Green Ammonia Market Size, Share, Growth Analysis, By Gasifier Technology(Alkaline Water Electrolysis, Proton Exchange Membrane Electrolysis, and Solid Oxide Electrolysis), By Application(Power Generation, Transportation, Feedstock, Fertilizer), By Region - Industry Forecast 2024-2031

Drivers

• Growing Demand for Green Fertilizers

In recent times, the quality of soil has massively reduced due to the widespread utilization of chemical fertilizers and pesticides. The demand for organic fertilizers is increasing rapidly due to the rising popularity for sustainable agricultural practices that minimize risk generation. These fertilizers are also reducing carbon emissions. Prominent agrochemical manufacturers are being encouraged by this to change their preference for green and sustainable products such as green ammonia. Therefore, the growing demand for green fertilizers to minimize environmental threats and pollution is boosting the green ammonia market.

• Growing Demand in Marine Sector to Drive Green Ammonia Market

Ships utilize a lot of petroleum and expensive fuel, and it is one of the factors due to which the marine sector accounts for the maximum greenhouse emissions. The most used bunker fuel for ships are heavy petroleum oils, which are manufactured as a by-product of the distillation of petroleum products. This fuel emits toxic SOx into the atmosphere. Ammonia is the most efficient energy carrier of protons due to which it is perfect for providing energy to ships. It is expected that the use of ammonia as fuel will increase in the marine sector with the increasing demand for sustainable energy.  

Restraints

• Shortage of Knowledge about Green Ammonia

The manufacturing of green ammonia is still at its infant stage. There are various ways that are utilized to make green ammonia using water and nitrogen like synthesis process photochemistry synthesizing, and biochemical cycling. These procedures have immense technological difficulties that need rigorous effort and research and development. But most of the ammonia manufacturers are still using conventional techniques. This is mainly because they do not have much idea about modern procedures. These manufacturing hubs, especially in emerging economies, don’t have the skilled workforce that is necessary for producing green ammonia.

• High Cost of Production

The high expense of manufacturing green ammonia that is currently expensive compared to the traditional ammonia is one of the primary factors hindering the growth. Massive-scale production of green ammonia needs complex infrastructures and technology along with high renewable energy expenses. A massive barrier to this market’s development is also the lack of reliable green ammonia supply networks.