HYDERABAD, India, Aug. 22, 2025 /PRNewswire/ -- According to DataM Intelligence study, "The Blue Ammonia Market size was US$ 216.7 million in 2024 and is expected to reach US$ 6,225.0 million in 2032 growing at a CAGR of 51.6% during the forecast period (2025-2032)".

The blue ammonia market growth is fueled by increasing commitments to reduce greenhouse gas emissions, with countries and industries adopting blue ammonia as a bridge solution to achieve sustainability goals. For instance, Japan and South Korea, two energy-import-dependent nations, are actively developing infrastructure to import blue ammonia to decarbonize their energy systems. Japan, in partnership with Saudi Aramco and SABIC, imported 40 tons of blue ammonia for co-firing in power plants, showcasing its early adoption in energy transitions.

North America is emerging as a leading hub for blue ammonia production, driven by abundant natural gas reserves, advanced CCS infrastructure, and supportive policies. The United States, leveraging the Inflation Reduction Act (IRA), offers significant tax incentives for CCS projects, making blue ammonia production economically attractive. Companies like CF Industries and ExxonMobil are investing in large-scale blue ammonia projects, including a US$ 200 million plant in Louisiana, which aims to meet domestic and export demands.

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Impact of Carbon Capture Technology Advancements on the Blue Ammonia Market

Blue ammonia relies on capturing and storing the carbon dioxide (CO2) generated during production, ensuring a low-carbon footprint while utilizing existing natural gas resources.

Innovations in carbon capture technologies have improved efficiency, reduced costs, and expanded the scalability of these systems, making blue ammonia a competitive and sustainable solution.

Modern carbon capture technologies, such as advanced solvent-based systems and solid sorbents, significantly enhance the ability to trap CO2 during ammonia production. For example, Shell's CANSOLV technology has demonstrated high efficiency in capturing CO2 from industrial processes, reducing emissions while maintaining production output. These advancements ensure that blue ammonia can be produced at scale without imposing excessive costs on producers.

The development of integrated carbon capture and storage (CCS) projects further drives the market by providing practical and commercial solutions for CO2 management. Facilities like Norway's Longship project and the UAE's Al Reyadah initiative are pioneering large-scale CCS implementation. These projects serve as proof-of-concept models, demonstrating how captured CO2 can be safely transported and stored, facilitating the growth of blue ammonia production.

Moreover, research into utilizing captured CO2 rather than merely storing it opens additional opportunities for blue ammonia.

For instance, CO2 captured during ammonia production can be converted into useful by-products such as synthetic fuels or carbonates, providing additional revenue streams and increasing the economic appeal of blue ammonia projects.

The declining cost of carbon capture systems also plays a pivotal role. In the U.S., the Petra Nova project showed that advancements in capture technology could bring down operational costs, enhancing the commercial viability of blue ammonia. Similarly, Japan and Australia's hydrogen and ammonia collaborations leverage cutting-edge CCS systems to optimize production for export markets.

Declining Renewable Energy Costs Favor Green Ammonia Over Blue Ammonia

Competition from green ammonia significantly restrains the blue ammonia market, as green ammonia offers a fully carbon-neutral production process by utilizing renewable energy and water electrolysis, avoiding the need for fossil fuels and carbon capture systems.

With the declining costs of renewable energy and increasing global emphasis on sustainability, green ammonia is becoming a more attractive alternative for industries and governments, particularly in regions with abundant renewable energy resources.

One of the primary challenges is the growing competitiveness of green ammonia in terms of production costs. Renewable energy prices, particularly for solar and wind, have dropped significantly in the past decade.

For example, the International Renewable Energy Agency (IRENA) reports that the cost of solar photovoltaic power decreased by 85% between 2010 and 2022. This reduction has made green ammonia production increasingly cost-effective in countries like Australia and Chile, where large-scale green ammonia projects, such as Fortescue Future Industries' green hydrogen and ammonia initiative, are being developed.

These projects are leveraging low-cost renewable power to produce green ammonia, creating a strong competitive edge over blue ammonia.

Thus, the competition from green ammonia, driven by declining renewable energy costs, policy preferences for carbon-neutral technologies, and significant investments in green ammonia projects, restrains the blue ammonia market.

Decarbonization Goals and Strategic Alliances Fuel Asia-Pacific Blue Ammonia Growth

Asia-Pacific Blue Ammonia market is growing at a CAGR of 62% from 2025 to 2032. Driven by a growing interest to renewable energy initiatives and industrial decarbonization efforts throughout the region. Prominent nations such Japan, South Korea, and Australia lead in blue ammonia production, utilizing their huge natural gas reserves and sophisticated technologies, notably carbon capture and storage (CCS).

