UNITED STATES BLUE AMMONIA MARKET FORECAST 2024-2050

Additionally, the U.S. Department of the Treasury and Internal Revenue Service (IRS) have issued proposed regulations for the Clean Hydrogen Production Credit established by the Inflation Reduction Act (IRA). This tax credit for hydrogen will play a pivotal role in fostering a clean hydrogen industry, especially significant for mitigating emissions in challenging-to-decarbonize sectors like heavy industry and transportation.

The United States blue ammonia market segmentation includes technology and application. The application segment includes power generation, hydrogen carrier, agriculture, maritime transport, and other applications.

Blue ammonia, containing essential nitrogen for plant growth, serves as a fertilizer. Currently, ammonia, derived mainly from fossil fuels, is the world’s most widely used nitrogen fertilizer, contributing to greenhouse gas emissions. To diminish the carbon footprint in agriculture, the sector can adopt blue ammonia, known for its lower emissions compared to traditional ammonia. This alternative is suitable for a wide range of crops, including corn, wheat, rice, soybeans, and vegetables, and can be employed in agricultural techniques like nitrification inhibition to reduce soil emissions of nitrous oxide, a potent greenhouse gas. Furthermore, blue ammonia contributes to improved soil health and crop quality due to its lower acidity and corrosiveness compared to conventional ammonia.

While the undeniable potential of blue ammonia in agriculture, maritime transport, hydrogen storage, and power generation is acknowledged, its versatility goes beyond these established avenues. Blue ammonia has the capability to generate various chemicals such as fertilizers, plastics, and pharmaceuticals, potentially lowering the carbon footprint of these sectors. Crucial for various chemicals and polymers, ammonia derivatives like methylamines, ethylamines, and cyanuric acid can be produced using blue ammonia with a reduced carbon footprint.

Ammonia-based solvents are widely used in the purification and extraction of active ingredients for various pharmaceuticals. The incorporation of blue ammonia in these solvents contributes to an overall reduction in the carbon footprint of pharmaceutical production. Regardless of its color, ammonia plays a vital role in producing the antibiotic chloramphenicol. The substitution of grey ammonia with blue ammonia renders the entire production process more sustainable.

Some of the key firms in the United States blue ammonia market are CF Industries, ExxonMobil, Ma’aden, etc.

CF Industries, a leading company in the manufacturing of ammonia for fertilizer, clean energy, and other industrial applications, faces a dilemma. While ammonia proves beneficial for higher yields in agriculture, it is accompanied by a significant carbon footprint. In an effort to align with the Paris Agreement, CF Industries is strategically working towards decarbonizing its ammonia production, aiming to generate both blue and green ammonia. Recognizing potential opportunities beyond agriculture, the company envisions low-carbon and green ammonia production in sectors such as marine transportation and power generation. Notably, CF Industries made notable progress towards blue ammonia in 2022.

Further, the company’s ambitious plans include the production of blue ammonia at its Donaldsonville Complex, scheduled to be operational by 2025. An essential step in this direction involves a carbon capture and sequestration agreement with ExxonMobil, targeting the capture of approximately 2 million tons of carbon within the facility. CF Industries is headquartered in Northbrook, Illinois.