Report Description

United Kingdom Green Ammonia Market is anticipated to grow at a significant rate in the forecast period, 2024-2028. Ammonia is a chemical compound made of nitrogen and hydrogen atoms. It is widely used in the agriculture and chemical industries, as well as in refrigeration and cleaning products. However, the traditional process for producing ammonia involves high energy consumption and greenhouse gas emissions, which have led to the development of "green ammonia" as an alternative. According to the United Kingdom Government, the UK reduced its power sector emissions by over 70 percent between 1990 and 2019 and generates more electricity from offshore wind than any other country.

The chemical industry is one of the largest consumers of nitrogen, with ammonia being a key feedstock to produce a wide range of chemicals, including fertilizers, plastics, and pharmaceuticals. The use of green ammonia provides a sustainable and low-carbon alternative to traditional ammonia, helping to reduce the environmental impact of the chemical industry. According to the European Chemical Industry Council or Cefic, chemicals, and pharmaceuticals were the UK's second-largest manufacturing sector in 2021, trailing only machinery and transport equipment, with exports exceeding USD54 billion and value added to the economy of USD30.7 billion. The demand for green ammonia in the chemical industry in the UK is being driven by a range of factors, including government regulations and policies aimed at reducing greenhouse gas emissions and promoting sustainable practices in the industry. The UK government has set ambitious targets for reducing greenhouse gas emissions, to achieve net-zero emissions by 2050. To achieve this target, the government has implemented a range of policies and regulations to encourage the development of low-carbon technologies, including green ammonia.

Green ammonia is quickly gaining traction as a sustainable and low-carbon alternative to traditional bunker fuels in the shipping industry in the United Kingdom (UK). As one of the largest emitters of greenhouse gases, the shipping industry is under increasing pressure to reduce its carbon footprint and transition to more sustainable fuels. As per Maritime UK, the shipping sector contributes USD11 billion to GDP and is crucial to the economy. In addition, it contributes USD2.75 billion in taxes to the UK government, which sustains 240,000 jobs. One of the key policies driving the adoption of green ammonia in the shipping industry is the International Maritime Organization's (IMO) target of reducing greenhouse gas emissions from the shipping sector by at least 50% by 2050 compared to 2008 levels. The use of green ammonia can help shipping companies to meet these targets and reduce their carbon footprint. The shipping industry in the UK is increasingly recognizing the benefits of using green ammonia as a sustainable and low-carbon alternative to traditional bunker fuels. The use of green ammonia can help shipping companies to reduce their carbon footprint, comply with government regulations, and meet the growing demand for sustainable transportation. As the demand for sustainable and low-carbon transportation options continues to grow, the use of green ammonia is poised to become an increasingly important component of the shipping industry in the UK. With government support and a growing awareness of the benefits of sustainable practices, the shipping industry is helping to create a more sustainable and resilient transportation sector in the UK.

Green ammonia is produced using renewable energy sources such as wind, solar, or hydropower, which can help reduce the carbon footprint of the ammonia industry. The growing demand for sustainable and environmentally friendly practices has created a significant market for green ammonia. According to the International Renewable Energy Agency (IRENA), ammonia production accounted for around 45% of global hydrogen consumption or around 33 million tonnes (Mt) of hydrogen in 2020.