Europe Green Ammonia Market, By Production Method (Alkaline Water Electrolysis, Proton Exchange Membrane, Solid Oxide Electrolysis), By End Use (Power Generation, Transportation, Fertilizers, Others), By Country and Competition, Forecast & Opportunities 2022-2032

Market Overview

The Europe Green Ammonia Market is anticipated to project robust growth in the forecast period with a CAGR of 40.19% and is expected to reach USD 3702.93 Million by 2032. The production of green ammonia involves the generation of ammonia using entirely renewable and carbon-free methods. This exceptional substance boasts a range of applications owing to its unique properties, such as the ability to be stored at extremely low temperatures, reaching as low as -33°C, or as a liquid under minimal pressures, typically around 10–15 bar. Notably, green ammonia is celebrated as a zero-carbon fuel, suitable for combustion in engines or for use in fuel cells to generate electricity. Furthermore, it serves as an environmentally friendly carrier for green hydrogen, facilitating the storage and transportation of clean hydrogen, a pivotal component in the realm of renewable energy. The significance of green ammonia goes beyond, as it addresses critical global challenges, including ensuring food security for a continually expanding global population and the production of carbon-free electricity. Additionally, it holds substantial promise as a potential climate-neutral transportation fuel in the future, offering a sustainable alternative to traditional fossil fuels. Moreover, there are ongoing plans to harness green ammonia in the development of carbon-neutral fertilizer products, which could revolutionize agricultural practices by reducing the carbon footprint associated with fertilizer production and application. The convergence of these factors collectively contributes to the anticipated growth of the Europe Green Ammonia Market in the forecast period.

Key Market Drivers

Increasing Demand of Green Ammonia in the Power Generation Sector

In the quest for cleaner and more sustainable energy sources, green ammonia has emerged as a highly promising candidate, particularly within the power generation sector. Green ammonia, produced using renewable energy sources and emitting minimal or no carbon dioxide during its production, offers a compelling solution to reduce greenhouse gas emissions and facilitate the transition toward a low-carbon energy future. Ammonia, due to its high hydrogen content, has long been identified as a potential energy carrier. However, traditional methods of ammonia production heavily rely on fossil fuels and result in significant carbon dioxide (CO2) emissions, which contradict sustainability objectives. Conversely, green ammonia production relies on renewable energy sources, primarily wind and solar power, to generate hydrogen through electrolysis. This hydrogen is then combined with nitrogen to create ammonia. The outcome is a clean, carbon-free fuel with versatile applications across various industries. One of the key drivers of the rising demand for green ammonia is its application in power generation. Green ammonia can serve as a clean fuel in thermal power plants, offering a viable alternative to coal and natural gas. When combusted in gas turbines, green ammonia generates heat and electricity with zero CO2 emissions, making it an attractive option for reducing the carbon footprint associated with power generation. The technology for ammonia combustion is well-established, simplifying the integration of green ammonia into existing power plants. The capacity to retrofit ammonia into conventional power facilities further expedites its adoption, presenting a practical solution for emissions reduction within the energy sector.

Moreover, efficient energy storage is indispensable in a sustainable energy system, allowing for the optimal utilization of intermittent renewable energy sources such as wind and solar power. Green ammonia has garnered significant attention as a dependable energy storage medium. Excess renewable energy generated during periods of low demand can be employed to produce green ammonia through electrolysis. This green ammonia can then be stored and transported to locations where energy is required, functioning as a flexible energy reservoir. During periods of heightened electricity demand, green ammonia can be converted back into electricity through ammonia-based fuel cells or gas turbines, releasing stored energy and stabilizing the grid. This adaptability in energy storage positions green ammonia as a crucial tool for ensuring a consistent and dependable energy supply, even in the face of fluctuating renewable energy generation.

