Ammonia Crackers Market - A Global and Regional Analysis: Focus on Cracker Type, Capacity, End User, and Region - Analysis and Forecast, 2023-2032

Increased Adoption of Ammonia Crackers in End-User Industries

Hydrogen and hydrogen compounds such as ammonia play a key role in green transition, replace natural gas, and support a sustainable future. Moreover, hydrogen facilitates use as an economically viable energy vector in various applications, including transport and industrial applications, owing to its low volumetric density even when compressed to high pressures or liquefied. With minimal specialized transport infrastructure, hydrogen has been created close to where it is delivered and utilized. Moreover, synthetic fuels produced from hydrogen can be used in existing infrastructure, though they might need to be expanded. To overcome this challenge, various hydrogen carriers, such as ammonia in liquid form, are carbon-free and readily dispatchable hydrogen carriers, allowing the cost-effective storage and distribution of large quantities of energy. Furthermore, according to the International Energy Association (IEA), in some regions, the cost of imported hydrogen in the form of ammonia is lower than transporting it as hydrogen. Although ammonia production, handling practices, and supply chains are mature and well-established, efficient processes for the recovery of hydrogen from ammonia must be developed, as efficient ammonia cracking technologies that can generate pure hydrogen remain in their infancy.

Market Lifecycle Stage

The small-scale ammonia crackers are in their mature stage, while large-scale ammonia crackers are in their developing stage. The ecosystem of the ammonia crackers market comprises primary ammonia crackers manufacturers, green hydrogen and green ammonia producers, technology providers, and end users. The market is still developing, with Asia-Pacific and Europe at the forefront, followed by other regions such as North America, China, Rest-of-the-World, and the U.K.

Industrial Impact

• The ammonia crackers for hydrogen production represent a significant step toward achieving a carbon-neutral energy sector. By leveraging this technology, the reliance on fossil fuels can be reduced. It can also mitigate climate change impacts and promote a cleaner and more sustainable energy landscape. As research and development efforts continue to advance, ammonia crackers have the potential to revolutionize the way of hydrogen production, distribution, and utilization, unlocking new possibilities for a greener and more prosperous future.
• The major regions anticipated to use ammonia crackers are Asia-Pacific and Japan and Europe. Globally, there are numerous partnerships between manufacturers, technology providers, and end users of ammonia crackers.

Impact of COVID-19

The COVID-19 pandemic has had an adverse impact on most of the sectors globally, owing to countrywide lockdown, temporary shutdown of production facilities, and slowdown of the global economy. The pandemic has shown a severe impact on heat treatment, metal, mobility, and oil and gas, among other industries. Furthermore, the COVID-19 pandemic-related global lockdown led to production halts and disruptions in supply chains, manufacturing, and deployment activity, all of which had a detrimental effect on the market for ammonia crackers in 2020. Furthermore, the transportation industry showed a negative growth trend during COVID-19.

Market Segmentation

Segmentation 1: by End User

• Heat Treatment
• Metal Industry
• Oil and Gas
• Power Generation
• Mobility
• Others

Ammonia crackers are expected to have a high adoption rate in mobility and power generation, among other applications, over the forecast period 2023-2032, owing to the increased initiatives by the mobility industry related to decarbonization.

Segmentation 2: by Cracker Type

• Centralized
• Decentralized

Based on cracker type, the ammonia crackers market is estimated to be led by the decentralized segment during the forecast period of 2023-2032.

Segmentation 3: by Capacity

• Small Scale (<250 Nm3/hr)
• Medium Scale (250-1,000 Nm3/hr)
• Large Scale (>1,000 Nm3/hr)

Based on capacity, the small scale segment led the ammonia crackers market in 2022 and was the largest segment owing to growing demand from end-use industries such as the metal industry, heat treatment, and mobility.

Segmentation 4: by Region

• North America - U.S., Canada, and Mexico
• Europe - Germany, France, Italy, Spain, Russia, and Rest-of-Europe
• China
• U.K.
• Asia-Pacific and Japan - Japan, India, South Korea, and Rest-of-Asia-Pacific and Japan
• Rest-of-the-World - Middle East and Africa and South America

In the global ammonia crackers market, Asia-Pacific and Japan and Europe are anticipated to gain traction in terms of ammonia crackers’ production, owing to the increased import of green ammonia as a hydrogen carrier in the regions.

