The Blue Ammonia Market Size was valued at USD 332.3 Mn in 2023 and is predicted to reach USD 4,558.3 Mn by 2031 at a 39.2% CAGR during the forecast period for 2024-2031.
Blue ammonia, produced from low-carbon hydrogen and nitrogen, is gaining traction as a sustainable energy carrier due to its reduced carbon emissions. The market for blue ammonia is growing as industries seek cleaner alternatives to traditional ammonia production methods. Collaboration between governments, industries, and investors is crucial for further development and adoption of blue ammonia as a viable and eco-friendly energy source. The concept of blue ammonia involves capturing the CO2 emissions generated during ammonia production and either utilizing them in other industrial processes or storing them underground, thereby preventing their release into the atmosphere. This approach not only decreases the carbon footprint of ammonia production but also contributes to carbon mitigation efforts on a broader scale.
However, the COVID-19 pandemic initially slowed the blue ammonia market due to disruptions in supply chains and delayed projects. However, recovery efforts and a renewed focus on sustainable energy have accelerated investments and development in the sector, positioning blue ammonia as a crucial component in the post-pandemic green recovery and carbon reduction strategies.
Competitive Landscape
Some of the Major Key Players in the Blue Ammonia Market are
- Yara International
- Saudi Arabian Oil Co.
- OCI
- CF Industries Holdings, Inc.
- QATAR FERTILISER COMPANY (QAFCO)
- Ma’aden
- Shell PLC
- ExxonMobil Corporation
- LSB Industries
- ITOCHU Corporation
- Técnicas Reunidas S. A.
- PAO NOVATEK
- ADNOC Group
- Linde plc
- Equinor ASA
- EuroChem Group
- Uniper SE
- Hydrofuel Canada Inc.
- Dastur Energy
- Nutrien Ltd.
- Other Prominent Players
Market Segmentation:
The blue ammonia market is segmented on the basis of technology and application. On the basis of technology, the market segments include autothermal reforming (ATR), steam methane reforming (SMR), and gas partial oxidation. On the basis of application, the market segments are transportation, power generation, and industrial feedstock.
Based on Technology, the Steam Methane Reforming (SMR) Segment is a Major Contributor to the Blue Ammonia Market.
Steam methane reforming (SMR), a cornerstone technology, facilitates the reaction of methane to produce hydrogen and carbon monoxide with steam, laying the foundation for subsequent ammonia synthesis. Widely adopted due to its efficiency and notable production capacities, SMR remains integral to the industry's operational landscape. Steam Methane Reforming (SMR) is a key process in the production of blue ammonia. It involves reacting methane with steam at high temperatures to produce hydrogen and carbon monoxide, known as synthesis gas. The carbon monoxide is then reacted with nitrogen to form ammonia. In the context of blue ammonia production, SMR is coupled with carbon capture and storage (CCS) technologies to reduce carbon emissions. This process allows for ammonia production with a lower carbon footprint, making it a promising solution for sustainable ammonia production in the future.
The Industrial Feedstock Segment Witnessed Growth at a Rapid Rate.
The industrial feedstock segment of blue ammonia involves utilizing various sources of hydrogen, such as natural gas, biogas, or other renewable sources, to produce ammonia through a process that includes steam methane reforming (SMR) or other hydrogen production methods. This segment focuses on ensuring the availability of hydrogen feedstock for the production of blue ammonia while incorporating carbon capture and storage (CCS) technologies to reduce carbon emissions. By sourcing hydrogen from diverse feedstock options and implementing sustainable practices, the industrial feedstock segment plays an important role in advancing the production of environmentally friendly blue ammonia for various industrial applications.
In the Region, the North America Blue Ammonia Market Holds a Significant Revenue Share.
The North American blue ammonia market is experiencing growth driven by increasing demand for sustainable ammonia production. Blue ammonia, produced using low-carbon hydrogen sources like natural gas with carbon capture technology, is gaining traction as a cleaner alternative to traditional ammonia production methods. The region involves focus on reducing carbon emissions and promoting environmental sustainability is fueling the adoption of blue ammonia in industries such as agriculture, energy, and transportation. With supportive government policies and investments in green technologies, the North American blue ammonia market is poised for further expansion in the coming years. Asia Pacific is projected to grow at a rapid rate in the global blue ammonia market due to growing concerns about rapid industrialization, government initiatives, and increasing funding in various industries.
Recent Developments:
- In June 2023, Yara International ASA with BASF collaborated to build a world-scale low-carbon blue ammonia production facility with carbon capture in the United States.
- In September 2021, the Japanese government announced its plan to increase the production and use of blue ammonia in the nation. This announcement marked an important turning point in the blue ammonia. In order to stimulate investment in blue ammonia production facilities, the government intends to implement tax incentives and other measures, with the goal of reaching a production capacity of 3 million tons annually by 2030.
- In July 2021, Saudi Aramco, the government-owned oil firm of Saudi Arabia, declared that it had made blue ammonia using hydrogen derived from renewable sources.
Blue Ammonia Market Report Scope
|
Report Attribute |
Specifications |
|
Market Size Value In 2023 |
USD 332.3 Mn |
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Revenue Forecast In 2031 |
USD 4,558.3 Mn |
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Growth Rate CAGR |
CAGR of 39.2% from 2024 to 2031 |
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Quantitative Units |
Representation of revenue in US$ Mn, Volume (KT) and CAGR from 2024 to 2031 |
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Historic Year |
2019 to 2023 |
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Forecast Year |
2024-2031 |
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Report Coverage |
The forecast of revenue, the position of the company, the competitive market structure, growth prospects, and trends |
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Segments Covered |
By Technology, By Application and By Region |
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Regional Scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
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Country Scope |
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil; Mexico; France; Italy; Spain; Southeast Asia; South Korea |
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Competitive Landscape |
Yara International, Saudi Arabian Oil Co., OCI, CF Industries Holdings, Inc., QATAR FERTILISER COMPANY (QAFCO), Ma’aden, Shell, ExxonMobil Corporation, LSB Industries, ITOCHU Corporation, Técnicas Reunidas S.A., PAO NOVATEK, ADNOC Group, Linde plc, Equinor ASA, EuroChem Group, Uniper SE, Hydrofuel Canada Inc., Dastur Energy, Nutrien Ltd., and other prominent players. |
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Customization Scope |
Free customization report with the procurement of the report and modifications to the regional and segment scope. Particular Geographic competitive landscape. |
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Pricing And Available Payment Methods |
Explore pricing alternatives that are customized to your particular study requirements. |
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