GREEN AMMONIA MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

One of the key challenges currently faced by the global green ammonia market is the high production costs associated with green ammonia as compared to conventionally produced ammonia. Green ammonia, which is produced through the electrolysis of water using renewable energy sources like solar and wind, involves capital-intensive production facilities and equipment. The renewable energy technologies required to power the electrolysis process also add to the costs. Currently, the production costs of green ammonia are estimated to be around 2-3 times higher than ammonia produced from fossil fuels like natural gas. This significant price differential poses adoption challenges, especially in end-use industries where ammonia is a critical raw material or fuel source. While production yields and efficiencies are expected to improve over time, bringing costs down substantially will still require considerable technology advancements and economies of scale. Unless costs can be reduced significantly through innovation and mass production, high costs may limit the growth potential of green ammonia in the near future.

Market Opportunity - Growing investments in renewable energy technologies

The steadily growing investments and advancement in renewable energy technologies across the globe present a major opportunity for the green ammonia market. Solar and wind power capacity additions have been increasing year-on-year due to supportive government policies and declining technology costs. This has made renewable energy resources more accessible and cost-effective for both large-scale energy generation as well as decentralized off-grid production. As the costs of solar panels and wind turbines continue to reduce backed by significant Research and Development R&D investments, the renewable power required for green ammonia production is also expected to become cheaper over time. The entry of major energy companies such as ExxonMobil and other is also directing more capital into innovative clean energy technologies. This boost in renewable energy capacity bodes well for the green ammonia market by ensuring adequate supply of economic power inputs for electrolysis processes. It could significantly enhance the business case and competitive edge of green ammonia production worldwide.