermittent sources, coupled with a decline in hydrogen production costs through electrolysis, is expected to fuel demand from 2024 to 2031. ?

The global green ammonia market is projected to reach $18.80 billion by 2031 from $3.5 million in 2022,?at a CAGR of 23.2%. While green ammonia has a modest impact on the fertilizer and transportation fuel industry, its influence is expected to escalate with increased production. ?

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Key Insights from Green Ammonia Market Report?

The agriculture industry is projected to dominate the application segment of the global green ammonia market. Solid oxide electrolysis is expected to lead production technology. Europe and North America are poised to gain traction in green ammonia production globally, driven by R&D advancements and supportive government regulations in these regions.?

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ACME Group and IHI Corporation Unite for 1.2 MT?Green Ammonia Venture?

On 23rd January 2024, ACME Group , a prominent Indian renewable energy company, and IHI Corporation , a Japanese integrated heavy industry group, formalized an offtake term sheet. This agreement outlines the supply of green ammonia from Odisha, India, to Japan. As part of the 'Make in Odisha' initiative, the ACME Group and IHI Corporation have collaborated to establish a pioneering green ammonia plant in Gopalpur, Odisha, with an investment of Rs 60,000 crore. This green ammonia venture will?require a total investment of $5 billion, positioning it as potentially India's first green ammonia facility. The project, designed with a phased approach, aims for a 1.2 million metric tonnes per annum (MMTPA) capacity, with initial production anticipated by 2027. This undertaking is projected to significantly reduce global greenhouse gas (GHG) emissions throughout its lifecycle, with an estimated impact of lowering approximately 54 million tons of carbon dioxide equivalent.?

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New Study from University of Oxford Offers Key Insights on Green Ammonia Production and Supply?

On 9th January 2024, Researchers from the 英国牛津大学 proposed a regionalized approach to green ammonia production as a key solution to decarbonize 60 percent of global shipping by 2050. Published in Environmental Research: Infrastructure and Sustainability, the study outlines two scenarios for cost-efficient global green ammonia production, emphasizing the need for substantial investment—$1.9 trillion to $2.2 trillion globally. The model calls for strategic production hubs, identifying Australia as a significant supplier for Asian markets and predicting production clusters in Chile, California, North-West Africa, and the southern Arabian Peninsula. A regionalized industry could increase production three to four times compared to current fossil fuel-based ammonia levels.?

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Itochu-Hive Energy Collaboration Powers Green Ammonia Project in South Africa?

On 11th December 2023, ITOCHU Corporation , a Japanese trading company, entered a Memorandum of Cooperation (MoC) with HIVE Hydrogen South Africa for a green ammonia production project in Coega, South Africa. The collaboration, scheduled for commissioning in 2028, aims to utilize renewable energy sources and existing infrastructure for competitive green ammonia production. The plant, backed by Hive Energy and Built Africa, plans to supply Japan, Korea, and Europe with over 900,000 tons annually. The MoC aligns with Japan and South Africa's 2023 agreement on hydrogen and ammonia cooperation. ITOCHU's efforts include a green ammonia partnership with Sasol and initiatives for low-carbon ammonia in Canada.?

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Hy2gen Propels Green Ammonia as a Maritime Fuel, Acquires Kiwi AG?

On 12th December 2023, Hy2gen acquired kiwi AG, securing the world's largest power-to-eMethane plant in Werlte, Germany. This move marks Hy2gen's entry into renewable hydrogen and green ammonia production, including renewable natural gas (RNG) and liquefied natural gas (LNG). The deal provides access to kiwi AG's 300MW project pipeline for electrolysis and methanation. With Plug Power's support, Hy2gen plans to maintain existing processes and launch project NAUTILUS in Friesoythe by Q4 2027. On November 17, 2023, Hy2gen and Amogy signed an MoU to advance green ammonia as a maritime fuel. Amogy's powerpack technology complements Hy2gen's focus on green ammonia plant development, aiming for commercialization in the global maritime industry.?

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Gentari and AM Green Partner for 5 MTPA Green Ammonia Production by 2030?

On 29th October 2023, Malaysian firm Gentari , PETRONAS ' clean energy division, and AM Green Group , founded by Greenko Group , partnered with GIC to produce 5 million tons per annum (MTPA) of green ammonia by 2030 in India. This equates to around 1 MTPA of green hydrogen. The venture aims to accelerate India's net-zero targets, exporting green ammonia to Organization for Economic Cooperation and Development (OECD) markets like Germany, Japan, South Korea, and Singapore from late 2025. The 5 MTPA target represents a significant portion of India's National Green Hydrogen Mission and 10% of Europe's green hydrogen import target by 2030. AM Green will utilize round-the-clock renewable energy and manufacture electrolyzers to achieve this scale.?

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The Future of Green Ammonia Market?

Green ammonia presents a significant business opportunity as a transitional fuel in the transportation sector, particularly in maritime shipping. The International Maritime Organization (IMO) regulations and the industry's commitment to reducing carbon emissions create a favorable environment for green ammonia, addressing concerns related to traditional fossil fuels. The maritime industry's target of a 70% reduction in carbon emissions by 2050 further propels the demand for sustainable and cleaner marine fuels, positioning green ammonia as a viable solution. Moreover, the global shift towards cleaner energy sources and increased adoption of energy-efficient technologies, such as Haldor Topsoe's renewable energy-based production, contribute to the growth prospects of the green ammonia market.?

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