Blue Ammonia Market - 2025-2032

Blue Ammonia Market Blue Ammonia Market reached US$ 216.74 million in 2024 and is expected to reach US$ 6,046.90 million by 2032, growing with a CAGR of 51.60% during the forecast period 2025-2032.

The global blue ammonia market is gaining traction as a pivotal component in the transition to a low-carbon economy. Blue ammonia, produced using natural gas with carbon capture and storage (CCS) technology to minimize carbon emissions, serves as a critical energy carrier and industrial feedstock. Its role is particularly prominent in decarbonizing hard-to-abate sectors such as heavy industry, agriculture, and power generation, as well as in global hydrogen transportation and storage.

The market's growth is fueled by increasing commitments to reduce greenhouse gas emissions, with countries and industries adopting blue ammonia as a bridge solution to achieve sustainability goals. For instance, Japan and South Korea, two energy-import-dependent nations, are actively developing infrastructure to import blue ammonia to decarbonize their energy systems. Japan, in partnership with Saudi Aramco and SABIC, imported 40 tons of blue ammonia for co-firing in power plants, showcasing its early adoption in energy transitions.

Blue Ammonia Market Trends

The demand for blue ammonia is driven by increasing regulatory pressures, such as the EU’s Carbon Border Adjustment Mechanism (CBAM), which penalizes high-emission products. This creates a market incentive for low-carbon alternatives like blue ammonia, making it a more attractive option for industries seeking to comply with carbon pricing and emission reduction goals.

Technological advancements in carbon capture, utilization, and storage (CCUS) are also critical in making blue ammonia production more economically viable. These innovations enable large-scale production and retrofitting of existing facilities. For instance, in November 2024, CF Industries' US$ 4 million investment in a new blue ammonia plant reflects the company’s strategic move to capitalize on these trends and meet growing demand in the low-carbon market.

Blue Ammonia Market Dynamics

Rising Demand for Decarbonization in Energy and Industry

Blue ammonia is an effective hydrogen carrier, enabling the transport and storage of hydrogen over long distances. The increasing investments in green hydrogen projects by countries like China, Australia, Japan and South Korea are creating opportunities for blue ammonia as a bridge fuel.

For instance, Japan’s energy major ENEOS has decided to set up a green hydrogen production plant with a US$ 200 million investment in Queensland, Australia. Queensland Government’s Ministry for Finance, Trade, Employment and Training revealed the planned investment by ENEOS on December 3, 2024.

As part of the investment, the Japanese company proposes to build and run a hydrogen demonstration plant at Bulwer Island, on approximately 6,000 square meters of land at the former BP refinery site close to the Port of Brisbane. Moreover, Governments worldwide are providing policy frameworks and subsidies for decarbonization technologies. For instance, the European Union’s “Fit for 55” package incentivizes the production and adoption of low-carbon solutions like blue ammonia. Thus, above factors helps to boost the market growth.

High Production Costs

High production costs are a significant restraint on the blue ammonia market, primarily due to the complex and resource-intensive process of integrating carbon capture and storage (CCS) technologies with conventional ammonia production. Producing blue ammonia involves capturing CO2 emissions, compressing the captured gas, transporting it to storage sites, and safely sequestering it underground—all of which add substantial capital expenditure (CAPEX) and operational expenditure (OPEX) to the production process.

For instance, to decarbonize fossil fuel-based ammonia production via SMR or ATR, capturing emissions through CCUS is crucial. Capture technologies like amine-based scrubbing are already established to capture rich CO2 process streams, but technologies for capturing dilute streams need to be further advanced.

Blue Ammonia Market Segment Analysis                                       

The global blue ammonia market is segmented based on technology, application, end-user, distribution channel and region.

Blue Ammonia Market, By Technology

Steam Methane Reforming (SMR): Driving Efficiency and Growth in the Blue Ammonia Market

The steam methane reforming segment is expected to have a dominant market share in the global blue ammonia market, during the forecast period. The main industrial method for producing Synthesis Gas (syngas), which is used to produce methanol, hydrogen and green ammonia, is steam reforming. Despite its many benefits, the steam methane reforming process is linked to significant carbon dioxide emissions.

The potential of SMR in the blue ammonia market has increased due to recent developments in CCS technologies. SMR can meet the low-carbon criteria of blue ammonia production thanks to high-efficiency carbon capture rates (up to 90–95%), which are in line with worldwide decarbonization goals.

This technique involves the direct interaction of steam (H2O) and methane (CH4) with a catalyst at high pressures (20-40 bar) and temperatures (700-1100 °C). This causes the generation of synthesis gas (syngas), which is then combined with nitrogen (N2) to make ammonia (NH3). SMR is a highly efficient process that maximizes the heat and chemical energy of the reactants. Furthermore, it provides a cost-effective solution, making it the most economically viable way for producing blue ammonia, which is driving revenue growth in this segment.

Blue Ammonia Market Geographical Share

Due To Developed End-User Sectors North America Control the Market Share

North America is expected to account for the majority of revenue in the global blue ammonia market throughout the projected period. The market is distinguished by a strong focus on low-carbon alternatives and ongoing technological improvements. Initiatives and investments in green technologies combine with the region's dedication to sustainability, creating an atmosphere conducive to the use of blue ammonia. The dominance is partly due to the aggressive efforts of leading market participants in this region, who are actively developing various infrastructures for blue ammonia production.

For example, in 2024, KBR stated that Tokyo-based INPEX Corporation and Oklahoma City-based LSB Industries had selected its blue ammonia technology for a large, commercial-scale clean ammonia manufacturing and export project on the US Gulf Coast. According to the contract terms, KBR will provide technological licensing and patented engineering plans for a 1.1 million tons annually ammonia plant designed to absorb carbon while maximizing yields.

Sustainability Analysis

The sustainability potential of blue ammonia is increasingly gaining attention as a transitional solution in the global move toward low-carbon energy systems. Blue ammonia is produced using traditional processes such as Steam Methane Reforming (SMR), combined with Carbon Capture and Storage (CCS) technologies to significantly reduce greenhouse gas emissions.

This positions it as a more environmentally viable alternative to grey ammonia, which lacks carbon abatement. A key sustainability advantage lies in its ability to capture up to 90–95% of CO₂ emissions during production, aligning with global decarbonization targets set under the Paris Agreement and various national net-zero commitments. For instance, the Air Products and ACWA Power project in Saudi Arabia integrates CCS with SMR to produce blue ammonia on a large scale, with plans to export it to global markets like Japan and South Korea, which have strong hydrogen import targets.

Blue Ammonia Market Major Players

The major global players in the market include ADNOC, Yara, Ma’aden, OCI, CF Industries Holdings, Inc, QAFCO, Uniper SE, Saudi Arabian Oil Co., Shell Plc, LSB Industries and among others.

Blue Ammonia Market Company Share Analysis

Key Developments

In 2024, BASF announced its collaboration with INPEX Corporation to use its HiPACT high-pressure regenerative CO2 capture technology in Japan’s first demonstration of blue hydrogen and ammonia production from domestically produced natural gas. The project, Kashiwazaki Clean Hydrogen/Ammonia, is funded by NEDO and integrates Carbon Capture, Utilization, and Storage (CCUS).

In 2024, SABIC Agri-Nutrients Company has received approval from the Ministry of Energy to allocate feedstock for its Blue (low-carbon) Ammonia project in Jubail Industrial City, Saudi Arabia. The new plant will produce 1.2 MMTA of Blue Ammonia and 1.1 MMTA of Urea and Agri-Nutrients. Engineering studies will be conducted to select the most efficient technologies for energy and feedstock utilization.

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