Green ammonia is poised for big growth in Europe over the next several years thanks to several ongoing market and policy demands.
That’s according to a recent report from ResearchandMarkets.com, which offered a big picture look at the European green ammonia market. Green ammonia is known as a zero-carbon fertilizer, fuel and energy store that is already widely used today. It is produced through electrolysis using renewable electricity. It is free from carbon dioxide emissions, unlike conventional ammonia.
There is big potential for green ammonia in Europe, which has ramped up its climate change mitigation efforts. Replacing conventional ammonia with green ammonia could help Europe achieve its decarbonization targets. In particular, the European Union is aiming to make Europe climate-neutral by 2050 and reduce greenhouse gas emissions by at least 55% by 2030.
The EU also has a target of producing 10 million tons of renewable hydrogen by 2030, which will be used to make green ammonia in Europe, the report noted.
“Therefore, the Europe Green Ammonia Market is going to hold an impressive market share to fulfill their sustainability goals,” the report stated.
Denmark, Germany, and the Netherlands are each leaders in wind energy production, a renewable energy source needed to produce green ammonia. As such, the countries are also ripe for green ammonia production. Southern Europe has the potential for green ammonia market growth as well as the area has a significant opportunity for solar energy.
The product could also help Europe meet its agricultural targets when it comes to climate change, according to the report.
“Conventional fertilizers used in agriculture are often produced using fossil fuels, which results in significant greenhouse gas emissions,” the report read. “Green ammonia, on the other hand, is produced using renewable energy and waste streams such as carbon dioxide, resulting in significantly lower greenhouse gas emissions.”
Across the board, there are numerous ways for green ammonia market growth to catch on in Europe as the EU plans to leverage renewable energy to produce it. From the agriculture to transport sectors, the EU’s commitment to green ammonia bodes good news for climate change targets.
“By investing in research and development and supporting the development of renewable energy sources, the EU is paving the way for a cleaner, more sustainable future,” the report concluded.