Furthermore, the power generation sector is under growing pressure to curtail carbon emissions as nations commit to ambitious climate targets. Green ammonia offers an enticing solution for power plants to decarbonize their operations without necessitating costly infrastructure alterations. By incorporating green ammonia as a clean fuel, power plants can align with sustainability goals and significantly diminish their carbon footprint. The rapid expansion of renewable energy sources like wind and solar power has underscored the necessity for efficient energy storage solutions. Green ammonia, as an energy carrier, complements endeavors to integrate renewable energy by providing a means to store surplus energy during peak generation periods and release it as needed. This role in energy storage positions green ammonia as a pivotal component of a robust and resilient energy grid. Therefore, the escalating demand for green ammonia in the power generation sector is poised to drive the growth of the Europe Green Ammonia Market.

Rising Demand for Green Ammonia in the Transportation Sector  

The transportation sector stands as a focal point in global endeavors to curtail greenhouse gas emissions and address climate change. As the world intensifies its search for cleaner and more sustainable alternatives to traditional fossil fuels, green ammonia has emerged as a promising solution for the decarbonization of various modes of transportation. This sector is a substantial contributor to worldwide carbon emissions, with road vehicles, maritime vessels, and aircraft heavily reliant on fossil fuels like gasoline, diesel, and kerosene. Confronting the environmental challenges associated with conventional transportation fuels necessitates a growing shift toward cleaner and more sustainable options. Green ammonia, produced utilizing renewable energy sources and emitting minimal or no carbon dioxide (CO2) during its production, presents significant potential as a clean and sustainable transportation fuel. Its utilization can lead to substantial reductions in greenhouse gas emissions, the mitigation of air pollution, and contributions to a more sustainable future.

Furthermore, green ammonia has the capacity to supplant conventional marine fuels, resulting in reduced emissions from cargo ships, cruise liners, and other vessels. Ammonia-powered engines offer high energy density, enabling extended voyages without the need for frequent refueling. Additionally, green ammonia can serve as an alternative to kerosene in aviation. The development of ammonia-based fuel cells and gas turbines for aircraft propulsion holds promise for mitigating emissions within the aviation sector. Ammonia can function as a fuel in internal combustion engines or be converted into hydrogen for on-board fuel cell vehicles. Its application in heavy-duty trucks, buses, and off-road vehicles contributes to cleaner urban transportation. Furthermore, ammonia-powered locomotives present an eco-friendly solution for both freight and passenger rail services, thereby reducing emissions along rail networks.

Moreover, governments are actively investing in the establishment of ammonia production and distribution infrastructure to bolster the use of green ammonia in transportation. This encompasses the construction of ammonia production facilities, transportation networks, and refueling stations catering to ammonia-powered vehicles and vessels. Public and private sector investments in research and development are stimulating innovation in green ammonia technologies for transportation. These investments fund projects focused on enhancing ammonia-powered engines, fuel cells, and conversion systems, thereby rendering green ammonia more accessible and efficient. Consequently, the multitude of advantages associated with green ammonia is poised to propel the demand for the Europe Green Ammonia Market in the foreseeable future.

Expanding Demand for Green Ammonia in the Fertilizer Industry

The fertilizer industry holds a pivotal role in ensuring global food security and bolstering agricultural productivity. Fertilizers serve as indispensable agents in furnishing crops with the essential nutrients needed for robust growth, thus catering to the increasing demands of a burgeoning world population. Nevertheless, the conventional methods employed for the production of ammonia-based fertilizers have raised notable environmental concerns, notably concerning carbon emissions and the energy-intensive nature of the processes involved. Consequently, there has been a gradual escalation in the demand for green ammonia within the fertilizer industry. Fertilizers represent a linchpin of modern agriculture, instrumental in augmenting crop yields and ensuring an adequate food supply to meet the needs of the ever-expanding global populace. These vital inputs confer upon plants the critical nutrients, with a primary focus on nitrogen, phosphorus, and potassium, which are frequently found to be deficient in soil compositions. Among nitrogen-based fertilizers, those based on ammonia, in particular, have gained widespread acceptance in agriculture due to their efficacy in stimulating plant growth and enhancing crop output.

