According to a recent green ammonia market report by Future Market Insights (FMI), the green ammonia market is anticipated to advance at a phenomenal rate of 90% over the forecast period 2022-2032. At the regional level, the green ammonia market share has a small number of manufacturers.

The study on green ammonia market finds that the solar and wind energy have advanced at a higher pace than other renewable energy, thanks to rising investment and reduced power generation costs. The switch to renewables, productivity, and automation, and per the Global Renewables Outlook 2020, will drive socioeconomic development. Consequently, rising green ammonia production and underlying storage requirements will push the green ammonia market forward.

The capital-intensive nature of green ammonia plants is a major hindrance to the market's advancement. General ammonia manufacturers will not be able to move from traditional ammonia production to green ammonia production unless the cost of renewable energy and electrolyzers drops further, hampering green ammonia market growth.

The marine industry is undergoing a major transformation. The maritime industry is under pressure to reduce emissions by switching to cleaner energy sources, which is likely to be a pathway for green ammonia producers to capture more revenue.

The green ammonia market is segmented based on technology into alkaline water electrolysis, proton exchange membrane, and solid oxide electrolysis. Amongst these green ammonia technology segments, the solid oxide electrolysis segment is anticipated to hold the largest market revenue of $496.38 MM by the end of 2028, up from $7.89 MM in 2019.

The main problem with the adoption of green ammonia is a lack of awareness among chemical manufacturers. For the green ammonia production process, the largest chemical companies in China, Japan and Russia continue to use natural gas steam methanation technology. With increased knowledge of electrolysis technology and lower costs of renewable energy generation, the market for green ammonia is likely to rise throughout the forecast period.

“The secret to meeting the dual concerns of growth and environment-friendliness of the twenty-first century is green ammonia. By switching to renewable electricity to make ammonia, CO₂ emission of about 40 MMt of CO₂ can be curbed in Europe alone and over 360 MMt worldwide. As a result, the green ammonia market prospect is high and lucrative,” said FMI analyst.

Key takeaways from the market study

• By the end of 2028, the European green ammonia market is expected to have the largest market share and generate revenue of $558.03 MM, up from $7.49 MM in 2019, thanks to an estimated CAGR of 65.37% over the forecast period.
• The Netherlands is likely to have the largest market revenue of $227.12 MM in 2028, while Germany's market is expected to grow at the fastest rate of 86.35% over the forecast period.
• In 2028, Asia Pacific is expected to hold the second-largest market share, with revenue potential of $190.69 MM.
• As per the green ammonia market trends during the forecast period, the alkaline water electrolysis segment in the Netherlands is expected to grow at the highest rate of 57.2%.
• In Europe, the solid oxide electrolysis segment is expected to generate the most revenue in 2028, with $323.67 MM, up from $4.51 MM in 2019.

Competitive landscape

Several globally established green ammonia companies, including Siemens (Germany), NEL Hydrogen (Norway), ThyssenKrupp (Germany), ITM Power (UK), and McPhy Energy (France), lead the green ammonia market.

• MAN Energy Solutions, a mechanical engineering firm, announced plans to build an ammonia-fueled two-stroke engine for the marine industry in late 2019, and is in talks with Siemens for green ammonia supply.
• Equinor ASA, Norway's state-owned oil firm, inked a deal with Eidesvik Offshore in January 2020 to modify its Viking Energy supply vessel so that it may travel long distances using carbon-free renewable ammonia.

MISC Berhad of Malaysia, Samsung Heavy Industries of South Korea, Lloyd's Register of the United Kingdom, and MAN Energy Solutions of Germany announced a project to build an ammonia-fueled tanker in the next three to four years in January 2020.