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Forecast Period
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2024-2032
|
|
Market Size (2032)
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USD 1591.83 Million
|
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CAGR (2023-2032)
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37.47%
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Fastest Growing Segment
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Alkaline Water Electrolysis
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Largest Market
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United States
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Market Overview
The North America Green Ammonia Market is
anticipated to project robust growth in the forecast period with a CAGR of 37.47%. Green ammonia production
entails the creation of ammonia through entirely renewable and carbon-free
processes. This remarkable substance finds a multitude of applications due to
its unique properties, including the ability to be stored at ultra-low
temperatures, as low as -33°C, or in substantial quantities as a liquid under
minimal pressures, typically around 10–15 bar. Notably, green ammonia is
heralded as a zero-carbon fuel, suitable for combustion in engines or
utilization in fuel cells to generate electricity. Moreover, it serves as a
green hydrogen carrier, facilitating the storage and transportation of clean
hydrogen, a critical component in the renewable energy landscape. The
significance of green ammonia extends to addressing pressing global challenges,
including food security for an ever-growing world population and the generation
of carbon-free electricity. Additionally, it holds immense promise as a
potential climate-neutral transportation fuel in the future, offering a
sustainable alternative to traditional fossil fuels. Furthermore, plans are
underway 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
growth of the North America Green Ammonia Market within the forecast period.
Key Market Drivers
Rising Demand of Green Ammonia in the Power
Generation Sector
In the pursuit of cleaner and more sustainable
energy sources, green ammonia has emerged as a promising candidate, particularly
in the power generation sector. Green ammonia, produced using renewable energy
sources and emitting minimal or no carbon dioxide during production, presents a
compelling solution to reduce greenhouse gas emissions and transition toward a
low-carbon energy future. Ammonia, with its high hydrogen content, has long
been recognized as a potential energy carrier. However, traditional ammonia
production methods, heavily reliant on fossil fuels and emitting substantial
carbon dioxide (CO2), were at odds with sustainability goals. Green ammonia, on
the other hand, is produced using renewable energy sources, primarily wind and
solar power, to generate hydrogen through a process called electrolysis. This
hydrogen is then combined with nitrogen to produce ammonia. The result is a
clean, carbon-free fuel with diverse applications across industries. One of the
most significant drivers of green ammonia demand is its application in power
generation. Green ammonia can be used as a clean fuel in thermal power plants,
helping to replace coal and natural gas. When burned in combustion turbines,
green ammonia produces heat and electricity with zero CO2 emissions, making it
an attractive option for reducing the carbon footprint of power generation. Ammonia
combustion technology is already well-established, making it relatively
straightforward to integrate green ammonia into existing power plants. The
ability to retrofit ammonia into conventional power facilities further
accelerates its adoption, offering a practical solution for reducing emissions
from the energy sector.
Moreover, energy storage is a critical component of
a sustainable energy system, enabling the efficient use of intermittent
renewable energy sources such as wind and solar power. Green ammonia has garnered
attention as a reliable energy storage medium. Excess renewable energy, during
periods of low demand, can be used to produce green ammonia through
electrolysis. This green ammonia can then be stored and transported to where it
is needed, acting as a flexible energy reservoir. When electricity demand
surges, green ammonia can be converted back into electricity through
ammonia-based fuel cells or gas turbines, releasing stored energy and
stabilizing the grid. This versatility in energy storage positions green
ammonia as a vital tool for ensuring a consistent and reliable energy supply,
even in the face of fluctuating renewable energy generation.
Furthermore, the power generation sector is under
increasing pressure to reduce its carbon emissions as nations commit to
ambitious climate goals. Green ammonia presents a compelling solution for power
plants to decarbonize their operations without the need for costly
infrastructure changes. By incorporating green ammonia as a clean fuel, power
plants can align with sustainability objectives and significantly reduce their
carbon footprint. The rapid expansion of renewable energy sources, such as wind
and solar power, has created a need for efficient energy storage solutions.