Moreover, the pressing necessity to combat climate change has spurred governments, industries, and consumers to seek sustainable alternatives to processes that emit substantial amounts of greenhouse gases. The production of green ammonia aligns seamlessly with the global mission to curtail greenhouse gas emissions and limit the progression of global warming. The shift toward renewable energy sources, encompassing wind, solar, and hydropower, has opened avenues for sustainable ammonia production. These renewable energy sources can power electrolysis procedures, resulting in the generation of green hydrogen, a pivotal component in the synthesis of green ammonia. The surging awareness and apprehension regarding the environmental consequences of food production have encouraged consumers to champion sustainable and environmentally conscious farming methods. Green ammonia affords the fertilizer industry the means to respond to these preferences, with the added advantage of being able to function as a feedstock for the production of ammonium nitrate, a commonly used nitrogen-based fertilizer. This sustainable substitute effectively diminishes the carbon footprint associated with ammonium nitrate production, while preserving its potency in stimulating crop growth. Consequently, these factors are poised to be the driving forces behind the expansion of the Europe Green Ammonia Market in the forthcoming forecast period.

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Key Market Challenges

Cost Effectiveness

Cost effectiveness stands as a central hurdle in the realm of the green ammonia market. The process of generating green ammonia, facilitated by renewable energy sources like wind or solar power, often proves to be a more financially demanding endeavor in contrast to conventional ammonia production methods reliant on fossil fuels. The initial financial outlay required for constructing the infrastructure essential for green ammonia production, encompassing elements such as electrolysis units and renewable energy installations, can dissuade potential investors from participating. To effectively surmount this challenge, it is imperative for governments, research institutions, and private enterprises to forge collaborative partnerships, pooling their collective expertise to instigate innovation and curtail production expenses. Strides in electrolysis technology, the realization of economies of scale, and the advent of integrated energy systems hold the potential to level the playing field, rendering green ammonia more financially competitive when weighed against traditional ammonia production.

Moreover, the green ammonia production process is fraught with various technical impediments that exert an influence on production expenditures. The production of green ammonia leans heavily on energy-intensive methodologies, necessitating elevated temperatures and pressures, thereby amplifying both initial capital investment and ongoing operational costs. The escalating cost of renewable energy sources and the implementation of electrolysis procedures represent substantial factors constraining the widespread adoption of green ammonia. It is estimated that the production costs associated with green ammonia are 1.5 times higher than those linked to conventional natural gas-based ammonia production. Consequently, the specter of elevated production costs is anticipated to curtail the growth trajectory of the global green ammonia market throughout the forecast period.

Levelized Cost of Green Ammonia

Significant ambiguity shrouds the production costs associated with green ammonia, primarily stemming from the considerable volume of anticipated production and a dearth of dependable precedents. This uncertainty reverberates through the sphere of capital costs linked to electrolysis. Nonetheless, it is foreseeable that these uncertainties will diminish notably in the coming years, parallel to the implementation of more expansive electrolysis initiatives on a large scale. A parallel level of unpredictability looms over the cost of capital, an aspect susceptible to fluctuations influenced by economic and political variables. With the burgeoning demand for renewable energy, the trajectory suggests that ammonia cracking, devoid of reconversion into hydrogen, should be prioritized by manufacturers aiming for long-term compatibility with green ammonia as a fuel for turbine technology. These factors collectively contribute to escalated production costs and pose impediments to market expansion.

Key Market Trends

Green Ammonia for Energy Storage

The momentum behind the demand for green ammonia as an energy storage solution is rapidly accelerating, driven by the global quest for sustainable alternatives to conventional energy sources. Green ammonia, harnessed through processes powered by renewable energy sources like wind or solar, has emerged as a highly promising contender for the storage and conveyance of clean energy. Green ammonia's ability to be efficiently stored and transported is a pivotal aspect of its appeal as an energy carrier. It can be stored in liquid form under moderate pressure and at relatively low temperatures, streamlining the intricacies of storage and transportation logistics. This inherent flexibility translates into the capability to transport green ammonia from regions with surplus renewable energy to locales with pronounced energy demand, effectively positioning it as a renewable energy conveyance and storage medium.

Moreover, the paramount advantage of green ammonia as an energy storage solution is its exceptional energy density. Ammonia boasts significantly greater energy density by volume in comparison to alternative energy carriers like hydrogen or lithium-ion batteries. This characteristic renders it eminently suitable for protracted storage and conveyance, facilitating its deployment in diverse applications. Furthermore, green ammonia can serve as a source of pristine hydrogen, readily reconvertible into hydrogen as the need arises. This hydrogen can be effectively employed in fuel cells for electricity generation or as a clean fuel in various industrial processes, further enhancing its versatility as an energy carrier. In addition to its prowess as an energy storage medium, green ammonia is a versatile chemical compound, finding utility across an array of industrial applications. It can function as a fertilizer in agriculture, a raw material in chemical production, and a coolant in industrial operations. This dual utility augments its demand and economic feasibility, rendering it an enticing choice for sustainable energy storage.

Encouraging Government Initiatives

Europe is taking bold steps towards a sustainable future with encouraging government initiatives promoting the use of green ammonia. These initiatives have emerged as powerful drivers in the region's transition towards clean energy and decarbonization. Governments across Europe are recognizing the immense potential of green ammonia in reducing carbon emissions, supporting energy security, and bolstering economic growth. This commitment is particularly evident in the European Green Deal, a comprehensive strategy aimed at making the European Union carbon-neutral by 2050. The Green Deal places a strong emphasis on clean energy, and green ammonia is positioned as a crucial component of the sustainable energy landscape. Several European countries have devised strategic roadmaps for green ammonia adoption. Germany, for instance, has launched its National Hydrogen Strategy, which includes green ammonia as a key element. The strategy outlines ambitious goals for the development of hydrogen and ammonia technologies, focusing on their application in various sectors, from transport to industry. Financial incentives, research funding, and supportive regulatory frameworks are being established to accelerate green ammonia projects. In the Netherlands, green ammonia is considered a vital part of the energy transition. The government's commitment to green hydrogen, of which green ammonia is a carrier, is evident in its plans to develop a green hydrogen ecosystem. This involves creating the infrastructure for green ammonia production, storage, and distribution, ensuring its widespread use in sectors like agriculture, industry, and transportation.

Furthermore, Norway, a pioneer in renewable energy, is actively exploring green ammonia production and utilization. With an abundance of renewable resources, Norway aims to harness its wind and hydropower potential to produce green ammonia for both domestic use and export. Such initiatives align with the country's long-term vision of becoming a hub for green ammonia production and a significant contributor to global decarbonization efforts. The European Union is providing support at the supranational level through programs like the European Clean Hydrogen Alliance, which seeks to foster collaboration between governments, industry stakeholders, and researchers in advancing green ammonia technologies. These initiatives demonstrate Europe's commitment to sustainable energy solutions, foster innovation, and drive economic growth while reducing carbon emissions, positioning green ammonia as a pivotal player in the continent's sustainable future.

Segmental Insights

Type Insights

Based on the production method, the alkaline water electrolysis segment is expected to register the highest growth of 55.67% during the forecast period 2024-2032. Alkaline Water Electrolysis (AWE) is swiftly emerging as a highly promising technique for producing green ammonia, and it comes with several notable advantages that contribute to its increasing popularity in both sustainable agriculture and various industries. A standout feature of AWE is its reliance on clean and renewable energy sources like wind or solar power to drive the electrolysis process. This results in minimal to zero carbon emissions during the production of ammonia, aligning seamlessly with the imperative goal of reducing greenhouse gas emissions and addressing climate change head-on. Additionally, AWE offers remarkable scalability, rendering it suitable for a broad spectrum of applications, from large-scale industrial settings to smaller, decentralized systems. Its adaptability and capacity to adjust production levels to meet specific requirements enhance its overall appeal.

Moreover, AWE excels in terms of energy efficiency, ensuring the effective utilization of surplus renewable energy. This means that excess energy generated during periods of peak availability can be effectively stored as green ammonia, serving as an invaluable energy carrier or clean fuel source across diverse applications, including its pivotal role in fertilizers. The green ammonia produced through AWE also boasts a high level of purity, making it compatible with a wide array of industries beyond agriculture, including power generation and transportation. To sum it up, Alkaline Water Electrolysis stands as a sustainable and versatile method for green ammonia production, epitomizing the principles of environmental stewardship, energy efficiency, and scalability that are indispensable for a sustainable future.

