Middle East & Africa Green Ammonia Market, By Production Method (Alkaline Water Electrolysis, Proton Exchange Membrane, and Solid Oxide Electrolysis), By End Use (Power Generation, Transportation, Fertilizers, Others), By Country, Competition, Forecast and Opportunities, 2019-2029F
Published Date: December - 2024 | Publisher: MIR | No of Pages: 320 | Industry: Chemicals | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationMiddle East & Africa Green Ammonia Market, By Production Method (Alkaline Water Electrolysis, Proton Exchange Membrane, and Solid Oxide Electrolysis), By End Use (Power Generation, Transportation, Fertilizers, Others), By Country, Competition, Forecast and Opportunities, 2019-2029F
| Forecast Period | 2025-2029 |
| Market Size (2023) | USD 415.20 Million |
| CAGR (2024-2029) | 6.87% |
| Fastest Growing Segment | Power Generation |
| Largest Market | Saudi Arabia |
| Market Size (2029) | USD 595.33 Million |
The collective investment in renewables for Africa and the Middle East accounted for just 1.6% of the global total, approximately USD 8.4 billion. Israel led the region with a 9.2% growth in investment, reaching USD 0.99 billion.
Historically, the MEA region has held a dominant position in the global energy landscape, primarily due to its abundant reserves of oil and gas. However, as environmental issues take center stage, there is a shift towards green ammonia production as a means to reduce carbon emissions. This historical dependence on fossil fuels is now being challenged as the region transitions towards more sustainable energy solutions.
The MEA green ammonia market is witnessing notable growth, with an increasing number of key players actively contributing to its development. Prominent industry leaders in the region include Qatar Energy, Yara International, and SABIC. These companies are driving advancements in green ammonia production and shaping the market's trajectory.
Several factors fuel the demand for green ammonia in the MEA region. Abundant renewable energy resources, notably solar and wind, provide a strong foundation for green ammonia production. Additionally, a growing emphasis on sustainability, carbon reduction goals set by governments and industries, and the search for energy diversification are propelling the development of green ammonia projects.
With abundant renewable energy resources and a growing global demand for sustainable ammonia, the region is well-positioned to make a significant impact on the green ammonia landscape. The industry's adaptability to evolving market dynamics, investments in infrastructure, and alignment with global sustainability goals will be pivotal in shaping its growth trajectory.
Key Market Drivers
Abundant Availability of Renewable Energy Resources is Driving the demand for Middle East & Africa Green Ammonia Market
The Middle East and Africa (MEA) region is experiencing a surge in the demand for green ammonia, and the primary driving force behind this demand is the abundant availability of renewable energy resources. Green ammonia, produced through the synthesis of ammonia using renewable energy sources, is gaining prominence as a sustainable and environmentally friendly solution in the field of energy storage and transportation. The MEA region, known for its vast renewable energy potential, is poised to become a key player in the global green ammonia market.
Despite having ample solar and wind resources and facing increasing water scarcity, the Middle East still falls behind other regions in the adoption of renewable electricity. In 2023, the region's share of renewable electricity only reached 3.4%, comprising 1.7% from hydropower, 1.4% from solar power, and 0.2% from wind power.
The MEA region is also known for its strong and predictable wind patterns, especially along coastal areas. Wind farms have been established throughout the region, generating substantial amounts of renewable energy that can be harnessed for green ammonia production. The combination of abundant solar and wind resources positions the MEA region as a strategic hub for the large-scale production of green ammonia.
The MEA region's role in global energy security is a compelling factor driving the demand for green ammonia. The region has historically played a vital role in the global energy landscape due to its vast oil and gas reserves. By diversifying its energy offerings and embracing green ammonia, the MEA region can secure its energy future and potentially export this clean energy carrier to international markets, contributing to the global transition towards renewable energy sources.
Growing Demand for Green Ammonia from Key Industries is Expected to Propel the Middle East & Africa Green Ammonia Market
The Middle East and Africa (MEA) region is witnessing a notable rise in the demand for green ammonia, driven by a growing appetite for sustainable solutions across key industries. Green ammonia, synthesized using renewable energy sources to reduce carbon emissions, is gaining significant traction as an eco-friendly energy carrier. The MEA region, well-endowed with abundant renewable energy resources, is poised to become a prominent player in the global green ammonia market, largely due to the increased demand from key industrial sectors.
One of the central drivers for the surging demand for green ammonia in the MEA region is the increasing interest and commitment from various key industries to transition to cleaner and more sustainable energy sources. Energy-intensive sectors such as petrochemicals, fertilizers, and heavy manufacturing are major contributors to the region's economic landscape. These industries have traditionally relied on fossil fuels to meet their energy requirements. However, with a growing global focus on sustainability and environmental responsibility, many of these sectors are now looking to adopt green ammonia as an alternative and cleaner energy source.
