Green ammonia: Sustainable and energy-efficient chemistry

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  Quantumrun Foresight
• June 27, 2022

Insight summary

The transition to green ammonia is seen as a promising move towards reducing carbon emissions, especially in heavy industries and transportation, where it could replace liquid hydrogen as an energy source. This shift is part of a broader effort to explore safer and more sustainable fuels, with green ammonia being easier to transport and its production powered by renewable energy sources. However, the production cost of green ammonia is currently higher compared to other fuels, posing challenges for its widespread adoption.

Ammonia as energy storage context

For centuries, energy-carrying molecules have served as the most cost-efficient means of low-cost energy transfer. Today, increasing demand to replace carbon-intensive energy has created opportunities for molecules found within hydrogen, methanol, and ammonia as possible replacements for fossil fuel-based energy sources.

The capacity to retain energy for an extended period of time distinguishes ammonia from other chemical compounds, as it can be transported over long distances at a relatively cheaper cost. Ammonia is likely more convenient to carry than liquid hydrogen, making organizations believe ammonia may be a better direct energy source. Companies may also potentially crack ammonia for its hydrogen component when needed.

Green ammonia is made using hydrogen and nitrogen, where hydrogen is obtained through water electrolysis, a process powered by renewable energy sources. Nitrogen can be extracted from the air using an air separation unit. Green ammonia can act as a replacement for "brown" ammonia, which is made from fossil fuels (typically natural gas). Green ammonia can be made from nitrogen and hydrogen in various ways; however, the Haber-Bosch process (which leverages a high-pressure process to induce a chemical reaction to produce ammonia) is reportedly the best commercially viable option. 

Disruptive impact

In 2020, multiple projects in Europe, the US, Australia, and Japan turned their focus toward using ammonia as a source of energy. As part of a USD $5 billion project, US company Air Products and Chemicals, Saudi firm ACWA Power, and NEOM, a developer building a carbon-free city in Saudi Arabia, have sought to build a green hydrogen facility on the Red Sea coast by 2025. The project aims to build solar cells to capture solar energy during the day and wind turbines to capture overnight winds to generate 4 gigawatts of electricity for the facility's water electrolysis plant.

Developers would supply the hydrogen into a traditional Haber-Bosch plant, which is planned to produce over 1 million tons of green ammonia per year. At 12.7 MJ/L, ammonia has a higher energy density than liquid hydrogen, at 8.5 MJ/L. It can also be stored at –33 °C, compared to liquid hydrogen at –253 °C, and it’s much less flammable than hydrogen, both factors which make transporting ammonia significantly easier and cheaper. These advantages could see green ammonia becoming a multi-billion-dollar industry in numerous regional markets over the coming decades. It is among the select number of fuels that the maritime industry may consider using as a source of renewable power to reduce its carbon emissions targets. 

However, the cost to produce green ammonia is two to four times more expensive than brown ammonia, it’s also more costly to produce than its competitor fuel green hydrogen, and some of the technologies required to produce it in large quantities are still in the early stages of development. These factors together may see the industry’s growth remain staggered throughout the 2020s. If different industries can leverage green ammonia at a lower cost than other forms of renewable power, especially in the heavy industries like steel manufacturing and forges, green ammonia can develop a market niche that companies may consider investing in.

Implications of green ammonia within the energy sector

Wider implications of green ammonia being used as a form of energy storage may include:

• The transition to green ammonia aiding several heavy industries in reducing their carbon footprint, leading to the achievement of their carbon emissions goals.


• Replacing liquid hydrogen with green ammonia as an energy source for the transportation industry, leading to workforce changes within the energy industry.


• Governments already investing in green hydrogen production and transportation infrastructure expanding their subsidies to include green ammonia production, reflecting a broader commitment to clean energy.


• The solar and wind industries receiving increased investment to construct infrastructure that feeds the Haber-Bosch process, promoting the sustainable production of green ammonia.


• Green ammonia's potential as a safer and more easily transported alternative to hydrogen encouraging a wider acceptance and adoption of clean fuels, impacting national and international energy strategies.


• Boosting domestic production of green ammonia leading to a reduction in energy imports, enhancing energy security and reducing dependency on foreign oil and gas.


• An increase in green ammonia production stimulating economic activity and job creation in regions with abundant renewable energy resources, promoting a more balanced regional development.


• The movement towards green ammonia driving the establishment of new standards and regulations, ensuring the safe production, transportation, and utilization of this clean energy source.


• The rise of green ammonia as a viable clean energy source prompting educational institutions to introduce new curricula, preparing the workforce for emerging opportunities within the renewable energy sector.


• The shift towards green ammonia acting as a catalyst for further research and development in clean energy technologies, forming a foundation for future advancements in the energy sector.

Questions to consider

• Will the benefits of developing plants for green ammonia outweigh the costs? 


• Will green ammonia be a viable form of energy storage in the future, particularly for the maritime industry? Or will other forms of energy storage take its place?