Green Ammonia Market to Grow at a CAGR of 20% by 2035 | ChemAnalyst
Posted by ChemAnalyst on June 20th, 2022
According to ChemAnalyst report, “Green Ammonia Market Analysis: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2035”, The Green Ammonia Market is expected to witness considerable growth by reaching 18 million tonnes in 2035 and grow at an impressive CAGR of 20% during the forecast period until 2035. The increasing utilization of Green Ammonia by the agriculture industry as they are highly used in fertilizers is expected to flourish the Green Ammonia market across the globe over the next few years. Ambitious net zero-carbon energy goals and strict emissions regulations are likely to drive the demand for Green Ammonia to reduce the CO2 emissions, further augmenting its market in the upcoming years.
Ammonia is the world’s second-most-widely produced commodity chemical. Industrially, it is mostly used as a fertilizer in agriculture, a sector that is under extreme examination due to its environmental impact. The process of Green Ammonia production utilizes Ammonia that is 100 percent renewable and carbon-free. Several chemical producers are considering Green Ammonia, a route to Ammonia in which Hydrogen derived from the electrolysis of water replaces hydrocarbon-based Hydrogen, making the production of Ammonia virtually carbon dioxide free. Green Ammonia could come to the rescue by easily capturing, storing, and transporting Hydrogen for use in emission-free turbines and fuel cells. Plenty of efforts are under development to combust Ammonia directly in power plants and ship engines. The most widely used process to make Ammonia on a commercial scale is the Haber-Bosch process, in which Ammonia can be extracted again through a thermal decomposition and separation process. Green Ammonia can be widely used in an array of end-use applications other than Fertilizers in agriculture.
Some of the government-supported projects that support the Green Ammonia production are: In Australia, the Norwegian fertilizer producer Yara plans to install electrolyzers to produce 3,500 tonnes per year of Green Ammonia at its plant in Pilbara. In the US, CF Industries is launching its first big Green Ammonia project, in which the company intends to spend USD100 million to convert 20,000 t per year of conventional Ammonia at its flagship plant in Donaldsonville, Louisiana by installing electrolyzers.
Green Ammonia Market is segmented on the basis of technology, end-use, sales channel, and region. On the basis of technology, the market is segmented into Alkaline Electrolysis (AE), Solid Oxide Electrolysis (SOE), and Proton Exchange Membrane (PEM). SOE technology accounts for the largest share in the Green Ammonia market due to the increased demand for Hydrogen systems to reduce carbon emissions. The Solid Oxide Electrolysis method consumes electricity generated from renewable sources to produce Green Hydrogen, which can be further synthesized in the Ammonia synthesis plants to make Green Ammonia.
Based on end-uses, the Green Ammonia market is segregated into fertilizer, industrial power generation, transportation, and others. The industrial power generation sector is anticipated to dominate the market in the forecast period. Rapidly growing demand for Green Ammonia as a sustainable fuel will provide a positive outlook to the Green Ammonia market over the next few years. The increasing demand for Green Ammonia as a maritime fuel potentially holds vast opportunities for the future.
High investments and low awareness among the chemical producers can somehow hinder the market growth of Green Ammonia in the upcoming years. The cost of Green Ammonia plants is higher than the natural gas Ammonia plants, which makes it quite challenging to resist in the market.
In 2020, the unprecedented fall of COVID-19 caused the Green Ammonia market to observe a severe decline around the world. The imposition of countrywide lockdowns and strict restrictions by the government authorities to contain the spread of the novel coronavirus negatively impacted end-use industries. The global supply chain was drastically affected due to the halt of trade activities. However, the demand outlook remained bullish during the covid times due to the firm demand from the agriculture industry. As the market is gradually reopening, the demand for Green Ammonia is likely to boost in the upcoming years owing to the increasing demand from the shipping industry.
Among different regions, Europe is forecasted to dominate the Green Ammonia market across the world in the upcoming years, followed by the Middle East, Africa, and North America due to the investments and projects in the regions. Initiatives to produce Green Hydrogen are likely to drive the demand for Green Ammonia across the MEA and Europe, which will further boost its market in the future.
Green Ammonia Market Analysis: Plant Capacity, Production, Operating Efficiency, Demand & Supply, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2035”, some of the major players operating in Green Ammonia market include Siemens, BASF, thyssenkrupp, Nel Hydrogen, MAN Energy Solutions, Electrochaea, Green Hydrogen Systems, Hydrogenics, ITM Power, Uniper, Yara International, Queensland Nitrate Pty Ltd., Enapter, Hiringa Energy, ENGIE, Haldor Topso, and others.
“Continuously increasing demand for fertilizers from the blooming agriculture industry is expected to boost the Green Ammonia market in the forecast period until 2035. Due to the outbreak of COVID-19, transportation activities were halted, due to which the global supply chain of Green Ammonia got disturbed amidst the strong demand across the globe. As a number of projects are lined up along with high investments in regions like the Middle East and North America, it is likely to drive the market in the upcoming ten years. “said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm promoting ChemAnalyst worldwide.
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