Green ammonia, as an energy carrier, complements renewable energy integration
efforts by providing a means to store excess energy during peak generation
periods and release it when needed. This role in energy storage positions green
ammonia as an essential component of a reliable and resilient energy grid. The
rapid expansion of renewable energy sources, such as wind and solar power, has
created a need for efficient energy storage solutions. Green ammonia, as an
energy carrier, complements renewable energy integration efforts by providing a
means to store excess energy during peak generation periods and release it when
needed. This role in energy storage positions green ammonia as an essential
component of a reliable and resilient energy grid. Therefore, increasing demand
of green ammonia in power generation sector leading to the growth of North
America Green Ammonia Market.
Growing Demand for Green Ammonia in the Transportation
Sector
The transportation sector is at the forefront of
global efforts to reduce greenhouse gas emissions and combat climate change. As
the world seeks cleaner and more sustainable alternatives to traditional fossil
fuels, green ammonia has emerged as a promising solution for decarbonizing
various modes of transportation. The transportation sector is a significant
contributor to global carbon emissions, with road vehicles, ships, and
airplanes relying heavily on fossil fuels like gasoline, diesel, and kerosene.
To address the environmental challenges associated with traditional
transportation fuels, there is a growing imperative to transition toward
cleaner and more sustainable alternatives. Green ammonia, produced using
renewable energy sources and emitting minimal or no carbon dioxide (CO2) during
production, holds tremendous potential as a clean and sustainable
transportation fuel. Its use can significantly reduce greenhouse gas emissions,
mitigate air pollution, and contribute to a more sustainable future.
Moreover, green ammonia can replace conventional
marine fuels, reducing emissions from cargo ships, cruise liners, and other
vessels. Ammonia-powered engines offer high energy density, enabling longer
voyages without refueling. green ammonia can be used as an alternative to
kerosene in aviation. The development of ammonia-based fuel cells and gas turbines
for aircraft propulsion holds promise for reducing aviation emissions. Ammonia
can be used as a fuel in internal combustion engines or converted to hydrogen
on-board fuel cell vehicles. Its application in heavy-duty trucks, buses, and
off-road vehicles can contribute to cleaner urban transportation. Ammonia-powered
locomotives can offer an eco-friendly solution for freight and passenger rail
services, reducing emissions along rail networks.
Furthermore, governments are investing in the
development of ammonia production and distribution infrastructure to support
the use of green ammonia in transportation. This includes the construction of
ammonia production facilities, transportation networks, and refueling stations
for ammonia-powered vehicles and vessels. Public and private sector investments
in research and development are driving innovation in green ammonia
technologies for transportation. These investments fund projects focused on
improving ammonia-powered engines, fuel cells, and conversion systems, making
green ammonia more accessible and efficient. Thus, the large number of benefits
of green ammonia is anticipated to drive the demand of North America Green
Ammonia Market in the forecast period.
Rising Demand for Green Ammonia in the Fertilizer
Industry
The fertilizer industry plays a crucial role in
ensuring food security and supporting agricultural productivity. Fertilizers
are essential for providing crops with the necessary nutrients to thrive and
meet the growing demands of a burgeoning world population. However, the
conventional production of ammonia-based fertilizers has been associated with
significant environmental challenges, including carbon emissions and
energy-intensive processes. In response to these concerns, the demand for green
ammonia in the fertilizer industry has been steadily rising. Fertilizers are a
cornerstone of modern agriculture, enhancing crop yields and ensuring the
availability of sufficient food supplies for a growing global population. These
essential inputs provide plants with vital nutrients, primarily nitrogen,
phosphorus, and potassium, which are often deficient in soils. Nitrogen-based
fertilizers, particularly ammonia-based ones, are among the most widely used in
agriculture due to their ability to promote plant growth and boost crop
production.
Moreover, the urgent need to address climate change
has prompted governments, industries, and consumers to seek sustainable
alternatives to high-emission processes. Green ammonia production aligns with
global efforts to reduce greenhouse gas emissions and limit global warming. The
transition to renewable energy sources, such as wind, solar, and hydropower,
has created opportunities for sustainable ammonia production. These renewable
energy sources can power electrolysis processes to produce green hydrogen, a
key component in green ammonia synthesis. Growing awareness and concern about
the environmental impact of food production has led consumers to support
sustainable and eco-friendly farming practices. Green ammonia allows the
fertilizer industry to respond to these consumer preferences. Green ammonia can
be used as a feedstock to produce ammonium nitrate, a common nitrogen-based
fertilizer. This sustainable alternative reduces the carbon footprint of
ammonium nitrate production while maintaining its effectiveness in promoting
crop growth. Thus, these factors dominate the growth of North America Green
Ammonia Market in the forecast period.
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Key Market Challenges
Cost Competitiveness
One of the primary challenges facing the green
ammonia market is cost competitiveness. The production of green ammonia, using
renewable energy sources like wind or solar power, can be more expensive
compared to traditional ammonia production methods, which rely on fossil fuels.
The higher initial investment required for green ammonia production
infrastructure, such as electrolyzes and renewable energy facilities, can deter
potential investors. To address this challenge, governments, research
institutions, and private companies must collaborate to drive innovation and
reduce production costs. Advancements in electrolyze technology, economies of
scale, and the development of integrated energy systems can help make green
ammonia more cost-competitive with conventional ammonia production.
The production process has many technical obstacles
that must be overcome as they affect production costs. Green ammonia production
relies on energy-intensive technologies that require high temperatures and
pressures, increasing capital and operating costs. The increasing cost of
renewable energy and electrolysis is one of the significant reasons that is
constraining the adoption of green ammonia. In addition, it is estimated that the
production cost of green ammonia is 1.5 times higher than traditional natural
gas-based ammonia product. Hence, high production costs are expected to limit
the growth of the global green ammonia market during the forecast period.
Levelized Cost of Green Ammonia
There is great uncertainty in the production costs
of green ammonia, mainly due to the large quantity of production forecast and
lack of reliable experience, which affects the capital cost of electrolysis.
These uncertainties should decrease significantly over the next few years as
more large-scale electrolysis projects are implemented. A similar level of
uncertainty exists for the cost of capital, which can be driven by economic and
political factors. As the demand for renewable energy is increasing, it is
expected that cracking ammonia without reconverting to hydrogen suggests that
manufacturers should prioritize to achieving a green ammonia compatibility to
fuel turbine technology in the long term. All the mentioned factors led to
increased production costs and hindered market growth.
Key Market Trends
Green Ammonia for Energy Storage
The demand for green ammonia as a solution for
energy storage is rapidly gaining momentum as the world seeks sustainable
alternatives to traditional energy sources. Green ammonia, produced through a process
powered by renewable energy sources like wind or solar, has emerged as a
promising candidate for storing and transporting clean energy. Green ammonia
can be stored and transported efficiently, making it a versatile energy
carrier. It can be stored in liquid form under moderate pressure and at
relatively low temperatures, which simplifies the logistics of storage and
transportation. This flexibility means that green ammonia can be transported
from regions with surplus renewable energy to areas with high energy demand,
effectively acting as a renewable energy transport and storage medium.
Furthermore, the most significant advantage of
green ammonia as an energy storage solution is its high energy density. Ammonia
has a considerably higher energy density by volume compared to other energy
carriers like hydrogen or lithium-ion batteries. This makes it well-suited for
long-term storage and transportation, enabling the use of green ammonia in
various applications.
Moreover, green ammonia can serve as a source of
clean hydrogen, as it can be easily converted back into hydrogen when needed.
This hydrogen can then be utilized in fuel cells to generate electricity or as
a clean fuel for various industrial processes, further increasing its
versatility as an energy carrier. In addition to its energy storage
capabilities, green ammonia is a versatile chemical compound with numerous
industrial applications. It can be used as a fertilizer in agriculture, a
feedstock in chemical manufacturing, and a coolant in industrial processes.
