The Europe Green Ammonia Market was valued at USD 196.6 million in 2024. The market is estimated to reach USD 315 million in 2025 and is projected to grow to USD 38.4 billion by 2035, at a CAGR of 61.6% during the forecast period.

Europe Green Ammonia Market - Key Highlights

Why the Europe Green Ammonia Market is Growing?

• The Europe Green Ammonia Market is growing rapidly due to strong policy support aimed at achieving carbon neutrality by 2050. Ammonia is seen as a key solution for reducing carbon emissions in agriculture, shipping, and energy storage.
• Europe is leading globally, with around 165 announced green ammonia projects. These projects aim for a combined capacity of about 3.5 to 4 million tonnes annually by 2030, representing a significant portion of global planned production.
• The REPowerEU Plan commits about €300 billion to energy independence. This includes major investments in renewable hydrogen and ammonia production infrastructure. The EU Hydrogen Strategy aims for 10 million tonnes of domestic renewable hydrogen production by 2030. Green ammonia is positioned as a crucial long-term storage and transport option for extra renewable electricity.
• Germany is a leader in this effort, providing substantial funding under its National Hydrogen Strategy. The country is investing billions of euros to support green ammonia projects. It has around 45 planned green ammonia projects with a target capacity of roughly 3.8 million tonnes. Notable initiatives include BASF’s large-scale green chemicals transformation, Yara’s renewable ammonia facilities, and RWE’s 300 MW power-to-ammonia projects, which show industrial-scale viability.
• The Netherlands is becoming a European green ammonia hub by utilizing North Sea offshore wind power and its well-established ammonia infrastructure at the Rotterdam port. Key projects by Yara Sluiskil, OCI, and Shell’s Holland Hydrogen-1 collectively aim for around 2.2 million tonnes of planned green ammonia capacity, making the Netherlands a major player in global markets.
• Nordic countries are taking advantage of their abundant renewable energy resources. Norway has a 24 TWh surplus in hydroelectric power, while Denmark aims for 50 GW of offshore wind capacity by 2030. Industry leaders like Ørsted, Equinor, and Statkraft are leading the way in developing large-scale green ammonia projects for both domestic use and international exports.
• The European shipping industry is boosting demand for marine fuel in line with International Maritime Organization (IMO) targets to cut emissions by 50% by 2050. Shipping companies such as Maersk, CMA CGM, and MSC Mediterranean Shipping plan to use ammonia-fueled vessels, which is expected to create demand for 15 million tonnes of green ammonia annually by 2040 at key European ports.
• Carbon pricing via the EU Emissions Trading System (EU ETS) is a key economic driver, with carbon prices hovering around €50 to €65 per tonne of CO2 in 2024. This pricing encourages the use of green ammonia. The Carbon Border Adjustment Mechanism (CBAM), which will apply to fertilizers from 2026 onward, will give European green ammonia producers an advantage over conventional imports.
• Agricultural decarbonization is moving forward with support from the Common Agricultural Policy and growing consumer demand for sustainable production. Leading fertilizer companies like Yara, CF Industries, and EuroChem have invested around €18 billion in green ammonia projects, aiming for 40% renewable content by 2030 and full decarbonization by 2050.

Market Segmentation

The Europe green ammonia market is segmented by technology, production method, application, end-user, renewable energy source, and country. Production methods include Haber-Bosch Process with Green Hydrogen, Electrochemical Processes, Photocatalytic Processes, and Biomass Gasification. Applications encompass Fertilizer Production, Energy Storage, Marine Fuel, Power Generation, and Industrial Raw Materials.

Alkaline Water Electrolysis Dominates with 55-60% Market Share

By technology, the green ammonia market is further segmented into Alkaline Water Electrolysis (AWE), Proton Exchange Membrane (PEM) Electrolysis, Solid Oxide Electrolysis (SOE), and Other Technologies. Alkaline Water Electrolysis (AWE) is expected to hold around 55-60% share of the overall European green ammonia market in 2025.

AWE technology is now available for commercial use and is commonly found in various industrial settings across Europe. It has proven reliability and competitive costs. Leading manufacturers of electrolyzers in Europe, such as Nel ASA from Norway, ThyssenKrupp Uhde from Germany, and Sunfire from Germany, are helping to drive the development and deployment of green hydrogen and ammonia technologies worldwide.

Key projects using electrolysis technology include BASF’s facility in Ludwigshafen, which features a 54 MW proton exchange membrane (PEM) electrolyzer; it is one of Europe’s largest installations and supplies renewable hydrogen for green ammonia and chemical production. Yara is also advancing renewable ammonia projects, including a 24 MW electrolyzer plant at Herøya, Norway. This plant supports their production of green ammonia for sustainable fertilizer, and the company has more projects in the Netherlands that incorporate carbon capture technologies.

