PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1100667
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1100667
The global green ammonia market is expected to increase from USD 38.8 million in 2021, expanding at a CAGR of 66.1% during the forecast period of 2021 to 2027.
Green ammonia is made by combining nitrogen with green hydrogen in an electrochemical Haber-Bosch system. Green ammonia is ammonia that has no carbon. Electrolyzers are employed in the synthesis of green hydrogen and operate in an alkaline water medium, a proton exchange membrane, or a solid oxide media. To generate green hydrogen, these electrolyzers utilize power produced from renewable sources such as solar, wind, and tidal.
In terms of overall capacity addition, renewable energy generation continues to exceed fossil fuel power generation. Solar and wind are high potential renewable energy sources, according to the International Renewable Energy Agency (IRENA), and are expected to dominate the renewable power sector in the future years. Global renewable power capacity was 2799 GW by the end of 2020. In addition, hydropower accounted for the lion's share of the worldwide industry, contributing more than 1211 GW of capacity. With capabilities of 733 GW and 714 GW, respectively, wind and solar energy contributed an equal amount of the remaining. Other renewables included 127 gigatonnes of bioenergy, 14 gigatonnes of geothermal energy, and 500 gigatonnes of marine energy.
Moreover, the electrical technology may be used to produce carbon-free ammonia that can be used to generate power in a sustainable manner using surplus renewable energy gathered in remote locations. Furthermore, the industry is expanding due to the need for long-term storage on solar panels and solar farms.
The green Ammonia market is divided in terms of technology, end-user, and region.
The market is divided into three categories based on technology: proton exchange membrane (PEM), alkaline water electrolysis (AWE), and solid oxide electrolysis (SOE). The solid oxide electrolysis (SOE) category accounted for the lion's share of the market, and it is expected to retain its attractiveness during the forecast period, owing to an increase in demand for fuel cells. In times of excess supply, fuel cells can also be used to store electricity.
The global market is divided into three segments based on end-user: power generation, transportation, and industrial feedstock. The power-generating category held the lion's share of the market. Green ammonia power generation is a greener alternative to coal power generation since it minimizes carbon emissions and is a step toward sustainable development.
Several countries and organizations throughout the world are adopting regulatory mandates and legislative directives about industrial carbon emissions. The fertilizer business, as well as the chemical and refrigeration industries, is a major end-user of ammonia. Because of the high demand for ammonia, it is critical to discover cleaner alternatives to ammonia in order to reduce carbon emissions. The primary market driver of the green ammonia market is the obligation of sustainable development.
Given the increased demand for environmentally acceptable fuel sources, numerous industry participants are investing in the research and development of technology for green ammonia projects. Furthermore, the growth of production capacity through collaboration, partnership, and merging with small units in new geographical locations is indicative of large players' strategy to remain competitive in the market.
For instance, significant advancement has been announced by MAN Energy Solutions, a mechanical engineering firm. It intends to develop a two-stroke engine that can run on green ammonia fuel for maritime motor vehicles.
The scope of this report covers the market by its major segments, which include as follows: