Europe Green Ammonia Market

The Europe Green Ammonia Market is valued at USD 567.3 Million in 2023 and is projected to reach a value of USD 36395.4 Million by 2032 at a CAGR (Compound Annual Growth Rate) of 58.8% between 2024 and 2032 driven by the global shift towards cleaner energy sources to combat climate change, which is produced using renewable energy sources and emits no carbon dioxide.

Key Highlights

• In 2023, Based on Technology, Alkaline Water Electrolysis accounts for largest market share of 54.5%
• Based on End Use, Power Generation segment holds largest market share of 56.1% in 2023
• France is leading the European region and experiencing a significant rise in demand for green ammonia as it intensifies its commitment to sustainability and clean energy

Major objectives of Europe Green Ammonia Market Study

• To gain a comprehensive understanding of the Europe Green Ammonia market by identifying its key segments and subsegments
• To provide an in-depth analysis of the factors driving or hindering market growth, including emerging opportunities and challenges specific to the industry
• To analyze individual market segments for growth trends, future prospects, and their impact on the overall market
• To explore potential opportunities for stakeholders in the Europe Green Ammonia market and to map out the competitive landscape of leading players
• To profile major companies within the market, evaluating their market share, strengths, and competitive advantages

Europe Green Ammonia Market Government Initiatives

• In July 2024, The Egyptian government and the European Union (EU) are pushing forward green hydrogen and green ammonia initiatives through their strategic partnership and new private investment agreements between European and Egyptian companies. Valued at €40 billion, these agreements, covering renewable energy and hydrogen projects, were finalized during the EU-Egypt Investment Conference held on June 29-30
• In June 2023, Iberdrola, a global leader in green energy, and Trammo, the world’s largest seaborne trader of anhydrous ammonia, have entered into the largest green ammonia framework agreement in Europe to date. This agreement will facilitate the purchase and sale of up to 100,000 tons of green ammonia annually, starting in 2026
• In July 2024, Germany has secured a contract to import green ammonia from Egypt. Between 2027 and 2033, Germany will receive a minimum of 259,000 tonnes of green ammonia as part of this agreement

Technology Overview

​The Technology segment is divided into Solid Oxide Electrolysis, Proton Exchange Membrane, Alkaline Water Electrolysis, Others. In 2023, Alkaline Water Electrolysis accounts for market share of 54.5%.

Alkaline Water Electrolysis (AWE) is increasingly popular as a very efficient way to make green ammonia due to various advantages like sustainable agriculture and various industries. AWE has many advantages including it produces ammonia with zero carbon emissions by using clean, renewable energy sources like solar and wind power. AWE is ideal for growing need to reduce greenhouse gas emissions and fight climate change. Furthermore, AWE is adaptable for a variety of applications, ranging from large industrial processes to smaller, decentralized systems, due to its remarkable scalability.

End-User Overview

The End-User segment is divided into Power Generation, Transportation, Fertilizer, Refrigeration, Others. Power Generation holds largest market share of 56.1% in 2023.

The rising demand for green ammonia in power generation reflects the global drive towards cleaner and more sustainable energy sources. Green Ammonia can be used directly as a fuel in gas turbines or engines, providing a reliable, emissions-free method of generating electricity. Additionally, green ammonia functions as a versatile energy carrier, converting excess renewable energy into ammonia during periods of high supply. Intermittent renewable energy can be efficiently managed by converting this stored ammonia back into electricity as needed.

Premium Insights

The Europe Green Ammonia Market is driven by the growing demand for sustainable and low-carbon energy solutions across various industries. Improvements in production technologies, including more efficient electrolysis and integration of renewable energy, are making green ammonia increasingly feasible and cost-effective. France is at the forefront of the European region, emphasizing carbon reduction and a shift to greener energy solutions, highlighting the critical role of green ammonia in its sustainable energy strategy. The agriculture sector is increasingly adopting green ammonia for nitrogen-based fertilizers, aligning with eco-friendly farming practices. Meanwhile, the transportation sector is exploring green ammonia as a fuel alternative to reduce emissions across road, maritime, and aviation applications. France’s robust renewable energy infrastructure, including wind and solar power, provides an ideal backdrop for green ammonia production, enhancing its market potential.

Based on the provided market data, Vantage Market Research offers customizations in the reports to meet the specific needs of clients.