The NEOM project, led by Air Products, involves a significant investment of about €7 billion. This large-scale facility for green hydrogen and ammonia is located in Saudi Arabia but aims to serve global and European markets. It plans to produce around 1.2 million tonnes of green ammonia annually, making it one of the largest green ammonia projects worldwide.

AWE technology usually achieves electrical efficiencies between 60% and 70%, making it suitable for the demands of commercial ammonia production. The sector benefits from established supply chains, increased standardization of electrolyzer parts, and a skilled workforce. Many projects in Europe use offshore wind power to supply renewable electricity directly. AWE systems are designed to manage variable renewable energy inputs and provide grid balancing services, which can generate additional income beyond ammonia production.

Fertilizer Production Leads Applications with 50-55% Market Share

Fertilizer production holds around 50-55% of the European green ammonia market in 2025. This is primarily due to the need for agricultural decarbonization and the push for sustainable food production. It includes nitrogen fertilizer manufacturing, compound fertilizer production, and direct application solutions for 173 million hectares of farmland in Europe.

European fertilizer companies are taking the lead in the green transition by making significant investments and expanding their capacity. Yara has committed around €3 billion to renewable ammonia production projects in Norway, the Netherlands, and Germany. BASF is investing about €10 billion in its shift toward green chemicals, aiming for carbon-neutral ammonia production by 2030. OCI N.V. is developing around 1.1 million tonnes of renewable ammonia capacity for both European and export markets.

This sector benefits from strong distribution networks, strong relationships with farmers, and regulatory support from the EU Common Agricultural Policy, which focuses on sustainability. European farmers are increasingly open to paying a premium of 10-15% for sustainable agricultural inputs, which helps the economic viability of carbon-neutral fertilizers.

Overall, fertilizer production is the largest and fastest-growing use of green ammonia in Europe. It is supported by strong policy frameworks, strategic corporate investments, and changing market conditions that favor cleaner and sustainable agricultural inputs.

Key Growth Drivers, Restraints, and Trends of Green Ammonia Market in Europe

The growth of the European green ammonia market is fueled by strong decarbonization goals, abundant renewable energy resources, committed plans for industrial change, and effective carbon pricing systems like the EU Emissions Trading System (ETS) and Carbon Border Adjustment Mechanism (CBAM). These factors increase demand in sectors such as agriculture, shipping, power generation, and chemicals.

Impact of Key Growth Drivers and Restraints

Base CAGR: 61.6%

Market Restraints

Competitive Landscape

• The European green ammonia market ecosystem includes a mix of traditional ammonia producers, renewable energy companies, technology providers, and engineering firms.
• Key players rely on existing industrial infrastructure, long-term customer relationships, and significant technical expertise across the whole green ammonia value chain.
• Major companies like BASF, Yara International, and OCI N.V. are driving market growth with smart investments and expanding renewable ammonia production.
• BASF has started producing renewable ammonia at its Ludwigshafen site using renewable hydrogen, which greatly reduces its carbon footprint.
• Yara is working on significant green ammonia projects in Norway, the Netherlands, and Germany, while OCI is developing large-scale renewable ammonia production for both European and export markets.
• Technology and engineering firms such as Siemens Energy, ThyssenKrupp Uhde, and Haldor Topsoe provide essential equipment and integrated system solutions for green ammonia synthesis.
• Renewable energy leaders like Ørsted, Iberdrola, and Engie drive power-to-ammonia projects that link offshore wind generation with ammonia production.
• New innovators such as Starfire Energy, GenCell Energy, and Jupiter Ionics focus on developing new electrolysis and synthesis technologies.

Together, these players create a supportive ecosystem that speeds up the green ammonia transition in Europe.

Recent Developments in the Europe Green Ammonia Market

• In May 2025, BASF officially launched the production of renewable ammonia at its Verbund site in Ludwigshafen, Germany. This was the first renewable ammonia production in Central Europe.
• BASF introduced two renewable ammonia products: renewable ammonia and a 24.5% renewable ammonia solution. Both are certified under the ISCC+ sustainability standard. These renewable ammonia products can directly replace conventional ammonia without requiring changes to existing applications or infrastructure.
• BASF’s renewable ammonia offering fits with its sustainability goals. The company aims to reach net-zero carbon emissions by 2050. It also plans to offer at least one circular or low product carbon footprint (PCF) option for every major product line by 2025.
• In October 2024, BASF and AM Green signed a Memorandum of Understanding (MoU) to explore options for low-carbon chemicals, including the production of green ammonia and collaboration in the supply chain.
• Renewable energy companies like Ørsted and Iberdrola continue to develop integrated offshore wind-to-ammonia projects across Europe. These projects support large-scale ammonia production linked to renewable electricity.
• Technology providers such as Siemens Energy, ThyssenKrupp Uhde, and Haldor Topsoe are deploying new electrolyzers and advanced ammonia synthesis systems to boost market growth.

Europe Green Ammonia Market Report Coverage and Summary