The green ammonia market was valued at USD 17 million in 2019 and is projected to reach USD 852 million by 2030, at a CAGR of 54.9% during the forecast period.
Rising obligations to reduce greenhouse gas emissions from traditional ammonia methods have driven the global green ammonia market growth.
Furthermore, increased agriculture production and subsequent rise in fertilizer consumption is driving the green ammonia market.
However, higher initial capital requirements for green ammonia plant infrastructures is likely to hamper the growth of green ammonia market.
The power generation segment, by end-user, is expected to be the largest and the fastest-growing market from 2020 to 2030
The end-user segment is categorized as transportation, power generation, and industrial feedstock.
The power generation segment is expected to grow at the highest CAGR during the forecast period, as electricity generated by using green ammonia is observed to be the cleaner version of gas.
By using the electrolysis process, surplus renewable energy generated at isolated locations can be used to produce carbon-free ammonia, which can act as a sustainable fuel for power generation.
Furthermore, the need for long term storage of renewable energy generated at isolated wind farms and solar panels drives the growth of green ammonia market.
Europe is expected to hold the largest power generation market. This growth is owing to the favourable government initiatives and plans to produce green ammonia in the Netherlands.
The Solid Oxide Electrolysis segment, by technology, is expected to be the fastest-growing market from 2020 to 2030
The SOE segment is expected to be the fastest-growing technology sub-segment during the forecast period, owing to the increasing demand for fuel cells.
The SOE process is used to produce green hydrogen from surplus electricity generated from renewable sources.
Such green hydrogen can be synthesised further in ammonia synthesis plant to produce green ammonia by using SOE technology.
Moreover, the green hydrogen produced by the process can be stored and used as a fuel cell, and reconverted into electricity again when the demand arises.
This allows the storage of electricity when production exceeds demand. This is driving the growth of the SOE segment in the global green ammonia market.
Europe is projected to hold the largest SOE market by 2030, owing to the rising demand for fuel cells in Germany.
Europe: The largest and the fastest-growing region in the green ammonia market
Europe is expected to dominate the global green ammonia market between 2020 and 2030.
The increasing number of fuel cell projects and European government initiatives for the deployment of fuel cells in the residential and commercial sectors are likely to provide growth opportunities for the growth of the green ammonia market in the region.
Fuel cells are an efficient and clean energy alternative, which has the potential to address the energy challenges of the region.
The Fuel Cells and Hydrogen Joint Undertaking is the primary body that supports R&D for fuel cell and hydrogen technologies in Europe.
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