This dual usability increases its demand and economic viability, making it an
attractive option for sustainable energy storage.
Favorable Government Initiatives
Favorable government initiatives regarding green
ammonia in North America are shaping the region's transition towards
sustainable energy and decarbonization. In the United States, the Biden
administration's commitment to combating climate change and advancing clean
energy has spurred several initiatives aimed at promoting green ammonia. The
American Jobs Plan includes provisions for the development of clean hydrogen
and ammonia as energy carriers, with a focus on using them in the
transportation and industrial sectors. This plan allocates substantial funding
for research, development, and deployment of green ammonia technologies.
Additionally, federal tax credits and incentives for clean energy production
and storage are driving investments in green ammonia infrastructure.
State-level initiatives, such as California's push for clean fuels and energy
storage solutions, further bolster the demand for green ammonia in the country.
Moreover, the government's strong commitment to
sustainable energy aligns with the development of green ammonia. Canada's
Hydrogen Strategy, released in 2020, highlights the role of hydrogen and
ammonia as critical components of the country's clean energy future. The
government is providing financial support for research and development projects
related to green ammonia production, with a focus on utilizing excess renewable
energy generated in provinces like Alberta. In addition, Canada's Low Carbon
and Zero-Emissions Fuels Regulations incentivize the use of low-carbon fuels
like green ammonia in the transportation sector, further promoting its
adoption.
Furthermore, the regulatory framework in North
America is evolving to accommodate green ammonia. Government agencies are
working on establishing clear guidelines and standards for the production,
transportation, and use of green ammonia, ensuring safety and reliability in
its deployment. These regulatory efforts provide confidence to investors and
industry stakeholders, facilitating the growth of green ammonia markets.
Segmental Insights
Type Insights
Based on
the production method, the alkaline water electrolysis segment is expected to
register the highest growth of 55.08% during the forecast period 2024-2032. Alkaline Water
Electrolysis (AWE) is emerging as a highly promising production method for
green ammonia, offering several key benefits that contribute to its growing
popularity in the field of sustainable agriculture and industry. One of the
primary advantages of AWE is its reliance on clean and renewable energy
sources, such as wind or solar power, for the electrolysis process. This
results in minimal or even zero carbon emissions during ammonia production,
aligning perfectly with the goal of reducing greenhouse gas emissions and
combatting climate change. Additionally, AWE exhibits excellent scalability,
making it suitable for both large-scale industrial applications and smaller,
decentralized systems. Its adaptability and flexibility in adjusting production
volumes to meet specific demands enhance its appeal.
Furthermore, AWE offers a
high level of energy efficiency, allowing for the effective utilization of
surplus renewable energy. This means that excess energy generated during
periods of peak availability can be stored as green ammonia, serving as an
energy carrier or a clean fuel source for various applications, including
fertilizers. Green ammonia produced through AWE also boasts high purity,
ensuring its compatibility with a wide range of industries beyond agriculture,
such as power generation and transportation. In summary, Alkaline Water
Electrolysis presents a sustainable and versatile method for green ammonia
production, embodying the principles of environmental responsibility, energy
efficiency, and scalability essential for a sustainable future.
End Use Insights
Based on
the end use, the power generation segment is expected to register the highest
growth of 55.38% during the forecast period, 2024-2032. The demand for green
ammonia in power generation applications is steadily on the rise as the world
seeks cleaner and more sustainable energy sources. Green ammonia, produced
through renewable energy-powered electrolysis, holds immense potential as a
clean energy carrier and storage solution. Its role in power generation is
multifaceted. Firstly, green ammonia can be used directly as a fuel in gas
turbines or engines, providing a reliable and emissions-free source of
electricity generation. Moreover, it can serve as an energy carrier, converting
surplus renewable energy into ammonia during periods of excess supply and then
reconverting it into electricity when needed, effectively storing intermittent
renewable energy.
