Green ammonia may become the practical way to move green hydrogen around the world. Denser than pure hydrogen and shipped via existing infrastructure, ammonia could enable international clean energy trade. This guide covers the technology, projects, and outlook.
What ammonia is
Ammonia (NH3) is a nitrogen hydrogen compound. Currently 180 million tonnes produced annually, mostly for fertiliser. Second most produced chemical globally. Well established global shipping and storage infrastructure.
Green vs other ammonia
| Colour | Hydrogen source | Notes |
|---|---|---|
| Grey (99% of current production) | Natural gas reforming | High CO2 emissions |
| Blue | Natural gas plus CCS | Lower emissions if CCS good |
| Green | Renewable powered electrolysis | Near zero emissions |
| Pink | Nuclear powered electrolysis | Low emissions |
How ammonia is made
The Haber Bosch process combines nitrogen (from air) with hydrogen at high temperature and pressure over a catalyst. Very mature industrial technology. Green ammonia uses renewable powered electrolysis for hydrogen input. See our companion article on green hydrogen.
Why ammonia as hydrogen carrier
| Attribute | Ammonia | Pure hydrogen |
|---|---|---|
| Density at storage conditions | ~120 kg H2 per m3 (liquid) | ~40 kg H2 per m3 (700 bar) |
| Liquefaction conditions | Minus 33 C at atmospheric pressure | Minus 253 C |
| Existing infrastructure | Yes (fertiliser trade) | Limited |
| Global handling experience | Extensive | Limited |
| Toxicity | Toxic (concern) | Not toxic |
Applications for green ammonia
- Direct fertiliser replacing grey ammonia (biggest current market).
- Hydrogen carrier for international trade.
- Shipping fuel (industry decarbonisation).
- Power generation (co firing or dedicated).
- Industrial process feedstock.
- Rail and heavy transport fuel (potential).
Major projects announced
| Project | Location | Scale |
|---|---|---|
| NEOM Saudi Arabia | Saudi Arabia | 1.2 MTPA green ammonia by 2027 |
| H2 Green Steel Sweden | Sweden | Steel plus ammonia integrated |
| Fortescue Future Industries | Australia, global | Multi MTPA global portfolio |
| Air Products Neom | Saudi Arabia | 1.2 MTPA export ammonia |
| Yara Norsk Hydro | Norway | Green ammonia at existing plant |
| Woodside Energy | Australia | Multiple projects |
| Uniper Nord Pool | Germany | Import terminal |
Ammonia as shipping fuel
International Maritime Organization (IMO) targeting decarbonised shipping. Ammonia among the leading candidates alongside methanol. Multiple engine manufacturers (MAN, Wartsila) developing ammonia engines. First commercial ammonia ships expected late 2020s.
Power generation from ammonia
Japan and Korea planning ammonia co firing at coal power plants as decarbonisation transition. Marubeni, JERA, and IHI leading. Dedicated ammonia power plants at pilot stage.
Cost trajectory
Technical challenges
- Ammonia conversion back to hydrogen requires energy.
- Ammonia combustion produces NOx emissions requiring controls.
- Toxicity requires careful handling.
- Fugitive emissions from leaks (nitrous oxide is greenhouse gas).
- Direct use requires new engine or turbine designs.
- Fertiliser vs energy competing demand.
Emerging global trade
| Exporter | Importer |
|---|---|
| Middle East (solar plus wind) | Europe, Asia |
| Australia (solar plus wind) | Japan, Korea |
| Chile (wind) | Global via Panama |
| Norway (existing infrastructure) | EU |
| North Africa (solar) | Europe |
Policy support
US IRA hydrogen production tax credit (up to USD 3 per kg) applies to green ammonia production. EU import demand supported by ETS pricing. Japan H2 basic plan targets 3 million tonnes hydrogen imports by 2030. Korea has similar targets.
Renewable siting matters
Green ammonia project economics depend heavily on renewable electricity costs. Sites with world class solar plus wind (Neom, Pilbara Australia, Chilean Atacama) most competitive. Higher electricity cost regions likely importers rather than producers.
Storage and transport
Ammonia can be shipped as refrigerated liquid at atmospheric pressure or pressurised at ambient temperature. Standard fertiliser transport equipment adaptable. Ports of Rotterdam, Antwerp, Singapore, Los Angeles all preparing.
Regulation
Growing regulatory attention. Safety standards for storage and shipping evolving. Emissions requirements for combustion. Standardisation efforts through ISO and industry associations.
Where green ammonia is going
- First large scale export projects online 2026 to 2028.
- Shipping fuel deployment growing late 2020s.
- Power generation co firing expanding.
- Fertiliser decarbonisation slower.
- Trade flows establishing.
- Cost reduction with scale.
Frequently asked questions
Why ammonia not just hydrogen?
Denser and easier to ship internationally.
Is it dangerous?
Toxic. Requires careful handling but industry has 100+ years experience.
Can we burn ammonia?
Yes with new engine or turbine designs.
Who leads production?
Middle East, Australia, and Chile developing large export projects.
What is the fuel use?
Shipping fuel most promising near term.
How much is invested?
Hundreds of billions of dollars in announced projects globally.
Is ammonia zero carbon?
Green ammonia near zero. Depends on hydrogen source.
Does fertiliser still dominate?
Yes currently. Energy uses growing.
How is it shipped?
Refrigerated ammonia carriers. Similar to LPG ships.
Where can I read more?
IEA Global Hydrogen Review, Ammonia Energy Association, project developer sites.
Summary
Green ammonia is emerging as the practical hydrogen carrier for international trade. Existing shipping infrastructure, well understood storage, and dense hydrogen content make it the leading candidate. Multiple mega projects underway in Middle East, Australia, Chile. Shipping fuel, power co firing, and fertiliser decarbonisation are the main applications. Cost currently 2 to 3 times grey ammonia; falling. Watch NEOM commissioning as major inflection point.
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