Blue Ammonia Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Application (Transportation, Power Generation, Industrial Feedstock), By Technology (Steam Methane Reforming, Autothermal Reforming, Gas partial Oxidation), By Region and Competition, 2021-2031F

Market Overview

The Global Blue Ammonia Market will grow from USD 0.59 Billion in 2025 to USD 3.03 Billion by 2031 at a 31.35% CAGR. Blue ammonia is defined as ammonia produced using natural gas feedstocks where the carbon dioxide emissions generated during the process are captured and permanently stored. The market is primarily driven by the global mandate to decarbonize heavy industries, specifically maritime shipping and power generation, by utilizing a low-carbon fuel that leverages existing logistics infrastructure. According to the Ammonia Energy Association, at the conclusion of 2024, the organization tracked a global pipeline of 438.1 million tons of low-emission and transitional ammonia capacity. This significant project volume underscores the industry commitment to transitioning from unabated fossil fuel production toward sustainable alternatives.

A major challenge hindering market expansion is the high capital expenditure required for carbon capture and storage infrastructure. The economic viability of blue ammonia relies heavily on proximity to geological storage sites, and the complex regulatory frameworks governing carbon sequestration can delay project approvals and impede final investment decisions.

Key Market Drivers

Growing adoption for co-firing and clean power generation is transforming the market landscape, particularly in Asia where utilities are retrofitting coal assets to lower emissions. This application creates immediate, large-scale demand for blue ammonia as a transitional fuel that utilizes existing combustion infrastructure. According to JERA, in June 2024, the company successfully concluded a commercial trial co-firing 20% ammonia at its Hekinan thermal power station, validating the technical feasibility of this decarbonization pathway. To facilitate such capital-intensive projects, governments are stepping in with substantial financial backing. According to the Ministry of Economy, Trade and Industry, in 2024, the Japanese government introduced a 3 trillion yen support scheme designed to subsidize the supply chain of low-carbon hydrogen and ammonia, significantly de-risking investment for utility operators and fuel suppliers.

The strategic utilization of existing natural gas and industrial assets is also a critical driver, allowing resource-rich nations to produce blue ammonia at competitive costs by integrating carbon capture technologies. This approach leverages established extraction and processing infrastructure to meet rising export demand while adhering to sustainability targets. According to QatarEnergy, in November 2024, the company broke ground on a new blue ammonia plant with a capacity of 1.2 million tons per annum, supported by an investment of approximately 1.2 billion dollars. Such developments underscore the industry's shift toward monetizing hydrocarbon reserves through sustainable fuel production, effectively positioning these regions as central hubs in the global low-carbon economy.

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Key Market Challenges

The substantial capital expenditure required for carbon capture and storage infrastructure constitutes a significant barrier to the expansion of the global blue ammonia market. Developing the facilities necessary to capture, transport, and permanently sequester carbon dioxide demands heavy upfront investment, which directly impacts the commercial feasibility of production plants. This economic pressure is further intensified by the necessity for proximity to suitable geological storage sites, as the requirement to transport captured emissions over long distances introduces additional logistical costs and technical complexities that can render projects financially unsustainable.

These capital-intensive requirements create a noticeable disconnect between project announcements and actual implementation, impeding the pace of market growth. According to the International Energy Agency, in 2024, only 4 percent of announced low-emission hydrogen and ammonia projects had reached the final investment decision stage. This low conversion rate demonstrates how the financial risks associated with carbon capture technology and infrastructure development are effectively slowing the transition from planning to construction, thereby limiting the immediate availability of blue ammonia supply to meet industrial demand.

Key Market Trends

The transition to Autothermal Reforming (ATR) technology represents a critical production evolution, enabling developers to overcome the carbon capture efficiency limitations associated with conventional steam methane reforming. By concentrating carbon dioxide into a single high-pressure stream, ATR systems facilitate capture rates significantly higher than the industry standard, thereby ensuring that blue ammonia projects meet stringent low-carbon certifications and maximize eligibility for fiscal incentives. According to Technip Energies, April 2025, in the 'Blue Point Number One ATR' project announcement, the company confirmed it will deploy this advanced technology at a new facility in Louisiana to achieve a carbon dioxide recovery rate of more than 95 percent for its 1.4 million metric ton annual output. This technological shift is essential for validating the environmental credentials of blue ammonia against green alternatives, securing its role in the long-term energy mix.

