PUBLISHER: The Business Research Company | PRODUCT CODE: 1681972
PUBLISHER: The Business Research Company | PRODUCT CODE: 1681972
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 $13.95 billion in 2024 to $14.93 billion in 2025 at a compound annual growth rate (CAGR) of 7.0%. The growth in the historic period can be attributed to increased use of low-emission fuel, the increase in funding and incentives, scope of sustainable energy future, increasing moves towards a hydrogen economy, its potential to cut greenhouse gas emissions.
The blue ammonia market size is expected to see strong growth in the next few years. It will grow to $18.55 billion in 2029 at a compound annual growth rate (CAGR) of 5.6%. The growth in the forecast period can be attributed to increasing worldwide emphasis on hydrogen as a clean fuel option, growing demand for blue ammonia to generate power, growing concerns about climate change, growing initiatives aimed at bolstering the hydrogen-based economy, the imperative to reduce greenhouse gas emissions. Major trends in the forecast period include increased technology of steam methane reforming (SMR), increased usage of advanced technologies, establishing technological innovations, increased availability of carbon capture technology, rapid technological advancements.
The growing need for low-carbon fuels is expected to drive the expansion of the blue ammonia market in the coming years. Low-carbon fuels generate significantly fewer carbon dioxide emissions than conventional fossil fuels, helping to reduce the impact on global warming and climate change. The demand for these fuels is rising as the world focuses on cutting greenhouse gas emissions and addressing climate change. Blue ammonia is produced by converting natural gas into hydrogen while capturing the carbon dioxide emissions, making it an effective low-carbon fuel. For example, in January 2024, the International Energy Agency, based in France, reported that biofuel demand is projected to grow by 38 billion liters between 2023 and 2028, representing a nearly 30% increase from the previous five years. Total biofuel demand is expected to rise by 23%, reaching 200 billion liters by 2028. As a result, the rising demand for low-carbon fuels is fueling 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 2024. 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 2025 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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.