Green ammonia uses renewable energy instead of natural gas or coal for producing hydrogen; hence, is an effective way to reduce greenhouse emissions. The electrochemical Haber-Bosch process produces ammonia without any greenhouse emissions. Green ammonia refers to ammonia, which has been produced through a process that is 100% renewable and carbon-free. Reducing the carbon dioxide emissions during the production process is essential to achieve zero emission targets.
According to the new market research report published by MarketsandMarkets™, the Green Ammonia Market size will grow to USD 852 million by 2030 from USD 11 million in 2020, at a CAGR of 54.9% during 2020 to 2030. The rising investments in green fuel and large scale green energy plans in Europe and North America, drives the Green Ammonia Market in the region. Moreover, increasing adoption of electric vehicles leads to renewable energy deployment at large scale in Asia Pacific region, creates opportunities for Green Ammonia Market.
The power generation segment is expected to be the fastest growing segment of Green Ammonia Market. This is mainly because of the increasing share of renewables in the power generation mix and decreasing cost of equipment and technology associated with renewables. According to the International Renewable Energy Agency (IRENA), solar and wind are the most potential renewable energy sources and are likely to dominate the renewable power sector in the coming years. Wind power and solar PV have increased their share in the European and North American regions. Therefore, with green ammonia production, renewable energy can be stored and reused for power generation at consumption points. This will make renewable energy generation more efficient and usable for the long-term. There by, creating growth opportunities for Green Ammonia Market.
SOE technology is an upcoming technology for green hydrogen systems. The SOE process is used to produce green hydrogen from surplus electricity generated from renewable sources. This green hydrogen is further synthesis in ammonia synthesis unit to produce green ammonia. Furthermore, 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. Moreover, increasing demand for fuel cells boost the demand for solid oxide electrolyzers. There by acting as a driving force for the Green Ammonia Market during the forecast period.
Europe is likely to emerge as the largest region of Green Ammonia Market. The government of the Netherlands considers green hydrogen to be essential for achieving its energy transition goals and maintaining energy-intensive industries to improve the business climate for green hydrogen in the country. As per the Climate Agreement, the Netherlands will launch a national hydrogen program, which will primarily focus on unlocking the supply of green hydrogen, developing the necessary green hydrogen infrastructure, and reducing production costs of green hydrogen projects. Also, the program aims to achieve 3GW to 4GW of installed electrolyzer capacity by 2030, with additional growth of renewable electricity. Such initiatives and developments are expected to bolster the growth of the Green Ammonia Market in Europe during the forecast period.