Simultaneously, the market is witnessing the emergence of blue ammonia as a direct maritime fuel, driven by shipping operators hedging against future emissions regulations with dual-fuel assets. Unlike its application in thermal power generation, this trend is characterized by the immediate procurement of ammonia-capable vessels intended to utilize blue ammonia as a compliant, scalable bridge fuel until renewable supplies mature. According to DNV, February 2025, in its 'Alternative Fuels Insight' platform update, the shipping industry ordered 27 ammonia-fueled vessels in 2024, a more than threefold increase from the previous year, highlighting a rapid pivot from theoretical feasibility to commercial fleet integration. This demand creates a dedicated offtake channel distinct from utility tenders, diversifing the revenue streams for producers and reducing reliance on single-sector demand.

Segmental Insights

The Industrial Feedstock segment stands as the fastest-growing area in the Global Blue Ammonia Market due to the immediate demand for low-carbon raw materials in fertilizer and chemical production. This rapid adoption is fueled by the capacity of blue ammonia to integrate seamlessly into existing industrial infrastructure, offering a practical pathway to lower carbon footprints. Furthermore, regulatory frameworks like the European Union Carbon Border Adjustment Mechanism incentivize producers to switch from conventional ammonia to cleaner alternatives. Consequently, major industrial players are prioritizing this segment to meet stringent global sustainability mandates.

Regional Insights

Asia Pacific holds the leading position in the global blue ammonia market, driven by substantial demand for low-carbon power generation and industrial feedstock. Japan and South Korea are central to this expansion, prioritizing ammonia co-firing to reduce emissions in existing thermal power plants. Strategic initiatives by organizations like Japan’s Ministry of Economy, Trade and Industry establish robust frameworks that encourage investment in clean fuel supply chains. Additionally, the region's extensive agricultural sector ensures consistent demand for ammonia-based fertilizers, further reinforcing Asia Pacific's dominance amidst global decarbonization efforts.

Recent Developments

• In August 2024, Woodside Energy entered into a binding agreement to acquire OCI Global's clean ammonia project in Texas, United States, for a total consideration of approximately $2.35 billion. The acquisition encompasses a 1.1 million tonne per year blue ammonia facility currently under construction in Beaumont, with first production targeted for 2025. The project involves pairing ammonia production with carbon capture and sequestration services provided by ExxonMobil to achieve low-carbon intensity. This strategic investment positions the Australian energy company as an early mover in the growing global lower-carbon ammonia market.
• In July 2024, KBR announced that its proprietary blue ammonia technology was selected by Shell for the Blue Horizons low-carbon hydrogen and ammonia project in Duqm, Oman. Under the contract, the company will provide technology licensing and engineering design for a plant with a production capacity of 3,000 metric tons per day. The facility will utilize a synthesis loop to produce ammonia from hydrogen generated via steam methane reforming with carbon capture. This collaboration aims to deliver cost-competitive low-carbon ammonia to support Oman's energy transition goals and Vision 2040 targets.
• In May 2024, Tecnimont, a subsidiary of MAIRE, received a notice to proceed with construction activities for a low-carbon ammonia plant in the United Arab Emirates. The project is being developed by Fertiglobe in partnership with TA'ZIZ, Mitsui & Co., and GS Energy Corporation within the TA'ZIZ Derivatives Park in Ruwais. The facility is designed to produce 1 million metric tons of blue ammonia per annum once operational, with completion targeted for 2027. This initiative supports the UAE's strategy to become a key exporter of low-carbon hydrogen carrier fuels to international markets in Asia and Europe.
• In January 2024, 8 Rivers Capital announced plans to develop a commercial-scale blue ammonia complex in Texas, United States, with an estimated investment of $1.2 billion. The Cormorant Clean Energy Project will utilize the company's proprietary 8RH2 process to produce 880,000 tons of low-carbon ammonia annually while capturing over 99% of associated carbon emissions. This facility represents the first commercial deployment of the firm's oxy-combustion technology, which eliminates direct emissions from the hydrogen production process. The project, backed by South Korean conglomerate SK, aims to supply clean fuel to industrial markets and support global decarbonization efforts.

Key Market Players

• Air Products
• Linde
• Shell
• Sinopec
• Siemens Energy
• Saipem
• Equinor
• H2Green
• BASF
• OCP Group

Report Scope:

In this report, the Global Blue Ammonia Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Blue Ammonia Market, By Application:

• Transportation
• Power Generation
• Industrial Feedstock

• Blue Ammonia Market, By Technology:

• Steam Methane Reforming
• Autothermal Reforming
• Gas partial Oxidation

• Blue Ammonia Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE