Green Ammonia Market in Asia-Pacific: Trends & Opportunities

“The Asia Pacific green ammonia market is experiencing rapid growth, driven by the region's increasing focus on sustainable energy and carbon reduction. Countries like Japan, South Korea, and Australia are leading the charge, leveraging their renewable energy resources to produce green ammonia. Key factors contributing to this growth include supportive government policies, investments in Green Ammonia infrastructure, and rising demand for low-carbon fertilizers and energy carriers.

However, challenges such as high production costs and infrastructure development are being addressed through technological advancements and strategic partnerships. Overall, the market is poised for significant expansion as Asia Pacific continues to advance its green energy initiatives.”

Asia Pacific Green Ammonia market was valued at USD 61.6 million in 2023 and is projected to reach USD 1,682 million by 2030, with a compound annual growth rate (CAGR) of 65% from 2024 to 2030.

The Asia Pacific green ammonia market offers significant opportunities driven by the region’s strong commitment to sustainable energy and the increasing demand for low-carbon solutions. Countries such as Japan, South Korea, Australia, and China are intensifying their efforts to combat climate change, with green ammonia emerging as a crucial component in their energy transition strategies.

First, the abundance of renewable energy resources in the region provides a significant opportunity for green ammonia production. Countries like Australia, with its vast solar and wind resources, and China, with its large-scale renewable energy projects, can efficiently harness these resources to produce green ammonia. This process involves using renewable electricity to split water into hydrogen and oxygen, with the hydrogen then combined with nitrogen to produce ammonia, offering a sustainable alternative to conventional ammonia produced from fossil fuels.

Second, the region’s focus on decarbonizing key sectors such as agriculture and shipping creates substantial demand for green ammonia. As a key ingredient in fertilizers, green ammonia can replace traditional ammonia, significantly reducing the carbon footprint of agricultural practices. Similarly, in maritime transport, green ammonia is being explored as a low-emission fuel for ships, aligning with international maritime regulations and sustainability goals.

Additionally, the Asia Pacific region is witnessing growing investment in green hydrogen infrastructure, which is integral to green ammonia production. Governments and private companies are investing in electrolyzers, storage solutions, and distribution networks, facilitating the scaling up of green ammonia projects. Strategic partnerships and joint ventures, such as those between energy companies and technology providers, are accelerating the development and commercialization of green ammonia technologies.

The increasing focus on hydrogen energy in countries like Japan and South Korea, along with supportive policies and regulatory frameworks, further enhances the market’s potential. For instance, Japan’s hydrogen roadmap and South Korea’s Green New Deal include provisions for green ammonia, driving research, development, and deployment of related technologies.

Despite these opportunities, the market must address challenges such as high production costs and infrastructure requirements. However, ongoing technological advancements and cost reductions are expected to improve the economic feasibility of green ammonia. Overall, the Asia Pacific green ammonia market is well-positioned for significant growth, driven by renewable energy resources, decarbonization goals, and strategic investments in infrastructure and technology.

Competitive Landscape

Some of the major companies operating within the Green Ammonia market are: Nel Hydrogen, Siemens Energy, MAN Energy Solutions, ThyssenKrupp AG, ITM Power PLC, Hydrogenics, Green Hydrogen Systems, McPhy Energy, Electrochaea, EXYTRON, AquaHydrex, Enapter, BASF SE, Yara International, ENGIE, Uniper, Haldor Topsoe, Starfire Energy, Queensland Nitrates Pty Ltd, Hiringa Energy and others.