Blue Ammonia Market Poised for Transformational Growth with a CAGR of 55.2% during 2024-2031| DataM Intelligence

Blue Ammonia Market: Clean hydrogen-derived fuel gains traction across energy and fertilizer industries as nations race toward net-zero goals

CALIFORNIA, CA, UNITED STATES, May 30, 2025 /EINPresswire.com/ -- Global Blue Ammonia Market reached US$ 2.3 billion in 2022 and is expected to reach US$ 76.7 billion by 2031, growing with a CAGR of 55.2% during the forecast period 2024-2031.

The global market for blue ammonia a low-carbon fuel produced by converting natural gas to ammonia with carbon capture and storage (CCS) is experiencing a rapid surge in momentum. As countries intensify their climate commitments and seek cleaner alternatives to fossil fuels, blue ammonia is emerging as a key player in the transition to net-zero energy systems.

Get Detailed Premium Sample PDF: https://www.datamintelligence.com/download-sample/blue-ammonia-market

What Is Driving the Market?
Blue ammonia is derived from traditional ammonia production methods but with an essential difference: carbon dioxide emissions generated during hydrogen production are captured and stored underground, drastically reducing the carbon footprint. This makes blue ammonia a highly attractive fuel for power generation, maritime shipping, and clean fertilizer production.

The market is expected to grow significantly through 2025, driven by government incentives for decarbonization, technological improvements in carbon capture, and rising global demand for sustainable fuels.

Regional Outlook: Momentum Across Continents:

North America
The United States is emerging as a leading market for blue ammonia, thanks to robust infrastructure, aggressive clean energy policies, and investment in CCS technology. Multiple large-scale blue ammonia projects are underway in Texas and Louisiana, strategically located near petrochemical hubs and export terminals.

Asia-Pacific
Asia, particularly Japan and South Korea, is positioning blue ammonia as a key element in future energy imports. These countries are seeking partnerships with Middle Eastern and U.S. producers to secure long-term ammonia supply for clean power generation.

Middle East
Nations such as Saudi Arabia and the UAE are pivoting from oil exports to hydrogen and ammonia exports. Leveraging abundant natural gas reserves and solar energy, they are investing heavily in blue and green ammonia projects to future-proof their economies.

Industry Leaders and Project Developments:

Several energy giants and fertilizer producers are actively shaping the future of the blue ammonia market:
• Saudi Aramco, in partnership with SABIC, is scaling up blue ammonia exports to Japan.
• ExxonMobil and CF Industries are jointly developing a CCS-enabled ammonia production facility in the U.S.
• OCI NV and ADNOC announced a collaboration to produce and export low-carbon ammonia from the UAE.

These companies are setting the standard for how carbon-intensive industries can adapt to climate-friendly production methods without sacrificing economic performance.

Key Market Drivers:
• Climate Policies & Net-Zero Pledges: Governments are tightening emissions targets and funding decarbonization infrastructure, making blue ammonia an increasingly attractive alternative.
• Rising Hydrogen Demand: As hydrogen becomes central to clean energy discussions, blue ammonia offers a storable, transportable form of hydrogen fuel.
• Industrial Decarbonization: Sectors like steel, cement, and chemicals are evaluating blue ammonia as a route to reducing operational emissions.

Latest News from USA:

In April 2025, the U.S. Department of Energy allocated over $1 billion in funding for carbon capture projects, directly benefiting blue ammonia facilities under development. CF Industries, in partnership with ExxonMobil, received federal backing for its ammonia production site in Louisiana, which is projected to start operations by 2027.

Additionally, the U.S. Environmental Protection Agency (EPA) released a new framework recognizing blue ammonia as a low-carbon fuel under the Clean Energy Standard, opening doors for more widespread adoption in power generation and heavy industry.

Latest News from Japan:

In March 2025, Japan’s Ministry of Economy, Trade and Industry (METI) signed a long-term fuel agreement with Saudi Arabia to import 1 million tons of blue ammonia annually starting in 2026. The fuel will be used primarily in thermal power stations, gradually replacing coal and contributing to Japan’s 2050 carbon neutrality roadmap.

Furthermore, Japanese firm Mitsubishi Corporation announced a strategic partnership with U.S.-based OCI Global to co-develop a blue ammonia export corridor, ensuring stable supply for Japanese utilities.

Future Outlook:
As clean energy goals become non-negotiable, blue ammonia is emerging as a viable bridge between traditional fossil fuels and zero-emission technologies. Its ability to integrate with existing infrastructure, combined with advances in carbon capture, positions it as a top contender in the global energy mix of the next decade.

To access the full report, visit: https://www.datamintelligence.com/buy-now-page?report=blue-ammonia-market

Stay informed with the latest industry insights-start your subscription now: https://www.datamintelligence.com/reports-subscription

Looking for Related Reports:

Liquid Chromatography Mass Spectrometry Market Share 2025-2032

Green Ammonia Market Share 2024-2031

Sai Kumar
DataM Intelligence 4market Research LLP
877-441-4866
sai.k@datamintelligence.com
Visit us on social media:
LinkedIn
X