. Brooge Energy's renewable energy subsidiary, based in the Cayman Islands, has completed a successful feasibility study for its green ammonia project in Abu Dhabi, UAE. The project by Brooge Renewable Energy (BRE) will include a green ammonia plant with a capacity of 1,950 tonnes per day, delivered in two phases. The initial phase of 300 tonnes per day will precede the full plant completion. Upon full commissioning, the BRE green ammonia plant is set to produce 685 kilotonnes annually.
Governments and policymakers across the MEA region have recognized the potential of green ammonia and are actively supporting its growth. Numerous countries in the region have set ambitious renewable energy targets, with incentives and investments in place to facilitate green ammonia production. These initiatives are in line with global sustainability goals, reflecting the region's commitment to reducing carbon emissions and fostering a more sustainable energy landscape.
Financial and Regulatory Support for Green Ammonia Projects is Expected to Propel the Middle East & Africa Green Ammonia Market Growth
The Middle East and Africa (MEA) region is witnessing a growing interest in green ammonia projects, and one of the key factors expected to propel the region's green ammonia market growth is the significant financial and regulatory support provided by governments and relevant authorities. Green ammonia, produced through the synthesis of ammonia using renewable energy, holds immense promise as a sustainable and environmentally responsible energy carrier. The MEA region, renowned for its abundant renewable energy resources, is well-positioned to harness this potential, thanks to the supportive financial incentives and regulatory frameworks in place.
On April 15, 2023, the Egyptian Cabinet issued three decrees facilitating the inclusion of green hydrogen and ammonia projects in promotional initiatives. Cabinet Decree No. 20 of 2023 mandates GAFI to collaborate with relevant ministries for a decree outlining conditions to categorize a project as strategic or national under Article 20 of the Investment Law. The decree explicitly recognizes the production, storage, and export of green hydrogen and green ammonia as integral to the state's economic development strategy.
The MEA region is witnessing an influx of foreign investments and partnerships in the green ammonia sector. These partnerships often involve international corporations and financial institutions that are committed to supporting the transition to sustainable energy solutions. Their investments contribute to the development and expansion of green ammonia projects in the region, while also fostering cross-border collaborations and knowledge exchange.
The industrial sector in the MEA region is a significant beneficiary of green ammonia and the financial incentives provided. Energy-intensive industries, which have historically relied on fossil fuels, are now transitioning to green ammonia as a cleaner and more sustainable energy source. By doing so, they can meet environmental regulations and contribute to the region's commitment to a greener and more sustainable energy ecosystem. This transition is supported by the region's financial and regulatory mechanisms, which reduce the financial burden of adopting green ammonia technologies.
Key Market Challenges
Competition from Other Sustainable Alternatives Poses a Significant Obstacle to Market Expansion
Competition from other sustainable alternatives, combined with high upfront costs, is posing a significant obstacle to the expansion of the Middle East and Africa (MEA) Green Ammonia market. Green ammonia, produced through the synthesis of ammonia using renewable energy-generated hydrogen, is gaining attention as a clean energy carrier and a way to reduce carbon emissions in the ammonia production process. However, it faces competition from other sustainable energy carriers and storage solutions like hydrogen and methanol.
The initial investment required to establish green ammonia production facilities, including renewable energy infrastructure, electrolyzers, and ammonia synthesis equipment, can be substantial. This, coupled with competition from other clean energy carriers, makes it challenging for green ammonia to gain a foothold in the market.
Lack of infrastructure
The lack of infrastructure is a significant hindrance to the development of the Middle East and Africa (MEA) Green Ammonia market. Green ammonia, produced using renewable energy-powered electrolysis to generate hydrogen, has gained attention as a sustainable fuel and feedstock for the future. However, the establishment of a comprehensive infrastructure for green ammonia production, distribution, and utilization remains a considerable challenge in the MEA region.
To address this challenge and drive the growth of the MEA Green Ammonia market, governments, private sectors, and international organizations must collaborate to invest in the necessary infrastructure and create a conducive environment. Building a robust infrastructure network is essential for the widespread adoption of green ammonia and the realization of the region's sustainability and decarbonization goals.
Key Market Trends
Growing Demand for Sustainable Alternatives to Conventional Ammonia
The Middle East and Africa (MEA) Green Ammonia market is witnessing significant growth, driven by the growing demand for sustainable alternatives to conventional ammonia production methods. This trend highlights the region's commitment to environmental sustainability and the recognition of green ammonia as a pivotal solution in addressing the challenges of traditional ammonia production.
