Green Ammonia Market Size, Share, Growth Analysis, By Technology(Alkaline Water Electrolysis, Proton Exchange Membrane and Solid Oxide Electrolysis), By End Use(Power Generation, Transportation), By Sales Channel(Direct sale and Indirect sale) - Industry Forecast 2024-2031

Green Ammonia Market Driver

• Globally, the quality of soil has significantly declined as a result of widespread use of chemical fertilisers and pesticides. Need for organic fertilisers is developing quickly in response to the growing demand for sustainable agricultural practises that reduce risk generation and carbon emissions. Important agrochemical producers are being compelled by this to change their preference for green and sustainable goods like green ammonia. Thus, increased demand for environmentally friendly fertilisers to lessen environmental risks and pollution is anticipated to drive up green ammonia sales throughout the forecast period.

• The key factors influencing industrial growth include the rapid expansion of end-use industries including transportation and energy generation, the implementation of stringent federal laws, and the rising acceptance of green fertilisers. A larger variety of uses in several big enterprises will also increase green ammonia sales during the next ten years. It is gaining popularity as a marine and ocean fuel in the transportation sector due to its low greenhouse gas emissions and sulphur content, which is expected to support the industry's growth.

Green Ammonia Market Restraint

• Green ammonia plants' high capital requirements are now the main barrier to the market expansion. Natural gas or coal are the primary operational costs in the manufacturing of ammonia, accounting for 75% of the plant's running expenses. The expense of electrolyzers raises operating costs in a green ammonia factory. Therefore, these plants are not cost-effective for small-scale production due to their greater capital intensity.

• Additionally, a lack of understanding of green ammonia, the tools needed to make it, and other things may also impede market growth.