Green Ammonia opportunities: Pathway to carbon neutrality

Green Ammonia opportunities: Pathway to carbon neutrality
“Green ammonia” is a term increasingly resonating in the energy industry, mainly driven by the global efforts to reduce carbon emissions over the coming decades. Whereas 1 ton of conventional ammonia emits 2 tons of CO2, production of green ammonia would see it produced from renewable energy sources, emitting zero carbon.
Ammonia is an essential global commodity with current global production at approximately 180 million tons/year with ~80% of it being used to produce synthetic nitrogen fertilizers. However, a range of new applications which are currently being explored for green ammonia could see demand for ammonia rise to a multi-billion ton market, such as, its usage as a zero-carbon fuel in the maritime sector, for stationary power generation, and as a carrier for hydrogen transportation.
Widespread use of green ammonia in these applications will require significant fresh investment in production, logistics and transportation infrastructure. There are no large-scale green ammonia plants operating today. According to our proprietary energy database and analysis, as of February 2023, total planned capacities of potential clean ammonia producers in and around Europe is estimated at ~66 MT/annum (Fig 1).

Fig 1: Announced renewable ammonia projects, as of February 2023

However, most of these announced green ammonia production plants are expected to come online between 2026 – 2028. Of these, currently, 40% of these plants are at the project stage of Feasibility studies/Approvals/Permits, followed by 18% at FEED stage (Fig 2).

Fig 2: Announced renewable ammonia projects status, as of February 2023

In terms of demand and supply gap, with Europe as an example, total demand in Europe by 2030 for green ammonia would be ~118 million tons while the announced green ammonia production capacity in and around Europe during the same time is 66 million tons. Hence, there is a clear gap of 52 million tons in terms of supply capacity.

Schlegel und Partner, with its extensive experience in the energy industry, is well positioned to help industry players, such as green ammonia producers or customers, to understand the challenges and trends. Additionally, our experts can help you to identify collaboration opportunities along the value chain as well as identify channels for marketing. If you are interested as a potential offtaker for green ammonia or would like more information, please contact:

Are you interested in further information?
Please do not hesitate to contact us:

Thorsten Leupold, phone: +49 6201 9915 16, email id: Thorsten.Leupold
Aayushi Sinha, phone: +49 6201 9915 18, email id:

© Schlegel und Partner 2023