End Use Insights

Based on the end use, the power generation segment is expected to register the highest growth of 55.97% during the forecast period, 2024-2032. The increasing demand for green ammonia in power generation applications is a response to the global pursuit of cleaner and more sustainable energy sources. Green ammonia, a product of renewable energy-driven electrolysis, is gaining recognition for its substantial potential as a clean energy carrier and a solution for energy storage. Its role in the power generation sector is multifaceted. Firstly, green ammonia can be employed directly as a fuel in gas turbines or engines, providing a dependable and emissions-free means of electricity generation. Additionally, it serves as a versatile energy carrier, allowing surplus renewable energy to be converted into ammonia during periods of excess supply. This ammonia can then be efficiently converted back into electricity when required, effectively storing intermittent renewable energy.

Furthermore, the ability of green ammonia to transport hydrogen safely and in a denser form positions it as a vital component of the burgeoning hydrogen economy. Ammonia's ease of transport and storage makes it an excellent medium for the international trade of hydrogen, which is considered a fundamental element in the transition to clean energy. The power generation sector is increasingly acknowledging green ammonia's potential to reduce carbon emissions, bolster grid stability, and facilitate the integration of renewable energy sources. Consequently, it is being recognized as a pivotal solution for achieving a sustainable and low-carbon future within the power generation industry. This growing recognition is fuelling the escalating demand for green ammonia in this critical application.

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Country Insights

France will witness fastest growth during the forecast period, 2024-2032. The demand for green ammonia in France is experiencing a significant upsurge as the nation intensifies its commitment to sustainability and clean energy solutions. Green ammonia, produced through renewable energy-driven electrolysis, is gaining prominence as a versatile and eco-friendly energy carrier. France, with its dedication to reducing carbon emissions and transitioning to greener energy sources, sees green ammonia as a vital component of its sustainable energy landscape. In particular, the agriculture sector in France is increasingly adopting green ammonia as a clean and efficient source of nitrogen-based fertilizers, aligning with eco-conscious farming practices. The transportation sector is also showing interest in green ammonia as a potential fuel for reducing emissions in road, maritime, and aviation applications. France's strong emphasis on renewable energy sources, such as wind and solar power, offers ideal conditions for green ammonia production, further boosting its demand. Additionally, government incentives and initiatives to promote clean energy technologies are fostering a favorable environment for green ammonia adoption in France. As the nation strives to meet its ambitious climate goals and promote sustainable practices, the demand for green ammonia is poised for continued growth across various sectors, contributing to France's sustainable energy transition.

Recent Developments

• In September 2022, Brooge Energy Ltd. announced its collaboration with ThyssenKrupp to undertake the technical study of its planned Green Hydrogen and Green Ammonia plant.
• In December 2021, Yara International ASA get funded from Enova of around USD 31 million to produce a green ammonia production plant at Herøya in Porsgrunn. This is one of the largest green ammonia producers' plants globally with a production capacity of around 20,500 tons of ammonia per year.
• In May 2021, RWE, BASF combine for 2 GW "Offshore-to-X" project, to produce green electricity and CO2 free hydrogen known as green hydrogen which is further used in the production of Green Ammonia
• In May 2021, Yara Pilbara signed MOU with Engie to install a renewable hydrogen plant to produce renewable ammonia, by getting funding of USD 31.3 million from ARENA.

Key Market Players

• Yara International ASA
• ThyssenKrupp AG
• Siemens Energy AG
• BASF SE
• NEL Hydrogen AS
• Green Hydrogen Systems A/S

Report Scope:

In this report, the Europe Green Ammonia Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Europe Green Ammonia Market, By Production Method:

o   Alkaline Water Electrolysis

o   Proton Exchange Membrane

o   Solid Oxide Electrolysis

• Europe Green Ammonia Market, By End-use:

o   Power Generation

o   Transportation

o   Fertilizers

o   Others

• Europe Green Ammonia Market, By Country:

o   France

o   Germany

o   Denmark

o   Russia

o   United Kingdom

o   Sweden

o   Switzerland

o   Netherlands

o   Italy

o   Spain

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Europe Green Ammonia Market.

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