The Global Blue Ammonia market is predicted to reach USD 21.01 million in 2024 and USD 27.20 million by 2029, growing at a CAGR of 5.3% during the forecast period.
The blue ammonia market is steadily gaining traction to reduce carbon levels released by fossil fuel-based ammonia manufacturing through autothermal reforming or stream methane reforming, capturing discharges via CCUS is important. Absorption technologies such as amine-based scrubbing are well positioned and established to capture rich carbon dioxide process channels, but technologies for reducing dilute fields require further development. Manufacturing blue ammonia causes a surge of 40 per cent in production expenses. Presently, about 1 per cent of the making is blue ammonia, with an intended capacity of around 40 MT.
The prospective function of helping technologies such as biomass gasification and methane pyrolysis in low-release ammonia production continues to be unknown because of the technical issues including low purity of hydrogen and biomass accessibility. Methane pyrolysis is likely to be industrially ready by 2025, but the preparedness of biomass gasification is not clear.
The mounting necessity for blue ammonia is propelled by the growing awareness of hydrogen as energy and ammonia works as a suitable movable means for its storage. With hydrogen providing green combustion and zero carbon discharge, it can originate from ammonia for uses such as fuel cells in automobiles. Moreover, the market growth is supported by the increasing demand for low-carbon fuels over the varied sectors, solving difficulties regarding weather change and seeking to mitigate greenhouse gas release. Recent advancements in gas generation and liquefied natural gas link-up have entitled sectors to expand blue ammonia manufacturing, complying with worldwide goals to shift apart from carbon-based energies.
Another factor pushing forward the market growth is the use of existing infrastructure due to strategic dependence. Companies continue to utilise and maximise their existing commercial infrastructures for manufacturing and delivery of carbon-efficient chemicals. This method provides double benefits involving functionally productive and affordable.
Exorbitant expense is restraining the blue anomia market. This is one of the prime issues preventing its commercialisation. Various elements add to the steep price including the astronomical cost of CCS, natural gas and transportation. The heightened expenditure associated with carbon capture and sequestration is elevated because it is a newer technology. Likewise, Europe encounters special problems, especially regarding the high cost of making blue ammonia. This is due to the inflated natural gas rates. Despite these obstructions, Europe continues to be a key player, coordinating measures with strict environmental laws and sustainability criteria.
The 2050 goal for net-zero fuel blend requires lowering the share of fossil fuel to about 30 per cent from 99 per cent. It presents a long-term opportunity for the blue ammonia market expansion. This shift can be mainly attained by reducing the carbon levels from the hydrogen intake which can be done either via electrolysis-based or CCUS-based blue hydrogen. Therefore, this leads to a major prospective of a 93 per cent decline in accumulated discharge by 2050. To realize net zero or carbon neutrality, these avenues must be augmented by methane pyrolysis or biomass-based ammonia production.
Comprehensive security guidelines and protocols for commercial operations and health risks are derailing the growth of the blue ammonia market. It is a poisonous gas so its long contact with a greater density of ammonia can cause harm to health or can even lead to death. Furthermore, grand-scale burning of ammonia can release NOx and N2O. Hence, the effects of its application as energy on air quality and ecology need further study and investigation.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
5.3% |
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Segments Covered |
By Manufacturing Process, End-User Industry, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview of Investment Opportunities |
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Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa |
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Market Leaders Profiled |
CF Industries Holdings Inc, EuroChem Group AG, Aramco, Yara International ASA, Equinor ASA (Norway), OCI (UK), CF Industries Holdings, Inc. (US), Linde plc (Ireland), QATAR FERTILISER COMPANY (QAFCO) (Qatar), ADNOC Group (UAE), Ma’aden (Saudi Arabia), PAO NOVATEK (Russia), Shell (England), Tecnicas Reunidas S. A. (Spain), ExxonMobil Corporation (US), ITOCHU Corporation (Japan), LSB Industries (US), and others |
The Steam methane reforming segment captured a significant portion of the blue ammonia market. The segment’s market growth is propelled by its affordable, expandability and established facilities. SMR is extensively utilized in the ammonia industry, and the advantage of the current understanding to provide a smoother incorporation into manufacturing procedures, making it attractive to industries wanting efficiency and dependable low-carbon solutions.
However, auto-thermal reforming is becoming more important as an attractive option for future blue hydrogen initiatives, especially when flawlessly incorporated into carbon capture removal technology. The production of blue hydrogen is gaining popularity, with announcements of massive projects, investments and state assistance globally. Apart from this, Air Liquide, Johnson Matthey (JM) and Topsoe are the major auto thermal reformers and process or production technology companies which are patented and are alluring for upcoming blue hydrogen facilities or factories. This is elevating the segment’s market share because these technologies are attractive to project contractors because of their innovative designs.
The industrial feedstock segment is likely to advance at a higher pace over the estimation period. The fertilizers sector is among the biggest sources of carbon dioxide discharges and the application of blue ammonia could aid in reducing these GHG releases while still fulfilling the need for fertilizers. Governments and food organizations around the world are supporting the demand for environment-friendly fertilizers, which are believed to be steadily adopted to decrease discharges from the agriculture industry.
With the soaring need for this, there is a strong prospect of building more projects in the region and worldwide. Policies and guidelines are also imposed to accelerate research and development activities and promote the application of green fuels for energy. Moreover, this hold over the market can be due to the forward-thinking strategies of prominent industry players in this area who are actively committed to the advancement of several facilities for blue ammonia manufacturing. Likewise, on February 6, 2023, Linde announced the signing of a lasting agreement to deliver ecologically friendly hydrogen and different industrial gases to OCI's costly blue ammonia factory located in Beaumont, Texas.
Especially Japan has risen as a dominant player in the electronics sector, mostly because of its significant efforts in developing connector technologies. In comparison to other countries, Japan has persistently attained impressive progress in ammonia acquirement technology via comprehensive, prolonged development projects, leading to multiple benefits.
The advancement of the carbon capture and storage (CCS) sector is supported by emissions trading systems (ETS) and others of similar type, favorable laws, and massive investments in CCS equipment.
CF Industries Holdings Inc, EuroChem Group AG, Aramco, Yara International ASA, Equinor ASA (Norway), OCI (UK), CF Industries Holdings, Inc. (US), Linde plc (Ireland), QATAR FERTILISER COMPANY (QAFCO) (Qatar), ADNOC Group (UAE), Ma’aden (Saudi Arabia), PAO NOVATEK (Russia), Shell (England), Tecnicas Reunidas S. A. (Spain), ExxonMobil Corporation (US), ITOCHU Corporation (Japan), LSB Industries (US) are some of the notable companies in the global Blue Ammonia market.
By Manufacturing Process
By End-User Industry
By Region
Frequently Asked Questions
The key drivers include the growing demand for sustainable agricultural practices, increased focus on reducing carbon footprints, government regulations encouraging low-emission technologies, and the rising interest in hydrogen as a clean energy source, where ammonia can be used as a carrier.
The market faces challenges such as high production costs, the need for significant infrastructure investment for carbon capture and storage, regulatory hurdles, and competition from green ammonia. Additionally, the market must address concerns about the long-term storage and safety of captured carbon.
The future outlook is positive, driven by increasing global demand for low-carbon solutions, advancements in CCS technologies, and growing investments in sustainable energy. As governments and industries continue to push for carbon neutrality, the demand for blue ammonia is expected to rise.
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