Blue Ammonia Market Share is Expected to Grow at a CAGR of 5.12% by 2035 | ChemAnalyst


According to ChemAnalyst report, “Blue Ammonia Market Analysis: Plant Capacity, Production, Operating Efficiency, Demand & Supply, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2035”, The Blue Ammonia market has witnessed significant growth as its demand reached 12 million tonnes in 2020 and is expected to grow at a healthy CAGR of 5.2% in the forecast period until 2035.

The increasing utilization of Blue Ammonia by the agriculture industry as they are highly used in fertilizers is expected to flourish the Blue Ammonia market across the globe in the upcoming years. The rising demand for Blue Hydrogen as a low carbon fuel is likely to increase the demand for Blue Ammonia, which will further drive its market in the next few years. The significantly growing interest in Blue Ammonia poses an interesting challenge due to methane emissions in the natural gas supply chain and the lifecycle carbon intensity of this solution. The absence of clear regulatory guidance and certification holds the potential of possible environmental risks, and this is an issue that must be tackled by the Ammonia producers as soon as possible.

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Blue Ammonia is a conventional Ammonia for which by-product CO2 has been captured and stored, reducing climate impact as compared with other Ammonia. It is a feedstock for Blue Hydrogen and a version of low-carbon fuel. Many fertilizer producers have embarked on several projects in recent years. Blue Ammonia is somewhat controversial and in need of industry standards. Ammonia is widely used for an array of industrial applications, including transportation and shipping, power generation, and industries including steel, cement, and fertilizer production, and others. With the growing interest in hydrogen as a fuel, Ammonia has become an easily transportable way to store it. Hydrogen, a clean-burning fuel that has zero carbon emissions, can be obtained by reconverting Ammonia into gas to use in applications such as fuel cells for cars.

Blue Ammonia Market is segmented on the basis of technology, end-use, sales channel, and region. On the basis of technology, the market is divided into Steam Methane Reforming (SMR) and Auto Thermal Reforming (ATR). The true Carbon Capture and Storage (CCS) based Blue Ammonia production must be based on >90% of Carbon capture. The production of Blue Ammonia via the Steam Methane Reforming (SMR) method is inexpensive and quite easy to capture and represents 50-70% of an ammonia plant’s CO2 emissions. Whereas Auto Thermal Reforming (ATR) process allows over 90% Carbon capture. ATR technology is expected to bolster the Blue Ammonia market in the next few years since ATR, despite lower efficiency, allows the recovery of a much higher percentage of process CO2 emissions as compared with SMR. Based on several end-uses, the Blue Ammonia market is segmented into fertilizer, wastewater treatment, industrial power heating, transportation, and others. The fertilizer segment is expected to dominate the Blue Ammonia market in the forecast period owing to the increased demand from the downstream agriculture industry.

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Due to a number of investments in the Gulf countries regarding blue and green hydrogen, Blue Ammonia could become a viable fuel source for the future. In gas-rich regions such as North America, the Middle East, and Russia, the demand for Blue Hydrogen is continuously growing as it keeps on adding value to low cost and abundant gas reserves, which is further driving the demand for Blue Ammonia. Several projects related to Blue-Ammonia have been announced in different regions, especially in the Middle East. Similar to Blue Hydrogen, it is projected that Blue Ammonia will become a stepping stone toward a carbon-free product in the next few years.

In 2020, the unprecedented outbreak of COVID-19 caused the Blue Ammonia market to witness a downward trajectory around the globe. The imposition of strict restrictions and nationwide lockdowns by the government authorities in several countries affected the supply chain of Blue Ammonia across the world. Due to the halt in transportation activities, several end-use industries observed a drastic decline due to the unavailability of the product. Amidst the looming concern, the demand for fertilizers from the downstream agriculture industry remained sturdy during the covid times.

Among different regions, the Middle East African region is forecasted to dominate the Blue Ammonia market across the globe in the next ten years owing to the multi-billion dollar projects in the region. Abu Dhabi National Oil Company (ADNOC) announced on 24th May 2021 that it would boost the “blue” ammonia production facility in Ruwais, Abu Dhabi, in UAE. The growing demand for fuel Ammonia in regions including North America and Russia will augment the Blue Ammonia market in the future.

Blue Ammonia Market Analysis: Plant Capacity, Production, Operating Efficiency, Demand & Supply, Application, End Use, Distribution Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2035”, some of the major players operating in Blue Ammonia market include CF Industries, Nutrien, Jinmei Group, Yihua Group, PetroChina Group, Qatar Fertilizer Co (QAFCO), Yara, EuroChem Group, TogliattiAzot, Yangmei Group, Acron Group, and Others.

“Rapidly growing demand for fertilizers from the blooming Agriculture industry is likely to boost the Blue Ammonia market in the forecast period until 2035. Due to the spread of COVID-19, there was a halt on transportation activities due to which the supply of Blue Ammonia got restricted amidst the strong demand across the globe. As several million dollar projects are lined up in gas rich regions including Middle East and North America in regards to Blue Ammonia, it is likely to drive the market in the span of the next ten years.” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based management consulting firm promoting ChemAnalyst worldwide.

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