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Released September 18, 2023 | NEW DELHI
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September 18, 2023--Researched by Industrial Info Resources (Sugar Land, Texas)--The climate crisis has created an urgent need to transition away from traditional fossil fuels and toward more sustainable options among industry players. As the world seeks solutions to combat climate change, green ammonia and green methanol are emerging as promising alternatives for a low-carbon future.
According to a 2021 report by the International Energy Agency (IEA), hydrogen-based fuels, especially ammonia, must contribute nearly 30% of transport fuels by 2050 as part of the efforts to achieve zero emissions by that year.
Green ammonia (NH3) is ammonia made from green hydrogen and atmospheric nitrogen and is produced using hydrogen derived from water electrolysis, which is fueled by renewable energy sources such as wind and solar. On the other hand, green methanol (e-methanol) is produced from carbon dioxide and green hydrogen made from renewable electricity.
Green Ammonia
Ammonia accounts for about 70% of nitrogen fertilizer production, mainly used in the agriculture industry. Industrial Info is tracking 209 million tons per year of ammonia capacity, almost all of which is currently based on fossil fuels, which is adding to the global carbon footprint. A report by Yale University estimates that a shift to green ammonia can reduce carbon emissions in the farming of corn and small grain crops by as much as 90%.
Industrial Info is tracking 205 active green ammonia projects globally valued at US$81.61 billion. Asia and Africa have emerged as the leading spend drivers of green ammonia with an investment of about US$26.83 billion and US$17.15 billion, respectively, followed by Oceania with US$12.94 billion and North America with US$12.96 billion, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed projects.
Australia (US$12.94 billion), Egypt (US$9.7 billion), USA (US$8.85 billion) and Oman (US$7.8 billion) are contributing a significant amount of investment to the green ammonia market, accounting for about 48% of the total global green ammonia spend.
Fortescue Metals Group Limited (Perth, Australia) and Korea Zinc Company Limited (South Korea) are the top two companies that are investing in green ammonia production.
Fortescue is investing about US$5.28 billion to set up grassroot ammonia facilities with majority of spending in Australia (US$325 million), Egypt (US$1 billion) and Canada (US$3 billion).
Green Methanol
Green methanol also is gaining traction among many industries that are looking to replace traditional fossil fuels, especially the maritime industry, which is still reliant on traditional bunker fuel. According to the Financial Times, 90% of world trade is dependent on global shipping, which is responsible for about 3-4% percent of carbon emissions, and therefore, is facing great pressure to decarbonize.
Industrial Info is tracking about 70 active projects of green methanol worth US$15.42 billion globally. By region, Europe (US$5.17 billion), Asia (US$3.32 billion), North America (US$3.1 billion), and Africa (US$3.03 billion) are the biggest spending drivers accounting for 94.8% of the total spending. Subscribers can click here for a list of detailed project reports.
The U.S. and Denmark are the top two spenders, with US$3.05 billion and US$3.02 billion worth of investment, respectively. Egypt is in third place with US$2.53 billion, closely followed by India with US$2.48 billion worth of spending.
The key players operating in the green methanol market are GreenGo Energy Group (Charlotte, North Carolina) (US$2.61 billion) and Avaada Group (Mumbai, India) (US$1.43 billion).
GreenGo Energy is investing US$2.5 billion to set up a grassroot green methanol plant (Power to X) to produce 1,500,000 tons per year of green methanol in Denmark. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the project report.
Avaada Group is investing in projects coming up in the Kota, Mangalore and Gamjam areas of India. Subscribers can click here for the project reports.
While there has been steady interest in green methanol and green ammonia projects, investments are still very much in an initial planning phase, with just about 10% of the total investment in engineering or starting construction. While the sector is seeing a lot of interest, there are some tangible constraints that will determine the actual realization of these projects.
