Blue Ammonia Market Size, Share and Trends 2024 to 2034

Blue Ammonia Market Size and Forecast 2024 to 2034

The global blue ammonia market size is anticipated to reach around USD 80 million by 2034 from USD 16,499.72 million in 2024, at a CAGR of 62.33% from 2024 to 2034. The increasing focus on sustainable agriculture is fueling the blue ammonia market growth.

Blue Ammonia Market Key Takeaways

• North America dominated the global blue ammonia market in 2023.
• Asia Pacific is expected to register the fastest growth during the forecast period.
• By technology, the auto thermal reforming (ATR) segment held the largest market share in 2023.
• By technology, the Haber Bosch process segment is expected to register the fastest growth during the forecast period.
• By manufacturing, the steam methane reforming (SMR) segment held the largest market share in 2023.
• By distribution channel, the distribution/wholesalers segment held a significant share of the market in 2023.
• By application, the fuel segment held the largest share of the market in 2023.
• By application, the energy storage segment is expected to register the fastest growth during the forecast period 2024 to 2033.
• By end-user, the power-generating segment held the largest share of the market in 2023.

Market Overview

Blue ammonia refers to a low-carbon method of producing colorless gas with a pungent odor. Hydrogen is derived from carbon dioxide as a byproduct, which is stored and then combined with nitrogen, resulting in the formation of ammonia. Blue ammonia is used in the industrial sector as a chemical, and it is also used in agriculture as a fertilizer. The various properties of blue ammonia also make it a convenient option for use in pharmaceuticals, refrigeration, and cleaning products. Multiple sectors are considering blue ammonia as a potential option due to the increasing demand for sustainable products that would help reduce carbon footprints. The growing relevance of blue ammonia as a low-carbon alternative is expected to drive the overall growth of the blue ammonia market.

Blue Ammonia Market Growth Factors 

• Increasing focus on developing sustainable agricultural production is leading to the growth of the blue ammonia market.
• The rapid adoption of clean energy is resulting in a greater demand for blue ammonia as a low-carbon fuel, fueling the growth of the blue ammonia market.
• Increasing global awareness regarding sustainability is leading industrial companies to stick to eco-friendly options, resulting in a growth factor for the blue ammonia market.
• Initiatives by various international organizations are standing as a strong indicator of sustainable practices, especially in the agricultural sector, which is fueling the growth of the blue ammonia market.

How is Artificial Intelligence Revolutionizing the Sustainable Fuel Market

Implementation of AI in chemical manufacturing, processing, and data extraction is enabling the researchers to study performance parameters effectively. AI algorithms help in the prediction and classification of target molecular structures such as molecular properties, chemical structures, and their responsiveness. These databases are then used to analyze the chemical components for experimentation or investigation with the help of AI-driven drug discovery platforms. Low-emission fuel sources address environmental sustainability concerns with the reduction of greenhouse gas emissions through AI-driven process modelling which helps in better catalyst design, and overall process optimization.

• In June 2024, Argus announced the launch of Japan Korea Low-Carbon Ammonia Benchmark (JKLAB) which is essentially helpful to the North-East Asian companies dealing with the trading of low-carbon ammonia. It has reported an index focusing on the mass production of low-carbon ammonia and its cost-effectiveness.

Market Scope

Market Dynamics

Drivers

Growing demand for low-emission fuels

The development of blue ammonia through CCS technology reduces CO2 emission, which is considered one of the biggest growth factors in the blue ammonia market. The greenhouse gas (GHG) effect is one of the biggest concerns in today’s world, which leads to climate change, destruction of soil, and many other things. It is also being considered a reliable option for industries like steel, cement, and chemicals that are looking for low-emission fuels. The use of blue ammonia in transportation and shipping is also considered to be effective in reducing carbon footprints and fueling the growth of the market.

• In November 2023, Hoegh Autoliners and Yara Clean Ammonia partnered to supply clean ammonia for aurora class vessels. The partnership aims to advance towards zero-carbon solutions in the shipping industry.

