Ammonia (NH₃), a simple molecule of nitrogen and hydrogen, is far more powerful than it appears. Often associated with fertilizers, ammonia today stands at the intersection of agriculture, industry, and clean energy. As nations aim for sustainable growth, ammonia’s versatility and potential as a carbon-free fuel are driving its resurgence in global markets.
According to recent research, the global ammonia market was valued at US$ 79.9 Bn in 2024. It is projected to grow at a CAGR of 4.7% between 2025 and 2035, reaching approximately US$ 131.8 Bn by 2035. This growth trajectory is supported by rising fertilizer demand, technological innovation, and increasing investment in green ammonia projects aimed at decarbonizing heavy industries.
The Heartbeat of Agriculture
For decades, ammonia has been the backbone of global agriculture. It serves as the key raw material for nitrogen-based fertilizers such as urea, ammonium nitrate, and ammonium sulfate—compounds essential for improving crop productivity. Nearly 70% of all ammonia produced worldwide goes into fertilizer manufacturing, underscoring its vital role in ensuring global food security.
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As the global population continues to expand, food production needs to increase substantially. The United Nations estimates that by 2050, agricultural output must grow by nearly 50% to feed the projected population of 9.7 billion. Ammonia-based fertilizers will remain critical to meeting this challenge, especially in regions such as Asia, Africa, and South America, where agricultural modernization is accelerating.
Moreover, the demand for sustainable farming practices is driving innovation in fertilizer application. Precision agriculture technologies and balanced fertilizer programs are being adopted globally to enhance efficiency and reduce environmental pollution caused by nutrient runoff. This trend is reshaping how ammonia-derived fertilizers are produced and applied, ensuring better yield with minimal ecological footprint.
Industrial Powerhouse Beyond Agriculture
Ammonia’s utility extends well beyond the farm. It plays a crucial role in the chemical, textile, pharmaceutical, and refrigeration industries. It serves as a feedstock for the production of nitric acid, explosives, plastics, and synthetic fibers.
In the energy and environmental sectors, ammonia is increasingly used for emissions control. It is a key reagent in selective catalytic reduction (SCR) systems, which remove harmful nitrogen oxides (NOx) from industrial exhausts. As environmental regulations tighten globally, demand for ammonia in emission-reduction technologies is expected to surge.
Additionally, ammonia’s role in refrigeration is gaining renewed attention. Due to its high energy efficiency and lack of ozone-depleting potential, it is being adopted in industrial refrigeration systems, particularly in food storage, beverage production, and chemical manufacturing facilities.
The Rise of Green Ammonia: Powering the Future
The most transformative development in the ammonia industry is the rapid emergence of green ammonia. Conventional ammonia production relies on natural gas or coal, which emits significant amounts of carbon dioxide. Green ammonia, however, is produced through a process powered by renewable energy—specifically, using hydrogen derived from water electrolysis instead of fossil fuels.
This innovation positions ammonia as a carbon-free energy carrier and a cornerstone of the global hydrogen economy. Green ammonia can be used to store and transport hydrogen more easily than in its gaseous form. It can also be directly combusted in gas turbines or used in fuel cells without producing carbon emissions.
Several major economies, including Japan, Australia, Saudi Arabia, and Norway, are heavily investing in green ammonia infrastructure. Japan, for instance, plans to use ammonia as a co-firing fuel in thermal power plants to reduce carbon emissions. Australia is developing large-scale green ammonia export projects, leveraging its abundant solar and wind energy resources.
As global decarbonization efforts accelerate, green ammonia is emerging as a promising alternative to fossil fuels in shipping, power generation, and industrial heating applications.
Regional Landscape: Shifting Centers of Production
The Asia Pacific region dominates the ammonia market, accounting for the largest share in both production and consumption. China and India are the leading producers, driven by robust agricultural demand and government-backed fertilizer programs.
North America remains a key exporter due to its low natural gas prices and well-established production facilities. The U.S. is also becoming a hub for low-carbon ammonia projects integrating carbon capture and storage (CCS) technologies.
Europe, on the other hand, is spearheading green ammonia innovation. Countries like Germany, the Netherlands, and Spain are developing renewable energy-powered ammonia plants to align with the European Union’s climate neutrality goals.
Meanwhile, the Middle East and Africa are emerging as global players in ammonia exports. Nations such as Oman, Morocco, and Saudi Arabia are building world-scale ammonia plants that focus on green production and export opportunities to Europe and Asia.
Key Players and Strategic Initiatives
Leading companies driving the ammonia market include Yara International ASA, CF Industries Holdings, Inc., Nutrien Ltd., BASF SE, SABIC, and OCI N.V.. These players are actively investing in sustainability, digitalization, and strategic partnerships with renewable energy developers.
Many of these companies are exploring hybrid production models, combining traditional and green ammonia production, to balance efficiency with emission reduction. Investments in carbon capture, renewable hydrogen integration, and technological innovation are shaping the next generation of ammonia plants worldwide.
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