Both products depend on green hydrogen as a feedstock, which itself is still in a buildout mode. High costs, steady availability of renewable power as well as constantly evolving technology have meant that capital is still hard to come by, with investors preferring to remain on the fence for now. While there is tremendous growth potential, as it stands currently, the sector is still a long way from making a perceptible impact on traditional methods of hydrogen (gray hydrogen), ammonia and methanol production.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
According to a 2021 report by the International Energy Agency (IEA), hydrogen-based fuels, especially ammonia, must contribute nearly 30% of transport fuels by 2050 as part of the efforts to achieve zero emissions by that year.
Green ammonia (NH3) is ammonia made from green hydrogen and atmospheric nitrogen and is produced using hydrogen derived from water electrolysis, which is fueled by renewable energy sources such as wind and solar. On the other hand, green methanol (e-methanol) is produced from carbon dioxide and green hydrogen made from renewable electricity.
Green Ammonia
Ammonia accounts for about 70% of nitrogen fertilizer production, mainly used in the agriculture industry. Industrial Info is tracking 209 million tons per year of ammonia capacity, almost all of which is currently based on fossil fuels, which is adding to the global carbon footprint. A report by Yale University estimates that a shift to green ammonia can reduce carbon emissions in the farming of corn and small grain crops by as much as 90%.
Industrial Info is tracking 205 active green ammonia projects globally valued at US$81.61 billion. Asia and Africa have emerged as the leading spend drivers of green ammonia with an investment of about US$26.83 billion and US$17.15 billion, respectively, followed by Oceania with US$12.94 billion and North America with US$12.96 billion, respectively. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed projects.
Australia (US$12.94 billion), Egypt (US$9.7 billion), USA (US$8.85 billion) and Oman (US$7.8 billion) are contributing a significant amount of investment to the green ammonia market, accounting for about 48% of the total global green ammonia spend.
Fortescue Metals Group Limited (Perth, Australia) and Korea Zinc Company Limited (South Korea) are the top two companies that are investing in green ammonia production.
Fortescue is investing about US$5.28 billion to set up grassroot ammonia facilities with majority of spending in Australia (US$325 million), Egypt (US$1 billion) and Canada (US$3 billion).
Green Methanol
Green methanol also is gaining traction among many industries that are looking to replace traditional fossil fuels, especially the maritime industry, which is still reliant on traditional bunker fuel. According to the Financial Times, 90% of world trade is dependent on global shipping, which is responsible for about 3-4% percent of carbon emissions, and therefore, is facing great pressure to decarbonize.
Industrial Info is tracking about 70 active projects of green methanol worth US$15.42 billion globally. By region, Europe (US$5.17 billion), Asia (US$3.32 billion), North America (US$3.1 billion), and Africa (US$3.03 billion) are the biggest spending drivers accounting for 94.8% of the total spending. Subscribers can click here for a list of detailed project reports.
The U.S. and Denmark are the top two spenders, with US$3.05 billion and US$3.02 billion worth of investment, respectively. Egypt is in third place with US$2.53 billion, closely followed by India with US$2.48 billion worth of spending.
The key players operating in the green methanol market are GreenGo Energy Group (Charlotte, North Carolina) (US$2.61 billion) and Avaada Group (Mumbai, India) (US$1.43 billion).
GreenGo Energy is investing US$2.5 billion to set up a grassroot green methanol plant (Power to X) to produce 1,500,000 tons per year of green methanol in Denmark. Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for the project report.
Avaada Group is investing in projects coming up in the Kota, Mangalore and Gamjam areas of India. Subscribers can click here for the project reports.
While there has been steady interest in green methanol and green ammonia projects, investments are still very much in an initial planning phase, with just about 10% of the total investment in engineering or starting construction. While the sector is seeing a lot of interest, there are some tangible constraints that will determine the actual realization of these projects.
Both products depend on green hydrogen as a feedstock, which itself is still in a buildout mode. High costs, steady availability of renewable power as well as constantly evolving technology have meant that capital is still hard to come by, with investors preferring to remain on the fence for now. While there is tremendous growth potential, as it stands currently, the sector is still a long way from making a perceptible impact on traditional methods of hydrogen (gray hydrogen), ammonia and methanol production.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
