United
Kingdom Green Ammonia Market
is anticipated to grow at a significant rate in the forecast period, 2024-2028. Ammonia is a chemical
compound made of nitrogen and hydrogen atoms. It is widely used in the
agriculture and chemical industries, as well as in refrigeration and cleaning
products. However, the traditional process for producing ammonia involves high
energy consumption and greenhouse gas emissions, which have led to the
development of "green ammonia" as an alternative. According to the
United Kingdom Government, the UK reduced its power sector emissions by over 70
percent between 1990 and 2019 and generates more electricity from offshore wind
than any other country.
The
chemical industry is one of the largest consumers of nitrogen, with ammonia being
a key feedstock to produce a wide range of chemicals, including fertilizers,
plastics, and pharmaceuticals. The use of green ammonia provides a sustainable
and low-carbon alternative to traditional ammonia, helping to reduce the
environmental impact of the chemical industry. According to the European
Chemical Industry Council or Cefic, chemicals, and pharmaceuticals were the
UK's second-largest manufacturing sector in 2021, trailing only machinery and
transport equipment, with exports exceeding USD54 billion and value added to
the economy of USD30.7 billion. The demand for green ammonia in the
chemical industry in the UK is being driven by a range of factors, including
government regulations and policies aimed at reducing greenhouse gas emissions
and promoting sustainable practices in the industry. The UK government has set
ambitious targets for reducing greenhouse gas emissions, to achieve net-zero
emissions by 2050. To achieve this target, the government has implemented a
range of policies and regulations to encourage the development of low-carbon
technologies, including green ammonia.
Green ammonia is quickly gaining
traction as a sustainable and low-carbon alternative to traditional bunker
fuels in the shipping industry in the United Kingdom (UK). As one of the
largest emitters of greenhouse gases, the shipping industry is under increasing
pressure to reduce its carbon footprint and transition to more sustainable
fuels. As per Maritime UK, the shipping sector contributes USD11 billion to
GDP and is crucial to the economy. In addition, it contributes USD2.75 billion
in taxes to the UK government, which sustains 240,000 jobs. One of the key
policies driving the adoption of green ammonia in the shipping industry is the
International Maritime Organization's (IMO) target of reducing greenhouse gas
emissions from the shipping sector by at least 50% by 2050 compared to 2008
levels. The use of green ammonia can help shipping companies to meet these
targets and reduce their carbon footprint. The shipping industry in the UK is
increasingly recognizing the benefits of using green ammonia as a sustainable
and low-carbon alternative to traditional bunker fuels. The use of green
ammonia can help shipping companies to reduce their carbon footprint, comply
with government regulations, and meet the growing demand for sustainable
transportation. As the demand for sustainable and low-carbon transportation
options continues to grow, the use of green ammonia is poised to become an
increasingly important component of the shipping industry in the UK. With
government support and a growing awareness of the benefits of sustainable
practices, the shipping industry is helping to create a more sustainable and
resilient transportation sector in the UK.
Green
ammonia is produced using renewable energy sources such as wind, solar, or
hydropower, which can help reduce the carbon footprint of the ammonia industry.
The growing demand for sustainable and environmentally friendly practices has
created a significant market for green ammonia. According to the
International Renewable Energy Agency (IRENA), ammonia production accounted for
around 45% of global hydrogen consumption or around 33 million tonnes (Mt) of
hydrogen in 2020.
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Increasing
demand for renewable energy
The
shift towards renewable energy sources has been a major driver for the green
ammonia market in the UK. With the increasing demand for sustainable energy
solutions, green ammonia production can play a vital role in providing a clean
energy source for various applications. The growing interest in green ammonia
is mostly a result of the rising demand for renewable energy. Renewable energy
is taking on more significance in the global energy mix as nations strive to
cut their greenhouse gas emissions and shift to low-carbon economies. In many
regions of the world, such as the United Kingdom, the renewable energy
sources like wind and solar power are already economically competitive with
conventional fossil fuels, and their costs are still falling. This makes using
renewable energy for industrial purposes like the manufacturing of ammonia
progressively more viable, especially in areas with an abundance of renewable
resources. Another benefit of producing green ammonia with renewable energy is
that it can be done in remote areas without access to conventional energy.
Favorable
Government Regulations and Policies
The
United Kingdom has become an international leader in the production of
green ammonia in recent years owing to encouraging laws and policies designed
to cut greenhouse gas emissions and support renewable energy sources. To attain
net-zero emissions by the year 2050, the United Kingdom government has set
challenging goals for reducing greenhouse gas emissions. One of the key
policies driving the development of green ammonia in the UK is the Renewable
Transport Fuel Obligation (RTFO). The RTFO requires transport fuel suppliers to
demonstrate that a certain percentage of their fuel comes from renewable
sources, including green ammonia. This has created a market for green ammonia
as a transport fuel, providing an alternative to traditional fossil fuels. In
addition to the RTFO, the UK government has also implemented a range of other
policies and incentives to encourage the development of green ammonia. For
example, the government has established a Green Gas Levy to provide funding to
produce green gas, including green ammonia.
Rising
Use of Green Ammonia in Agriculture and Food Industry
The
agriculture and food industry are major users of ammonia, with ammonia-based
fertilizers playing a key role in the production of food crops. However, the
traditional method of ammonia production is energy-intensive and emits significant
amounts of carbon dioxide. This has led to growing interest in green ammonia,
which is produced using renewable energy sources and has a significantly lower
carbon footprint. Green ammonia is a key component of sustainable agriculture
practices, as it provides a source of nitrogen for plants without contributing
to greenhouse gas emissions. Nitrogen is a critical element for plant growth
and is typically supplied to crops using synthetic fertilizers that are
produced using fossil fuels. The agriculture and food industry in the United
Kingdom (UK) is increasingly turning to green ammonia as a sustainable and
low-carbon source of fertilizer. Green ammonia is produced using renewable
energy sources such as wind and solar power and has a significantly lower
carbon footprint than traditional ammonia, which is produced using fossil
fuels. The demand for green ammonia in the agriculture and food industry in the
UK is being driven by a range of factors, including consumer demand for sustainable
and organic food, and government regulations and policies aimed at reducing
greenhouse gas emissions and promoting sustainable agriculture practices. Consumers
are increasingly demanding sustainably produced food and are willing to pay a
premium for products that are produced using sustainable and low-carbon
practices. The use of green ammonia in agriculture provides a way for farmers
to meet this demand, and to differentiate their products in a jammed market.
Recent
Developments
- Essar
Group is developing Stanlow Terminals in the Port of Liverpool, UK, to import
green ammonia and store more than 1 million tonnes per year. The new terminal
will contribute to Essar’s ambition to become a major player in low-carbon
energy innovation and a leader in production globally. Moreover, the terminal
can import and store more than 1 million tonnes of green ammonia per year for
further distribution into the UK or conversion back to green hydrogen for
supply to the North West’s industrial customers.
- As
per UK Research and Innovation, researchers at the Science and Technology
Facilities Council (STFC) are constructing a small-scale facility to produce
ammonia only from renewable energy sources. STFC and the University of Bath are
working together to lead the second phase of the Ammonia Synthesis Plant from
Intermittent Renewable Energy (ASPIRE) initiative.
Market Segmentation
United Kingdom Green Ammonia
Market is segmented into Production Method, End Use, Region, and Company. Based
on Production Method, the market is divided into Alkaline Water Electrolysis,
Proton Exchange Membrane, and Solid Oxide Electrolysis. Based on End Use, the
market is divided into Power Generation, Transportation, Fertilizers, and
Others. Based on Region, the market is segmented into Scotland, South-East,
London, South-West, East-Anglia, Yorkshire & Humberside, and East Midlands and
Rest of the United Kingdom.
Company Profiles
ATOME
Energy PLC, Siemens Energy Limited, Eneus Energy Limited, Yara International
ASA, Haldor Topsoe Holding A/S, ThyssenKrupp AG, ITM Power plc, RWE AG, HIIROC
Limited and Scottish Power Ltd are some of the key players in the United
Kingdom Green Ammonia Market.
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Attribute
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Details
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Base Year
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2022
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Historic Data
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2018 – 2021
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Estimated Year
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2023
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Forecast Period
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2024 – 2028
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Quantitative Units
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Revenue in USD Million and CAGR for 2018-2022 and 2023-2028
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Report coverage
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Revenue forecast,
company shares, competitive landscape, growth factors, and trends
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Segments covered
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Production Method
End Use
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Regional scope
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Scotland,
South-East, London, South-West, East-Anglia, Yorkshire & Humberside, East
Midlands and Rest of United Kingdom.
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Key companies profiled
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ATOME Energy PLC, Siemens Energy Limited, Eneus
Energy Limited, Yara International ASA, Haldor Topsoe Holding A/S,
ThyssenKrupp AG, ITM Power plc, RWE AG, HIIROC Limited and Scottish Power Ltd
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Customization scope
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10% free report customization with purchase.
Addition or alteration to country, regional & segment scope.
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Pricing and purchase options
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Avail customized
purchase options to meet your exact research needs. Explore purchase options
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Delivery Format
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PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
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Report Scope:
In this report, United Kingdom Green Ammonia Market has
been segmented into the following categories, in addition to the industry trends,
which have also been detailed below:
·
United Kingdom Green Ammonia
Market, By Production Method:
o Alkaline Water Electrolysis
o Proton Exchange Membrane
o Solid Oxide Electrolysis
·
United Kingdom Green Ammonia Market, By End Use:
o Power Generation
o Transportation
o Fertilizers
o Others
·
United Kingdom Green Ammonia Market, By Region:
o Scotland
o South-East
o London
o South-West
o East-Anglia
o Yorkshire & Humberside
o East Midlands
o Rest of United Kingdom
Competitive landscape
Company Profiles: Detailed analysis of the major companies in United
Kingdom Green Ammonia Market.
Available Customizations:
With the given market data, TechSci 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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(up to five).
United Kingdom Green Ammonia
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