Furthermore, green
ammonia's ability to transport hydrogen in a denser and safer form makes it a
crucial component in the emerging hydrogen economy. Ammonia can be easily
transported and stored, making it an ideal medium for the international trade
of hydrogen, which is seen as a key element in the transition to clean energy.
The power generation sector recognizes the potential of green ammonia to reduce
carbon emissions, enhance grid stability, and support the integration of
renewables. As a result, it is increasingly viewed as a vital solution for
achieving a sustainable and low-carbon future in the power generation industry,
driving the growing demand for green ammonia in this critical application.
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Country Insights
United States will witness fastest growth during
the forecast period, 2024-2032. In the United States, the demand for green
ammonia is witnessing a significant uptick, driven by a pressing need to
transition towards cleaner and more sustainable energy and agriculture
practices. Green ammonia, produced using renewable energy sources and
sustainable methods, is gaining recognition as a versatile and eco-friendly
solution. In the energy sector, there is a growing interest in using green
ammonia as a clean fuel and energy carrier. It holds promise for decarbonizing
various industries, including power generation, transportation, and industrial
processes. As the U.S. strives to reduce greenhouse gas emissions and combat
climate change, green ammonia is emerging as a key player in achieving these
environmental goals.
Furthermore, the agricultural industry in the
United States, which heavily relies on ammonia-based fertilizers, is exploring
the adoption of green ammonia to mitigate the environmental impact of
traditional ammonia production. Green ammonia offers the potential to reduce
emissions in agriculture while maintaining crop yields, aligning with the
sector's growing emphasis on sustainable and environmentally responsible
farming practices. The U.S. government's commitment to renewable energy and
sustainability initiatives, coupled with increasing investments in green
technology and infrastructure, is expected to further propel the demand for
green ammonia in the country. As the nation seeks innovative solutions to
address environmental challenges and meet ambitious climate targets, green
ammonia is poised to play a crucial role in shaping a more sustainable future
across multiple industries in the United States.
Recent Developments
- In June 2023, AmmPower
Corp. announced a joint venture agreement with CTEC Energy Sales USA Inc.
(a private company) (“CTEC”) to create centres for transforming waste into
ammonia using CTEC and AmmPower technology and products.
- In April 2023, KBR a US
engineering company selected by US green hydrogen producer Avina Clean
Hydrogen to provide its K-GreeN technology for Avina’s green ammonia
project in the US.
- In May 2022, LSB Industries,
Inc. announced that it entered into agreements with ThyssenKrupp Uhde USA,
LLC and Bloom Energy to develop a project to produce approximately 30,000
metric tons of zero-carbon or “green” ammonia per year at LSB’s Pryor, Oklahoma
facility (“Pryor”).
- In April 2021, CF Industries
Holdings signed a contract with Thyssenkrupp for a 20MW green hydrogen
project at its factory in Louisiana.
Key Market Players
- Greenfield Nitrogen LLC
- Avina Clean Hydrogen Inc.
- AmmPower Corp
- LSB Industries, Inc.
- CF Industries Holdings, Inc.
|
By Production Method
|
By End Use
|
By Country
|
- Alkaline Water Electrolysis
- Proton Exchange Membrane
- Solid Oxide Electrolysis
|
- Power Generation
- Transportation
- Fertilizers
- Others
|
- United States
- Mexico
- Canada
|
Report Scope:
In this report, the North America Green Ammonia Market
has been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
- North America Green Ammonia Market, By Type:
o Alkaline Water Electrolysis
o Proton Exchange Membrane
o Solid Oxide Electrolysis
- North America Green Ammonia
Market, By
Application:
o Power Generation
o Transportation
o Fertilizers
o Others
- North America Green Ammonia Market,
By Country:
o United States
o Mexico
o Canada
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the North America Green Ammonia Market.
Available Customizations:
The North America Green Ammonia Market report
with the given market data, Tech Sci Research offers customizations according
to a company's specific needs. The following customization options are
available for the report:
Company Information
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profiling of additional market players (up to five).
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