Increasing sustainable initiatives

The increasing pollution through vehicles, industries, and many other factors has led to increasing tension regarding the environment. Many governments and organizations like the United Nations (UN) are focusing on adopting sustainability through sustainable development goals, which include the emission of GHG from multiple industries.

These goals are leading the nations to adopt low-emission carbon technologies like blue ammonia, which helps reduce GHG emissions as it is a low-carbon product produced using natural gas. Governments are investing in the development of blue ammonia through research and development. They are also incentivizing manufacturers to adopt these technologies, which would maintain the sustainability of the regulations and boost the growth of the blue ammonia market.

Restraint

Higher costs associated with technologies

The blue ammonia market has shown significant progress in the past few years, but there are still some factors that tend to restrain the market growth. Technologies like Carbon Capture and Storage (CCS) are higher in cost due to their complexity in designs, which limits the deployment and increases the costs. These higher costs restrict the production of blue ammonia, which also increases its cost. Many governments are focusing on improving the infrastructure, which would help store and transport blue ammonia; this would help boost the growth rate of the market.

Opportunities

Focus on Technological advancements

The increasing demand for the blue ammonia market has also resulted in the demand for production and effective solutions. These factors are leading to the improvement of several technologies like the CSS, which can reduce carbon emissions. Companies like Johnson Matthey are focusing on projects with LCH technology for hydrogen production and also partnering with other companies for sustainable ammonia production. These technological advancements would also help in expanding the market growth and leading to reducing the overall costs of blue ammonia.

Increasing partnerships and agreements

The ongoing sustainability initiatives by governments also open the door for many partnerships between companies to improve the efficiency of the blue ammonia market in multiple regions. Technology providers are focusing on expanding blue ammonia by partnering with distribution channels.

• In July 2024, Wuhuan Engineering selected KBR’s purifier ammonia technology for the EL Nasr company’s fertilizer in Oman. The partnership aims to enhance the efficiency and sustainability of ammonia production.

Technology Insights

The auto thermal reforming (ATR) segment held the largest share of the blue ammonia market in 2023. This is a process that turns natural gas into hydrogen fuel. The process mixes natural gas with steam, which sends the mixture into the reformer and then gets combined with oxygen at a burner to generate heat in the combustion chamber. ATR technology is considered to be more popular than the traditional method as it produces hydrogen more efficiently. This also helps reduce overall operational costs with lower emissions compared to the traditional method.

• Topsoe’s SynCOR auto thermal reforming technology is helping to make significant advancements in large-scale low-carbon hydrogen production with low costs.

The Haber Bosch process segment is expected to register the fastest growth in the blue ammonia market from 2024 to 2033. It is a process that is used to produce ammonia by a reaction of nitrogen and hydrogen under high-pressure temperatures and pressure. The Haber Bosch segment is gaining significant importance due to the constant technological innovations in the methods. It is considered to be highly scalable for medium and small ammonia production of these companies, which makes it the fastest growing. The increasing focus on green technologies is expected to drive the growth of the market.

Manufacturing Insights

The steam methane reforming (SMR) segment held the largest share of the blue ammonia market in 2023. SMR is the reaction of methane from natural gas to produce hydrogen, carbon monoxide, and CO2. This method is widely used for industrial use as it is considered to be highly efficient due to its effective conversion rate. Many companies are using this to produce hydrogen as it is cheaper, giving effective solutions. There is a focus on reducing emissions, which can help this method make a significant impact and contribute to the growth of the market.

Distribution Insights

The distribution/wholesalers segment held a significant share of the blue ammonia market in 2023. The distributors and wholesalers ensure the safe delivery of ammonia as it requires robust safety throughout the entire transportation process. It has multiple storage capabilities, which helped the segment register significant shares in 2023.  The ongoing investments towards infrastructure increase the efficiency of wholesalers in managing blue ammonia efficiently.

• In November 2023, Yara International and Northern Lights signed the first cross-border CO2 transport and storage agreement.

Application Insights

The fuel segment held the largest share of the blue ammonia market in 2023. Blue ammonia is gaining significant importance as it stands out as an alternative to fossil fuels, which are already used in high quantities to produce energy. This increases the demand for blue ammonia as it can be used for various industrial purposes, including vehicles. They can also be used to generate power, which may reduce the use of coal.

• According to an EU-funded study, blue ammonia will account for the majority of marine fuel demand, which will rise from 2.3 million tonnes in 2030 to 245 million tonnes.

The energy storage segment is expected to register the fastest growth in the blue ammonia market during the forecast period 2024 to 2033. The segment is gaining significant importance as it carries hydrogen efficiently. The demand for energy storage is increasing due to technological advancements that can carry blue ammonia efficiently and boost the adoption of energy storage applications. Many countries are working towards a low, low-carbon economy, which makes blue ammonia preferable in many sectors. The rising need for renewable energy integration is expected to boost the overall growth of the market in the upcoming years.

End-user Insights

The power-generating segment held the largest share of the blue ammonia market in 2023. The increasing demand for clean fuels is leading to the opportunity for blue ammonia. Power-generating facilities use fuels significantly, which reduces emissions. Power-generating facilities use blue ammonia as a direct fuel option for equipment like gas turbines. There are many infrastructural developments for power-generating facilities that can help generate new fuels like blue ammonia. The wider adoption of these facilities will also help in reducing the overall costs. The rising adoption is also considered to drive the overall growth of the market.

Regional Insights

North America dominated the global blue ammonia market in 2023. The growth of the region is attributed to the highly established infrastructure in countries like the United States. The country is constantly focusing on advancing CCS technology, which will increase the production of blue ammonia and meet sustainability standards.

Additionally, the U.S. government is investing heavily in research and development to improve technologies like SMR and ATR, and the Canadian government is providing incentives to promote clean energy. Both countries, the U.S. and Canada, aim to reach zero net emissions by 2050, which will open many opportunities for new companies and lead to the growth of the blue ammonia market.

Asia Pacific is expected to register the fastest growth in the blue ammonia market during the forecast period. The rapid industrialization in countries like China and India is one of the major growth factors. These countries have increased the demand for clean energy options due to the increasing populations, especially in India. India is focusing on lowering emissions by implementing several policies that may help the market players contribute to the growth of the market. Countries like Japan are focusing on technological advancements that will improve the overall infrastructure for clean energy facilities.

Blue Ammonia Market Companies

• Air Liquide S.A.
• Yara International ASA
• Ammonia Casale S.A.
• CF Industries Holdings, Inc.
• thyssenkrupp AG
• Haldor Topsoe A/S
• Linde ple
• Mitsubishi Heavy Industries, Ltd
• Siemens Energy AG
• TechnipFMC ple

Recent Developments

• In July 2024, the Port of Beaumont and Jefferson Energy Companies announced a $382 million bond issuance for the development of a blue ammonia facility.
• In February 2024, OCI and Linde announced a partnership for Linde to supply clean hydrogen and nitrogen to OCI’s new blue ammonia facility in Beaumont, Texas, with a total investment of $2.8 billion and operations expected to start in 2025.
• In September 2023, BP and Pertamina signed an MoU to explore blue ammonia production and increased LNG supply at the Tangguh plant in Indonesia, including a study on carbon capture and storage.
• In December 2023, Centrica and Mitsubishi Power Europe announced plans to build Europe’s first ammonia-fueled power plant in Ireland, aimed at reducing emissions and demonstrating low-carbon ammonia technology.

Segments Covered in the Report

By Technology

• Autothermal Reforming (ATR)
• Haber Bosch Process

By Manufacturing Process

• Thermochemical Process
• Steam Methane Reforming (SMR)
• Electrochemical Process

By Distribution Channel

• Distributors/wholesalers
• E-commerce
• Direct Sale

By Application

• Fuel
  • Polymers
  • Fertilizers
  • Power Generation
  • Pharmaceuticals
• Energy Storage
  • Renewable Energy Integration
  • Grid-Scale Energy Storage

By End-user

• Power Generation
• Automotive
• Chemical & Petrochemicals
• Pharmaceuticals
• Agriculture

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa