Green Ammonia Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Green Ammonia Market is projected to expand from USD 986.12 Million in 2025 to USD 15.65 billion by 2031, reflecting a compound annual growth rate of 58.54%. Green ammonia is characterized as ammonia synthesized through carbon-neutral methods, primarily utilizing water electrolysis powered by renewable sources like wind or solar to produce hydrogen.

The market's growth is largely driven by strict global decarbonization regulations and the critical necessity to lower greenhouse gas emissions in difficult-to-abate sectors, such as heavy industry and maritime shipping. Furthermore, the increasing requirement for sustainable agricultural fertilizers and the rising utility of ammonia as a stable medium for hydrogen transport are hastening industrial uptake. Data from the Ammonia Energy Association indicates that in 2024, the global pipeline of announced low-emission ammonia projects amassed a total capacity of 372.5 million tons, highlighting significant sectoral momentum.

Despite this positive trajectory, the market encounters a major obstacle regarding the high levelized cost of production relative to traditional fossil-fuel-based techniques. This economic gap establishes a considerable hurdle for Final Investment Decisions (FID), effectively slowing the transition from project announcements to commercial realization and restricting the immediate availability of supply.

Market Drivers

The increasing utilization of green ammonia as a zero-carbon maritime fuel is fundamentally altering the market landscape as the shipping sector actively seeks feasible substitutes for heavy fuel oil. With international regulations regarding greenhouse gas emissions becoming more stringent, maritime operators are favoring ammonia because of its high energy density and carbon-free combustion. This trend is fostering urgent collaboration between engine manufacturers and fuel producers to establish necessary bunkering infrastructure and propulsion technologies. For instance, WinGD announced in a June 2024 press release that it had secured orders for 10 of its new ammonia-fueled X-DF-A engines, demonstrating the rapid progression from theoretical concepts to commercial procurement within the maritime industry.

Supportive government frameworks and decarbonization mandates serve as a second vital driver, particularly through subsidies aimed at offsetting the green premium associated with sustainable production. Financial tools such as contracts-for-difference and competitive auctions are proving crucial for facilitating Final Investment Decisions (FID) by ensuring reliable revenue streams for producers. A notable example of this policy impact was the German government's H2Global initiative, which successfully completed its first tender. In July 2024, Fertiglobe announced it had won this pilot auction to deliver renewable ammonia to Europe with a contract value up to €397 million, confirming the effectiveness of state-backed procurement. Highlighting this robust investment climate, the Hydrogen Council reported in 2024 that the global volume of committed capital for hydrogen and derivative projects surged to USD 75 billion.

Market Challenges

The principal difficulty hindering the expansion of the Global Green Ammonia Market is the substantial economic gap between the elevated levelized cost of green ammonia production and the established, lower costs of conventional fossil-fuel-based versions. This price premium acts as a significant barrier to finalizing long-term offtake agreements, as price-sensitive end-users in sectors like shipping and agriculture are frequently reluctant to absorb the extra cost without subsidies. Consequently, developers find it difficult to prove the guaranteed revenue streams necessary to satisfy lenders, resulting in a bottleneck where projects remain stalled in the planning phase rather than progressing to construction.

This failure to bridge the financial divide directly delays the industry's shift from theoretical capacity to actual commercial supply. The extent of this stagnation is evident in the low rate of project realization compared to announcements. According to the International Energy Agency, in 2024, merely 4 percent of the global planned electrolyser capacity - the fundamental technology for green ammonia production - had reached the final investment decision stage. This statistic demonstrates how the cost barrier effectively freezes the vast majority of the project pipeline, preventing the market from achieving necessary economies of scale.

Market Trends

The adoption of ammonia co-firing in power generation is developing into a key trend, especially in Asian markets where utilities are modifying coal assets to enhance energy security while reducing emissions. This operational shift enables the direct combustion of ammonia within existing thermal plants, effectively bridging the gap between fossil fuel reliance and a fully renewable grid without requiring complete infrastructure replacement. Japan is actively validating this technology to build a viable supply chain for fuel ammonia. In April 2025, IHI Corporation confirmed in a news article regarding the Hekinan Thermal Power Station that their large-scale demonstration successfully achieved a stable 20 percent ammonia co-firing ratio, proving the system's technical readiness for broader implementation.

Concurrently, the market is undergoing a technological shift toward Solid Oxide Electrolysis (SOEC) to optimize production efficiency relative to traditional alkaline or PEM methods. SOEC systems employ high-temperature electrolysis that integrates industrial waste heat to substantially lower the electrical energy required for hydrogen synthesis, thereby reducing the levelized cost of green ammonia. This efficiency benefit is driving rapid industrial scaling to meet projected global demand. According to a Topsoe press release in October 2025, the manufacturer inaugurated Europe's largest SOEC facility in Herning with an initial annual production capacity of 500 megawatts, underscoring the sector's commitment to deploying this next-generation technology at a commercial scale.

Key Players Profiled in the Green Ammonia Market

• Nel Hydrogen
• Siemens Energy
• MAN Energy Solutions
• ThyssenKrupp AG
• ITM Power PLC
• Hydrogenics
• Green Hydrogen Systems
• McPhy Energy
• Electrochaea
• EXYTRON
• AquaHydrex

Report Scope

In this report, the Global Green Ammonia Market has been segmented into the following categories:

Green Ammonia Market, by Production Method:

• Alkaline Water Electrolysis
• Proton Exchange Membrane
• Solid Oxide Electrolysis

Green Ammonia Market, by End Use:

• Power Generation
• Transportation
• Fertilizers
• Others

Green Ammonia Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

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

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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