The global megatrend of becoming a carbon-free society is steadily changing the industry's dynamics. Every single industry is looking for ways to reduce their carbon emission and in the long run, become carbon neutral. This megatrend thus has created a long list of new avenues for the world and those who will understand their potential at early stages would reap the benefits in the foreseeable future.
Green ammonia is among the key avenues which is gaining market traction and this can be proved by the fact that the global capacity of green ammonia production as of 2020 was only 15 thousand tons with only one operational plant in Peru. This niche market is likely to have about 26 million tons of capacity by 2030.
Figure: Global Ammonia Supply and Demand, 2020–2030, Thousand Tons
Role of green ammonia in the overall ammonia market
The overall ammonia market is comprised of conventional grey ammonia and new low-carbon ammonia which includes green and blue ammonia. It is expected that over the next decade, the global ammonia market would observe capacity augmentation however this will majorly come on account of upcoming green and blue ammonia projects.
Currently, the share of green ammonia in the overall ammonia market is negligible however, it is expected that by 2030, green ammonia will account for about 10% of the ammonia market.
Insightutive Research has recently published a report on the green ammonia market under its syndicated service. The report covers information related to green ammonia consumption and production, future outlook, supply-demand gap analysis, and key producers and buyers, among others. Connect with us to know more about it or get a free sample report.
Unconventional countries taking the market leap
Conventionally, the countries which are producing ammonia are also the largest consumer of it; however, in the case of green ammonia, countries that have abundant renewable energy production resources will outpace the green ammonia production of their counterparts. This can be proved by the fact that Australia has the largest number of announced green ammonia projects that will increase the country’s ammonia production capacity by 20-25 million tons by the next decade and by 2050, the country is expected to add another 30 million tons of green ammonia production capacity.
Besides Australia, Middle Eastern and Latin American countries are among the front runner. To fully capitalize the green ammonia production, these region’s countries are focusing more on green ammonia export to countries where more stringent emission norms are going to be implemented related to carbon emission like European countries or to countries like Japan, which has set the target to run green ammonia co-firing coal power plants.
Key players – Who understand the market at an early stage
The companies’ landscape of green ammonia projects is well diverse and includes investment companies, oil & gas giants, fertilizer & chemical manufacturers, renewable energy companies, and many more. Currently, there are a large number of players engaged in the pilot or commercial stage of green ammonia manufacturing, with most of the projects in Australia.
Based on upcoming projects, CWP has the largest portfolio of more than 30 million tons of green ammonia production capacity. Its Western Green Hub Project in Australia will have 3.5 million tons per year of green hydrogen and 21 million tons per year of green ammonia production capacity when completed. Other key players are Green Energy Oman, BP, and Uniper.