Key Trends

• Growing Emphasis on Decarbonization: The shift towards green steel, produced using low-emission technologies like hydrogen-based direct reduction or electric arc furnaces powered by renewable energy in response to stringent environmental regulations and climate targets
• Technological Innovations: Advances in green steel production technologies, such as hydrogen-based reduction methods and carbon capture and storage (CCS), are driving market growth. Innovations are aimed at making green steel production more cost-effective and scalable
• Regulatory and Policy Support: European governments and the European Union are implementing policies and regulations that promote sustainable practices, including subsidies, incentives, and emissions trading schemes, which are encouraging the adoption of green steel technologies
• Consumer and Industry Adoption: As green steel becomes more viable and cost-effective, adoption is expected to increase across industries such as automotive, construction, and manufacturing, which are seeking to meet their sustainability targets

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Market Definition

​Green Ammonia refers to ammonia that is produced using renewable energy sources, such as wind, solar, or hydropower, rather than traditional fossil fuels. The production process involves generating hydrogen through the electrolysis of water using renewable electricity, which is then combined with nitrogen to produce ammonia. This method results in minimal to zero carbon dioxide emissions, making green ammonia a sustainable and eco-friendly alternative to conventional ammonia, which is typically produced using natural gas and associated with significant carbon emissions.

Market Dynamics

Increasing Green Ammonia Demand from Various Industries

The European green ammonia market is experiencing significant growth driven by rising demand across various industries. In power generation, green ammonia offers a cleaner energy solution by using renewable sources to produce ammonia, which can replace coal and natural gas in power plants. It reduces carbon emissions and supporting the transition to a low-carbon energy future. Its significance in stabilizing electricity systems is further enhanced by its capacity to store excess renewable energy as ammonia. As long as infrastructure and technological support adoption, green ammonia offers a viable alternative to reduce emissions from heavy-duty vehicles, aircraft, and marine vessels in the transportation sector. Furthermore, because green ammonia has the ability to supply the expanding demand for agricultural nutrients while reducing carbon emissions connected with conventional ammonia production, the fertilizer sector is gradually moving toward it.

High production costs associated with its manufacturing restraints the market

The process of producing green ammonia, which involves electrolysis powered by renewable energy sources, requires significant investment in infrastructure and technology. These expenses cover the setup of renewable energy systems, electrolyzers, and related facilities. The market's expansion and adoption may be restricted by high production costs, especially when compared with more affordable traditional ammonia production techniques. This expensive obstacle may hinder green ammonia's ability to compete and delay the market's acceptance of it.

Technological advancements present a significant opportunity for the Europe Green Ammonia market

Production costs can be reduced by advancements in renewable energy sources and electrolysis technology, such as more economical and efficient electrolyzers. Technological advancements have the potential to improve the economic viability and scalability of green ammonia production. These developments increases the competitiveness of green ammonia and create new opportunities for its use in a variety of industries. The green ammonia market can accelerate its growth and play a greater role in Europe's shift to sustainable energy by investing in and implementing cutting-edge technologies.

Competitive Landscape

The competitive landscape of the Europe Green Ammonia market is characterized by key players including major energy and chemical companies, are actively investing in green ammonia projects to capitalize on the rising demand for sustainable energy solutions. Companies such as Uniper SE and YARA International are leading initiatives, forming partnerships to enhance production capabilities and establish infrastructure, such as green ammonia hubs. This competitive environment is further fueled by advancements in electrolysis technology and increasing support from government policies aimed at reducing carbon emissions.

The key players in the global Europe Green Ammonia market include - Siemens Energy AG, Yara International ASA, Thyssenkrupp AG, Linde plc, BASF SE, MAN Energy Solutions SE, Mitsubishi Power Europe GmbH, Haldor Topsoe A/S, Nel ASA, ENGIE SA, Hydrogenics Corporation (A subsidiary of Cummins Inc.), Uniper SE, Others among others.

Recent Market Developments

ITM Power and YARA International Partner for 24 MW Electrolyzer to Boost Green Ammonia Production

• In January 2022, ITM Power secured a deal with YARA International, an EPC company, to deliver a 24 MW electrolyzer for Yara Norge AS. This partnership underscores YARA’s dedication to advancing green ammonia production by integrating ITM Power's cutting-edge electrolysis technology

Uniper SE and Vesta Establish Greenpoint Valley, Northwest Europe's First Green Ammonia Hub

• In September 2022, Uniper SE and Vesta formalized a Memorandum of Understanding to enhance an existing storage facility, paving the way for Greenpoint Valley, the first green ammonia hub in Northwest Europe. This initiative positions Uniper to play a key role in the expanding green ammonia and hydrogen sectors, reinforcing supply security across Europe

The global Europe Green Ammonia market can be categorized as Production, Technology, End-User and Region.