One of the major applications of green ammonia is in the production of carbon-free fertilizers. With the increasing emphasis on sustainable agriculture and reduced environmental impact, green ammonia-based fertilizers are gaining popularity. They allow farmers to enhance crop yields while minimizing the carbon footprint of agricultural practices.
Increasing Investment in Renewable Energy
The Middle East and Africa (MEA) Green Ammonia market is experiencing substantial growth, primarily driven by the increasing investments in renewable energy sources within the region. This trend underscores the region's commitment to sustainability, energy diversification, and the pivotal role that green ammonia plays in advancing these objectives.
Green ammonia's versatility is a driving factor behind these investments. It can be used as a carbon-free fuel, an energy carrier, and a feedstock for various industries, including agriculture and chemicals. This flexibility makes green ammonia a strategic choice for the region's energy and industrial needs. T
Segmental Insights
Production Method Insights
Based on the production method, the Alkaline Water Electrolysis segment emerged as the dominant segment in the Middle East & Africa market for Green Ammonia in 2023. This can be driven by its cost-effectiveness, reliability, integration with renewable energy, strong demand for green ammonia, potential for hydrogen and ammonia export, government support, and its role in serving various industrial sectors.
Alkaline water electrolysis is known for its cost-effectiveness, making it an attractive option for green ammonia production in the MEA region. This cost advantage is especially important in regions where cost efficiency is a priority.
Green ammonia production relies on a source of green hydrogen. Alkaline water electrolysis is a reliable and efficient method for producing green hydrogen, which is then used as a feedstock for green ammonia synthesis. The MEA region has significant demand for ammonia, particularly in sectors like agriculture for fertilizer production and in various industrial applications. The ability to produce green ammonia locally is a key driver for the adoption of alkaline water electrolysis.
End Use Insights
Based on the end use, the power generation segment is the fastest growing segment in the MEA market for green ammonia is driven by its role in energy storage, renewable energy integration, decarbonization efforts, energy export potential, and its contribution to grid stability and energy security.
Green ammonia has the potential to be used as an energy carrier and storage medium. It can help stabilize energy grids, especially in regions with intermittent renewable energy sources like solar and wind. Power generation applications benefit from the flexibility of green ammonia in ensuring a stable and reliable energy supply. The MEA region has significant renewable energy potential, including abundant sunlight and wind resources. Green ammonia can play a crucial role in storing excess energy generated from renewables during peak production and releasing it during periods of high energy demand. This integration supports the growth of the power generation sector and enhances its reliability.
Many countries in the MEA region have set ambitious decarbonization targets and are seeking to reduce greenhouse gas emissions from power generation. Green ammonia, as a clean energy carrier, aligns with these goals and serves as a key element in transitioning to a low-carbon power generation sector. Green ammonia can be converted back into hydrogen, which can be used in fuel cells or gas turbines for power generation. The flexibility of green ammonia to produce hydrogen for power generation applications is a driving factor for the dominance of the power generation segment.
Some countries in the MEA region are exploring the export of green ammonia as a form of energy carrier. The power generation sector is integral in the production and export of green ammonia, which positions the segment as a dominant player in the global green ammonia trade.
Country Insights
Based on the country, Saudi Arabia's dominance in the MEA market for green ammonia is driven by its abundant renewable resources, strategic location, government support and investments, ambitions for hydrogen and ammonia export, research and development efforts, and alignment with sustainable development goals. These factors collectively establish Saudi Arabia as the dominant player in the green ammonia market in the Middle East & Africa.
Saudi Arabia's Vision 2030 plan includes a strong commitment to economic diversification and sustainability. Green ammonia production aligns with these objectives and is a central component of the country's strategy for the future. The Saudi government has actively promoted the development of green ammonia projects through policy support, investments, and incentives. This support has accelerated the growth of the green ammonia sector in the country. Saudi Arabia aims to become a significant exporter of green ammonia. Its geographic location, commitment to green ammonia production, and access to global markets position it as a dominant player in the export of green ammonia.
Recent Developments
- In 2023, Poland-based Hynfra and Jordan-based Fidelity Group have teamed up to form Jordan Green Ammonia. The new entity will develop a renewable ammonia production facility with annual capacity in the range 100, 000 – 200, 000 tonnes. The facility will be located at the tip of the Gulf of Aqaba in the Aqaba Special Economic Zone (ASEZ) in Jordan.
Key Market Players
- AMEA
Power
- Hynfra and Amarenco MENA
- ACME Group
- Hive Energy Ltd
- TAQA and AD Ports Group
- NEOM Green Ammonia Co.
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