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Global supply and demand trade flow of green ammonia
07 December 2021IHS Markit Agribusiness Expert
Green ammonia is a promising global sustainable energy
solution, with growth encouraged by its ability to store as "green"
electricity and carry hydrogen.
Market development will be affected by how quickly green ammonia
production costs can be lowered and how much demand materializes.
While pilot uses will be increasingly seen in the short-term,
commercialization will likely take 10+ years. Changing market
conditions may spur faster growth. Countries in the EU, North
America, and APAC have targeted green ammonia and will likely adopt
solutions early.
The emergence of the green ammonia energy market—alongside
the market for this commodity as a sustainable agribusiness
feedstock—may lead to dramatic price shifts. Firms need to
incorporate green ammonia into their long-term forecasts.
By 2040, the total volume of world trade in low-carbon ammonia
may reach 69 million tonnes, three-to-five times the volume of
global trade in gray ammonia in 2020.
Green ammonia's potential as a hydrogen carrier may make it key
in transporting energy between continents as renewable energy
markets thrive. The possible geography of low-carbon ammonia trade
flows in 2040 are represented in this infographic, based on IHS
Markit forecast models for ammonia production and consumption.
