PUBLISHER: The Business Research Company | PRODUCT CODE: 1465681
PUBLISHER: The Business Research Company | PRODUCT CODE: 1465681
Blue ammonia refers to ammonia derived from the conversion of natural gas into hydrogen and carbon dioxide, with the captured or utilized CO2 serving to mitigate emissions. It functions as a cleaner energy source suitable for power generation and industrial processes, while also serving as a potential medium for hydrogen transport and storage, thereby supporting the transition towards low-carbon energy systems.
The primary technologies utilized in blue ammonia production include steam methane reforming, autothermal reforming, gas partial oxidation, among others. Steam methane reforming (SMR) is a chemical process employed to generate hydrogen and carbon monoxide by reacting methane with steam over a catalyst. These products are distributed through various channels such as distribution/wholesalers, e-commerce platforms, and direct sales, catering to diverse applications including power generation, industrial feedstock, agriculture, pharmaceuticals, transportation, chemical and petrochemical sectors, among others.
The blue ammonia market research report is one of a series of new reports from The Business Research Company that provides blue ammonia market statistics, including blue ammonia industry global market size, regional shares, competitors with a blue ammonia market share, detailed blue ammonia market segments, market trends and opportunities, and any further data you may need to thrive in the blue ammonia industry. This blue ammonia market research report delivers a complete perspective on everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The blue ammonia market size has grown strongly in recent years. It will grow from $13 billion in 2023 to $13.95 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The growth observed during the historic period can be attributed to several factors, including the increased utilization of low-emission fuel, the rise in funding and incentives, the realization of the potential for a sustainable energy future, the increasing momentum towards a hydrogen economy, and its capacity to reduce greenhouse gas emissions.
The blue ammonia market size is expected to see strong growth in the next few years. It will grow to $17.6 billion in 2028 at a compound annual growth rate (CAGR) of 5.9%. The anticipated growth in the forecast period can be attributed to several factors, including the increasing global focus on hydrogen as a clean fuel option, the rising demand for blue ammonia in power generation, escalating concerns regarding climate change, expanding initiatives aimed at fostering a hydrogen-based economy, and the pressing need to mitigate greenhouse gas emissions. Key trends expected during this period encompass advancements in steam methane reforming (SMR) technology, greater adoption of advanced technologies, the establishment of technological innovations, increased availability of carbon capture technology, and rapid advancements in technological capabilities overall.
The escalating demand for low-carbon fuels is poised to drive the expansion of the blue ammonia market in the foreseeable future. Low-carbon fuels, characterized by minimal carbon dioxide emissions compared to traditional fossil fuels, are increasingly sought after due to the imperative to curtail greenhouse gas emissions and address climate change concerns. Blue ammonia, derived from the conversion of natural gas into hydrogen with captured carbon dioxide emissions, emerges as a viable low-carbon fuel solution. Recent forecasts from the International Energy Agency indicate a projected 28% increase in demand for low-carbon fuels, specifically biofuels, by 2026, reaching 186 billion liters compared to 157 billion liters in 2021. This surge underscores the driving force of rising demand for low-carbon fuels in propelling the growth of the blue ammonia market.
Key players within the blue ammonia market are spearheading innovation with solutions such as blue and green ammonia projects to fortify their market position. These projects represent a paradigm shift in ammonia production, bolstering capacity while enhancing efficiency and environmental sustainability. For instance, in October 2022, KBR Inc., a US-based engineering firm, unveiled a monumental 10,000 (metric tons per day) MTPD blue and green ammonia solution. This groundbreaking initiative leverages advanced digital technologies to deliver reliable, flexible, and scalable solutions tailored to meet the burgeoning demand for clean ammonia and hydrogen in the energy transition. The introduction of such innovative solutions underscores the growing interest in leveraging ammonia as a fuel source while integrating cutting-edge digital technologies to enhance energy efficiency and sustainability across the industry.
In December 2023, CF Industries Holdings Inc., a nitrogenous fertilizer manufacturing company based in the United States, successfully acquired Incitec Pivot Ltd.'s (IPLs) ammonia production unit for $1.675 billion. This strategic acquisition is designed to strengthen CF Industries' position in ammonia production by integrating IPL's Waggaman facility. Additionally, CF Industries commits to a supply agreement with Dyno Nobel, ensuring a reliable and steady channel for ammonia distribution. Incitec Pivot Ltd., headquartered in Australia, is a chemical manufacturing company.
Major companies operating in the blue ammonia market are Saudi Arabian Oil Group, ExxonMobil Corporation, Shell PLC, Uniper SE, Koch Industries Inc., ITOCHU Corporation, BASF SE, Siemens Energy AG, Saudi Basic Industries Corporation, Thyssenkrupp AG, Nutrien Ltd., Linde PLC, Mitsubishi Heavy Industries Ltd., Air Liquide S.A., Yara International ASA, Ma'aden, CF Industries Holdings Inc., TechnipFMC PLC, EuroChem Group AG, Sumitomo Mitsui Construction Co. Ltd., Haldor Topsoe A/S, Engie S.A., Qatar Fertiliser Company (P.S.C.), ADNOC Group, Casale S.A.
North America was the largest region in the blue ammonia market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the blue ammonia market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the blue ammonia market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The blue ammonia market consists of sales of clean energy carriers, emissions credits or carbon offsets, technology, and services for carbon capture and storage (CCS). Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Blue Ammonia Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on blue ammonia market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for blue ammonia ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The blue ammonia market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.