Although the resulting chemical NH3 is identical between green ammonia production and regular ammonia production, the process is fairly different. And even more importantly, the environmental impacts are vastly different.
Green ammonia results in no carbon whereas traditional ammonia production results in two tons of CO2 per ton of brown ammonia. Experts recognize the potential ammonia has as an energy source and carrier, but before we can rely more heavily on it, we need a solution to the issue of carbon emissions, transportation and import reliance.
Learn more about the green ammonia market, its potential and companies leading the way in developing sustainable practices that will enable a transformation in the way we think about ammonia production.
What Is Green Ammonia?
Green ammonia is just like any other ammonia when you analyze the chemical itself. However, the production process uses 100 percent renewable and carbon-free resources including water and electricity.
The traditional way of producing ammonia relies heavily on fossil fuels to power steam methane reforming (SMR). This process is very resource heavy, consuming 2 percent of the world’s total energy consumption. And with natural gas prices rising, the price per metric ton of ammonia is increasing, which means increased prices on fertilizers and therefore more expensive consumer goods.
Green ammonia holds great potential because it doesn’t require years of planning and approvals for large facilities like traditional ammonia production. Innovative technology will soon allow companies to produce ammonia on-site with modular, easy-to-setup units.
Green Ammonia Companies
The green ammonia marketplace is expected to grow from $17 million in 2021 to $5.4 billion in 2030. Upfront costs associated with building green ammonia plants have historically been the thing holding back production from overtaking brown ammonia plants. Currently, the green ammonia market is dominated by the following companies.
- Siemens based out of Germany
- NEL Hydrogen based out of Norway
- ThyssenKrupp based out of Germany
- ITM Power based out of the UK
- McPhy Energy based out of France
However, the US is poised to begin green ammonia production. Maire Tecnimont Group is developing a 240 metric ton per day green ammonia plant based in the Midwest. CF Industries is constructing a green ammonia plant in Donaldsonville, Louisiana. It is expected to open in 2023 and produce 20,000 metric tons per year using renewably-generated electricity.
Meanwhile, AmmPower will begin delivering independent ammonia-making machines (IAMM™) in Q1 of 2023. These units will empower companies with reliable on-site ammonia production in modular, scalable units.
Green Ammonia Uses
Green ammonia uses mirror those of brown ammonia uses. That’s because the resulting chemical is identical. It’s just the production process that is different.
The leading ammonia use is in fertilizers to increase crop yields for farmers. Ammonia-based fertilizers release nitrogen into the soil. Nitrogen is an essential nutrient to help plants and lawns grow. This aids in building sustainable food production worldwide because crops naturally deplete the soil of nitrogen.
Ammonia is naturally occurring in the air, water and soil. It does not bioaccumulate or last long in the environment, making it perfectly safe for use in ensuring consistent crop yields.
Green Ammonia FAQs
Want to learn more about green ammonia and its potential? Read up on these commonly asked questions and answers.
How Much Green Ammonia is Produced Annually?
Green ammonia makes up a very small portion of the world’s current 236 metric tons annually. But with new technology, the market is poised to change and make a shift toward larger green ammonia production. This shift will have major impacts on reducing carbon emissions from the use of fossil fuels in making brown ammonia.
Is There a Market for Green Ammonia?
There certainly is a market for green ammonia as scientists and environmentalists look for cleaner ways to produce this crucial chemical and farmers look for more cost-effective ways to fertilize their crops. Thought leaders like AmmPower are transforming how we thought about green ammonia uses with innovative units that farmers, fertilizer companies and others can use on-site for local, on-demand ammonia production.
Is Green Ammonia a Good Investment?
Green ammonia is undoubtedly a good investment. But that’s not to say you need to go purchase green ammonia stock necessarily. The greatest value comes in new ways of producing ammonia that don’t rely on fossil fuels, which can be expensive, and reduce our reliance on importing ammonia from other countries.
What is the Price of Ammonia
The price of ammonia has been rising steeply over the last 18 months. The cost of natural gas and the Russia-Ukraine War are two reasons for the increase from about $200-$400 per ton to $1,300. By moving away from using fossil fuels as feed for ammonia production, the industry can begin to see meaningful change in these prices to offer relief for the fertilizer and farming industry, which accounts for approximately 80 percent of all ammonia production worldwide.
Your Independent Ammonia Making Machine – IAMM™
The greatest opportunity that green ammonia presents is on-site production. You won’t need an enormous ammonia production facility that takes years to build, careful planning, zoning and local approvals.
The future of the green ammonia market is in IAMM™ – your independent green ammonia-making machine from AmmPower.
IAMM units require two inputs: 9.07 MWh of power per ton of NH3 and 130 gallons of water per hour. These units can produce up to 4.4 tons of NH3 per day.
Each unit is the size of a shipping container at 6-7 feet wide and 40 feet long. You’ll get reliable, predictable production that you can scale up and down during the planting season to meet changing needs. And if you need more than 4.4 tons of ammonia per day, you can add another unit.
You’ll completely remove the need to ship ammonia, which will lower the total cost of the chemical and reduce your carbon footprint. You’ll experience a 31 percent pre-tax profitability from each unit.
Want to see if IAMM™ is right for you? Apply now to be one of the first to get a unit when they begin delivery in Q1 of 2023.