AMMONIA MARKET ANALYSIS

Ammonia MarketSize and Trends

Global ammonia market size is expected to reach US$ 132.91 Bn by 2031, from US$ 82.76 Bn in 2023, exhibiting a compound annual growth rate (CAGR) of 6.1% during the forecast period (2024-2031).

• Shift toward green ammonia: The shift toward green ammonia production is having a significant influence on the market. With the rising focus on decarbonization and the development of carbon-neutral technologies, green ammonia is emerging as a viable clean fuel alternative. Green ammonia is produced through the electrolysis of water and nitrogen from air with renewable electricity like solar or wind. This makes it a carbon-free fuel that can help reduce emissions from hard-to-abate sectors like shipping and heavy industries. Major market players across the ammonia supply chain are making strategic investments and forming partnerships to ramp up green ammonia capacity. For instance, fertilizer giant, Yara International, entered an agreement with Horisont Energi, clean energy company, in 2021, to jointly develop the world's first large-scale green ammonia project in Norway, which aims to produce 100,000 tons of carbon-free ammonia per year by 2028. Similarly, ENN Group, provides research and development for clean energy sources and Haldor Topsoe, company specializes in technologies aimed at reducing carbon emissions announced a cooperation deal in 2022 to establish a green ammonia production demonstration plant in China by using renewable power from solar and wind. The plant is projected to produce 5,000 tons of green ammonia annually.
• Technology advancements in production process: Advancements in production technologies are significantly impacting the market growth. Traditionally, ammonia has been manufactured through the energy-intensive Haber-Bosch process requiring high pressure and temperature. However, new technologies are developing that promise to reduce the carbon footprint of ammonia production. For example, several companies are exploring electrochemical and electro catalytic processes that use renewable electricity to split nitrogen and hydrogen directly from air and water. These methods use cheaper non-metallic catalysts and operate at ambient temperature and pressure. They could help ammonia manufacturers lower their electricity costs and transition to more sustainable power sources. According to the United Nations Economic Commission for Europe, these novel techniques have already achieved laboratory scale proof-of-concept and are being optimized for industrial deployment by 2030. The potential energy efficiencies from such emerging technologies are encouraging ammonia producers to invest in production capacity upgrades. Leading fertilizer firm, CF Industries, plans to incorporate technology developed by a fellow U.S.-based startup, GenH2 into its existing Haber-Bosch facilities by 2025.