The green ammonia market is witnessing explosive growth as global industries and governments intensify efforts to decarbonize the energy and agriculture sectors. Key industry players like Yara, Siemens, and ACME are instrumental in advancing the green ammonia market through strategic project development and technology innovation.
Chicago, Jan. 16, 2026 (GLOBE NEWSWIRE) — According to recent data from Astute Analytica, the global green ammonia market was valued at US$ 662.48 million in 2024 and is projected to hit the market valuation of US$ 38,522.58 million by 2033 at a CAGR of 60.36% during the forecast period 2025–2033.
Developing economies are increasingly prioritizing domestic production of green ammonia as a critical strategy to reduce their reliance on imported fertilizers and bolster food security. Many of these nations face significant challenges due to volatile global fertilizer markets and rising import costs, which directly impact agricultural productivity and food affordability. By fostering local production capabilities, countries aim to build more resilient agricultural supply chains that can sustain their growing populations and reduce vulnerability to external shocks.
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The African Union’s ambitious Agenda 2063 neutrality goals exemplify how regional policies are driving sustainable development through innovative public-private partnerships. These ventures harness abundant wind and solar resources to power green ammonia production, directly benefiting smallholder farming cooperatives across the continent. By integrating renewable energy with agriculture at the grassroots level, these initiatives empower small-scale farmers with affordable, locally produced fertilizers, enhancing crop yields and livelihoods while advancing climate goals.
Pioneering Green Ammonia Co-Firing: Japan and South Korea Lead the Charge
An exciting trend gaining momentum in the green ammonia market is its growing use for co-firing in thermal power plants. This move significantly reduces carbon emissions from coal-fired units. Japan and South Korea are at the forefront of this innovation, setting ambitious benchmarks for large-scale adoption. In early 2025, Japan’s energy giant JERA initiated preparations for a groundbreaking demonstration project at a 1 GW coal-fired power unit, planning to blend in an initial 500,000 tons of ammonia annually.
Meanwhile, South Korea aims to retrofit 24 coal power units for ammonia co-firing by the same year. To meet this rising demand, Lotte Chemical is investing a substantial 600 billion won (approximately $450 million) in a clean ammonia production facility, targeting an initial 150,000 tons of output specifically for the domestic power sector. These initiatives not only demonstrate the feasibility of ammonia co-firing but also highlight a strategic pivot toward cleaner power generation in key Asian economies.
Green Ammonia as a Game-Changer for Renewable Energy Stability
Beyond power generation, green ammonia is carving out a vital role as a long-duration energy storage medium and a dispatchable power source—critical components for stabilizing grids with high shares of renewable energy. The UK government’s 2024 announcement of £4 million in funding for eight ammonia-to-power projects underscores the national commitment to this technology. One flagship project aims to develop a 50 MW ammonia-fueled gas turbine demonstrator by 2025, showcasing the potential of ammonia to provide flexible, large-scale grid support.
Across the Atlantic, the U.S. Department of Energy launched a project in 2025 to develop a solid oxide fuel cell system that directly converts ammonia into 100 kW of electricity, targeting grid stabilization applications. These innovations are pivotal in enabling renewable-heavy electricity systems to operate reliably and efficiently, positioning green ammonia as an indispensable element of future energy infrastructures.
The Power of Scale: Large-Scale Green Ammonia Production Dominates
Large-scale green ammonia production facilities represent the backbone of market growth, commanding a dominant 45.63% share of the market. The sheer scale of these operations drives down costs through economies of scale, making green ammonia increasingly competitive with traditional ammonia production methods. Massive capital investments underpin these ventures, facilitating the construction of the infrastructure necessary for high-volume output.
For instance, South Africa is home to a newly announced $5.8 billion project slated to produce 1 million tons of green ammonia annually by 2029. Similarly, a $5 billion Saudi Arabian facility is expected to begin producing 1.2 million tons per year starting in 2025. These monumental projects are essential to supply the rapidly expanding global demand for green ammonia and to support the transition to a low-carbon economy.
Industrial Demand: Fertilizers Lead the Green Ammonia Consumption
Industrial consumers are the primary drivers propelling the green ammonia market forward, accounting for an overwhelming 77.97% of revenue share. Green ammonia serves as a direct, carbon-neutral replacement for conventional ammonia, which remains a critical feedstock in a variety of industrial processes. The fertilizer industry stands out as the largest consumer, historically reliant on ammonia for nitrogen-based fertilizers.
Transitioning to green ammonia allows this sector to significantly reduce its carbon footprint, aligning with global sustainability goals and the urgent need to promote sustainable agriculture. The shift not only supports environmental stewardship but also addresses growing regulatory and market pressures for decarbonization in industrial operations.
Asia Pacific: The Global Epicenter of Green Ammonia Expansion
The Asia Pacific (APAC) region is poised to dominate the global green ammonia market, projected to hold an impressive 50.48% share by 2033. This leadership position stems from a robust project pipeline, heavy investment commitments, and strong governmental backing across key countries like India, China, and Australia. India, for example, is witnessing major developments with companies such as Avaada Group advancing a 1.1 million-tonne-per-annum green ammonia plant in Odisha, and Ocior Energy spearheading a $4 billion, 1 million-tonne facility in Gujarat.
In addition, YamnaCo’s memorandum of understanding, signed in July 2025 for a 1 million-tonne-per-year plant in Andhra Pradesh, supported by a $1.9 billion investment, exemplifies the region’s momentum. Australia’s Gibson Island project, despite facing delays, benefits from an AUD$13.7 million ARENA grant for its front-end engineering and design study, aiming for 400,000 tons of green ammonia output. These strategic initiatives across APAC underscore the region’s vital role in shaping the future of the green ammonia economy.
Top Companies in the Green Ammonia Market
- CF Industries Holdings, Inc.
- Yara International ASA
- ThyssenKrupp AG
- ACME Group
- Air Products
- Siemens
- Socemo
- Other prominent players
Market Segmentation Overview
By Technology
- Alkaline Water Electrolysis
- Proton Exchange Membrane Electrolysis
- Solid Oxide Electrolysis
- Others
By Capacity
- Small Scale
- Medium Scale
- Large Scale
By End User
- Industrial
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- Fertilizer
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- Chemical
-
- Pharmaceutical
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- Textile
- Transportation
- Power Generation
- Others
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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About Astute Analytica
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CONTACT: Contact Us: Astute Analytica Phone: +1-888 429 6757 (US Toll Free); +91-0120- 4483891 (Rest of the World) For Sales Enquiries: sales@astuteanalytica.com Website: https://www.astuteanalytica.com/
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