Governments are progressively implementing laws and incentives to diminish carbon footprints and advance clean energy technologies. Japan has pledged to attain carbon neutrality by 2050, with ammonia identified as a crucial element of its decarbonization strategy. Consequently, Japan is investigating ammonia as a viable alternative energy source, specifically for power generating and maritime fuel applications. Australia is investing in blue ammonia to reduce greenhouse gas emissions, especially in the energy and transportation industries.

China, a significant regional actor, has concentrated on renewable ammonia production owing to its poor proficiency in carbon capture and storage technologies and dependence on coal. In 2022, China's low-emission ammonia manufacturing predominantly focused on renewable ammonia, generated through electrolysis fueled by renewable energy sources.

The nation's policy framework for carbon capture and storage (CCS) is inadequately developed, and its natural gas reserves are insufficient to satisfy the increasing demand for blue ammonia. Although China has launched multiple CCUS demonstration projects, only a limited number pertain to hydrogen production and blue ammonia, highlighting the obstacles it encounters in the widespread implementation of this technology.

China's recent intention to purchase blue ammonia from nations such as Saudi Arabia indicates a possible transition towards becoming an ammonia importer. Some observers argue that China will emphasize self-sufficiency in ammonia production, particularly in light of the nation's commitment to food security and its investments in port facilities to facilitate ammonia exports.

This strategy may establish China as a net exporter of renewable energy in the future, supported by substantial investments in overseas initiatives, such as a US$ 6.75 billion renewable hydrogen and ammonia facility in Egypt's Suez Economic Zone and renewable ammonia projects in Morocco and Brazil. These enterprises might fulfill China's increasing ammonia demand while enhancing its footprint in international markets.

India is playing a pivotal role in the Asia-Pacific blue ammonia sector, establishing significant partnerships to enhance ammonia production. A significant partnership between Indian Renewable Energy firm ACME and Japan's IHI entails one of the largest contracts for the sale of green ammonia from India to Japan. The collaboration, estimated at US$5 billion, entails the construction of a 1.2 MMTPA green ammonia facility in Gopalpur, Odisha. The project intends to provide 0.4 MMTPA of green ammonia in its initial phase, aiming to bolster Japan's net-zero promise. This strategic alliance is integral to India's National Green Hydrogen Mission and underscores the increasing significance of international cooperation in promoting the blue ammonia industry. The initiative signifies a transition towards establishing a resilient value chain in ammonia manufacturing, logistics, and distribution, contributing to emission reductions across many industries in Japan.

The blue ammonia market in the Asia-Pacific region is set for sustained expansion, propelled by technical breakthroughs, governmental regulations, and strategic partnerships. Countries such as Japan, South Korea, Australia, and India are investing in low-carbon solutions, which will likely establish blue ammonia as an essential element of their energy strategy as they strive to decarbonize major industries and achieve sustainability objectives. Nonetheless, obstacles such as legislative discrepancies and the advancement of CCS technology persist as impediments for the sector to fully achieve its potential.

Strategic Partnerships Strengthening Blue Ammonia Market Competition

Several prominent companies in the blue ammonium market are competing to maintain and expand their market share.

The major three companies in the blue ammonium companies hold 46% of the total market in 2024. In 2024, Yara International ASA held the majority of the market share at 17% of the blue ammonium market, followed by CF Industries Holdings, Inc. with 15%, Saudi Basic Industries Corporation (SABIC) with 14%, Saudi Arabian Oil Co. (Aramco), and BASF SE collectively captured 17% of the blue ammonia market, while other companies accounted for 37% of the market share.

Majority of the companies are expanding their presence through wide partnerships and collaborations. For instance, on June 29, 2023, BASF and Yara Clean Ammonia are partnering on a feasibility study to develop a world-scale low-carbon blue ammonia production facility with carbon capture on US Gulf Coast.

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Why Choose This Blue Ammonia Market Report

• Latest Data & Forecasts – Comprehensive, up-to-date market insights and projections through 2032, covering production, transportation, storage, and end-use applications in power generation, agriculture, and industrial sectors.
• Regulatory Intelligence – Actionable analysis of global and regional policies, carbon reduction targets, CCS incentives, hydrogen economy frameworks, and clean energy mandates driving blue ammonia adoption.
• Competitive Benchmarking – Evaluate strategies of leading players such as Yara International, CF Industries, SABIC, Aramco, and BASF, alongside emerging innovators investing in large-scale blue ammonia production.
• Emerging Market Coverage – Special focus on high-growth regions including Asia-Pacific, North America, and the Middle East, highlighting government initiatives, infrastructure investments, and cross-border trade opportunities.
• Actionable Strategies – Identify growth opportunities, leverage advancements in carbon capture and storage (CCS), optimize supply chain integration, and explore strategic alliances for maximum ROI.
• Pricing & Cost Analysis – In-depth assessment of production costs, CCS integration expenses, export-import economics, and technology-driven cost reduction trends across regions.
• Expert Analysis – Insights from industry specialists with proven expertise in clean energy, carbon capture, hydrogen-ammonia value chains, and sustainable industrial transformation.

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