Green Ammonia Market

Green Ammonia MarketGreen Ammonia Market is anticipated to expand from $1.5 billion in 2025 to $77.0 billion by 2035, growing at a CAGR of approximately 43.5%. As of 2024, global ammonia production capacity is roughly 268.2 million metric tons of ammonia per year - with China producing nearly one-third of total output. In the U.S., clean hydrogen—and therefore green ammonia—is bolstered by the production tax credit under Section 45V of the Inflation Reduction Act for clean hydrogen ($3 per kilogram). Although originally expected to sunset, this tax has now been extended until December 31, 2027 (with project construction continuing to qualify by that date). Without this extension, regions like the Gulf Coast—where hydrogen and ammonia hubs are being developed—risk losing critical investment, jobs, and decarbonization activities.

The global capacity for green ammonia production continues to grow rapidly. As of June 2024, there were 124 renewable ammonia projects (i.e., 18.6 million tonnes per annum) in the public domain globally that can decarbonize almost a quarter of the global seaborne ammonia trade. The capacity from just Saudi Arabia’s NEOM project alone is projected to produce 1.2 million tpa by 2026. Australia’s Asian Renewable Energy Hub is projected to produce 1.75 million tpa capacity. Finally, India recently announced an M and MOU at the World Hydrogen Summit 2025 for approximately one million tonnes per year of green ammonia for export, based on 180 ktpa of green hydrogen by 2029. With emerging demand from fertilizer, energy storage, and marine fuels, these projects represent a significant transition to a large-scale green ammonia consumption and trade market.

Segment Overview

Based on technology segment, the market is bifurcated into proton exchange membrane electrolysis, alkaline water electrolysis, and solid oxide electrolysis. The alkaline water segment dominated the market with around 58% of the market share in 2024. The cost effectiveness is one of the major driving factors of alkaline water electrolyzers that is leading the growth. Alkaline water electrolysis (AWE) continues to be a widespread choice for green ammonia production due to its cost-effectiveness and scalability, especially in large-scale industrial applications. On the other hand, the solid oxide is expected to be the fastest-growing segment during the forecast period. This is due to its exceptionally high efficiency in hydrogen production. By operating at high temperatures (700–1,000°C), SOE systems reduce electricity consumption by utilizing waste heat from industrial processes, making it an energy-efficient solution for green ammonia production.

Based on installation type segment, the market is bifurcated into onshore and offshore. The onshore segment dominated the market with over 90% of the revenue share in 2024. This is driven by the availability of abundant renewable energy sources such as solar and wind. Onshore installations allow direct integration with renewable energy infrastructure, reducing transmission losses and making green ammonia production more cost-effective. The offshore is expected to witness the highest CAGR during the forecast period. The rise of floating ammonia production platforms is changing offshore green ammonia production. These floating units house electrolyzers, nitrogen extraction systems, and ammonia synthesis units, enabling ammonia production directly at sea. This reduces land constraints and facilitates production in areas with abundant offshore wind or tidal energy resources.

Geographical Overview

The global green ammonia market is growing rapidly, with developing characteristics at various regional levels. North America, in particular the U.S., is relying on the 2023 National Clean Hydrogen Strategy and Roadmap requiring clean hydrogen produced in the U.S. to meet 2030 goals of 10 million tons and 2040 goals of 20 million tons, building on green ammonia development through hubs and tax incentives. Europe, led by Germany, is importing green ammonia, whereby Fertiglobe secured a 2024 - 33 tender for over 259,000 metric tons from Egypt through the H2Global program, which Germany will use for green hydrogen. In the Middle East & Africa region, Saudi Arabia's NEOM green hydrogen-based ammonia facility is expected to be online in 2025 with a potential capacity to produce as much as 1.2 million tons per year. Moreover, Morocco's OCP-Fortescue green ammonia and fertilizer project intends to produce different products with an expected first target 1 Mt/year by 2027 and a second target of 3 Mt/year by 2032. In Latin America, countries are progressing through policies surrounding renewable hydrogen, including Chile aiming for 5 GW of new electrolysis capacity by 2025 with national hydrogen roadmaps announced by Brazil and Colombia.

Key Trends and Drivers

Decarbonization Acceleration -

As global green ammonia production increases rapidly due to acute decarbonization targets, government and utility investment in clean ammonia projects demonstrates a strong commitment to reducing CO₂ emissions in key industries like agriculture, shipping, and power. Various partnerships and developments in new technologies are helping clean ammonia projects across both advanced economies and emerging markets reach deployment and commercial readiness quicker than ever before.

Renewable Energy Infrastructure -

Increasing investment in renewables, especially solar and wind, is providing a ready demand source for clean green hydrogen and, consequently ammonia, with significant growth set to occur in ammonia production globally. Improved infrastructure, developments in electrolysis, and the opportunity to integrate ammonia into existing transportation and chemical supply chains demonstrate how strong growth and production costs worldwide should be decreasing.

Research Scope

• Estimates and forecasts the overall market size across type, product, and region.
• Provides detailed information and key takeaways on qualitative and quantitative trends, dynamics, business framework, competitive landscape, and company profiling.
• Identifies factors influencing market growth and challenges, opportunities, drivers, and restraints.
• Identifies factors that could limit company participation in international markets to help calibrate market share expectations and growth rates.
• Evaluates key development strategies like acquisitions, product launches, mergers, collaborations, business expansions, agreements, partnerships, and R&D activities.
• Analyzes smaller market segments strategically, focusing on their potential, growth patterns, and impact on the overall market.
• Outlines the competitive landscape, assessing business and corporate strategies to monitor and dissect competitive advancements.\n\nOur research scope provides comprehensive market data, insights, and analysis across a variety of critical areas. We cover Local Market Analysis, assessing consumer demographics, purchasing behaviors, and market size within specific regions to identify growth opportunities. Our Local Competition Review offers a detailed evaluation of competitors, including their strengths, weaknesses, and market positioning. We also conduct Local Regulatory Reviews to ensure businesses comply with relevant laws and regulations. Industry Analysis provides an in-depth look at market dynamics, key players, and trends. Additionally, we offer Cross-Segmental Analysis to identify synergies between different market segments, as well as Production-Consumption and Demand-Supply Analysis to optimize supply chain efficiency. Our Import-Export Analysis helps businesses navigate global trade environments by evaluating trade flows and policies. These insights empower clients to make informed strategic decisions, mitigate risks, and capitalize on market opportunities.

Please Note: This report will be delivered by publisher within 2-3 business days of order confirmation. Show more