Recent Developments in Ammonia Crackers Market

• In April 2021, Uniper undertook the initiative "Green Wilhelmshaven" with the intention of creating a prominent hydrogen hub in Wilhelmshaven, Germany. To support this endeavor, the company is currently engaged in developing a feasibility study. As part of the plan, Uniper intends to construct an import terminal dedicated to green ammonia. The proposed terminal will feature an "ammonia cracker" designed for the production of green hydrogen. Additionally, the terminal will be seamlessly integrated into the envisaged hydrogen network.
• In June 2023, Proton Ventures undertook diverse studies related to ammonia cracking on behalf of clients and maintains engagement in multiple research consortia. Centralized ammonia cracker solutions, designed for pure hydrogen production, exhibit functional parallels with natural gas processing plants utilized for hydrogen production. Apart from this, efforts are underway to develop decentralized ammonia cracker solutions, which do not invariably necessitate complete conversion and purification of hydrogen. This approach enhances system energy efficiency and cost-effectiveness. The upcoming objective entails the construction of a commercial pilot for ammonia cracking. This represents a critical intermediate phase in the industry's progression toward establishing hydrogen production facilities on a global scale. Proton Ventures conducted a comprehensive front-end engineering and design (FEED) study for a renewable ammonia facility in a closely coordinated effort with Switzerland's Casale S.A.
• In December 2021, Novatek and Uniper entered into a term sheet agreement outlining the provisions for the extended supply of substantial quantities of low-carbon ammonia. This supply arrangement is intended to serve Uniper's markets in both Germany and North-West Europe. Uniper is in the process of planning an ammonia import terminal situated in Wilhelmshaven. This facility is envisioned to encompass a storage infrastructure alongside a cracker that operates using green power sources.
• In September 2022, Syzygy Plasmonics, LOTTE Chemical, LOTTE Fine Chemical, and Sumitomo Corporation of Americas collaboratively announced their partnership to implement and test Syzygy's fully electric, photocatalytic ammonia cracking reactor on a commercial scale. The reactor is set to be installed and operationalized in the latter part of 2023 at LOTTE Chemical's site in Ulsan, South Korea.

Demand - Drivers and Limitations

The following are the demand drivers for the ammonia crackers market:

• Increasing Awareness Regarding Green Hydrogen
• Increased Adoption of Ammonia Crackers in End-User Industries
• Need for Effective Hydrogen Carrier

The market is expected to face some limitations due to the following challenges:

• Toxicity of Liquid Ammonia and Trace Amounts of Ammonia in Hydrogen after Decomposition
• High Cost of Green Hydrogen Production and Requirement of Significant Amount of Energy in Cracking

How can this report add value to an organization?

Product/Innovation Strategy: The product segment helps the reader understand the different cracker types and capacities involved in the ammonia crackers market. The cracker type segment has been segmented into centralized and decentralized. The capacity segment has been segmented into small scale (<250 Nm3/hr), medium scale (250-1,000 Nm3/hr) and large scale (>1,000 Nm3/hr). Moreover, the study provides the reader with a detailed understanding of the ammonia crackers market based on end user, including heat treatment, metal industry, oil and gas, power generation, mobility, and others. The increasing adoption of ammonia crackers in power generation and mobility sectors is expected to fuel market growth in the future.

Growth/Marketing Strategy: The ammonia crackers market has seen major development by key players operating in the market, such as business expansions, partnerships, collaborations, mergers and acquisitions, and joint ventures. The favored strategy for the companies has been business partnerships to strengthen their position in the ammonia crackers market. For instance, in January 2023, thyssenkrupp AG and ADNOC signed a memorandum of understanding (MoU) to explore a long-term partnership to create new markets for hydrogen and promote global clean energy value chains. The agreement focuses on a joint project development of large-scale ammonia cracking, which is used to extract hydrogen from ammonia after transportation.

Competitive Strategy: Key players in the ammonia crackers market analyzed and profiled in the study involve ammonia cracker producers and the overall ecosystem. Moreover, a detailed competitive benchmarking of the players operating in the ammonia crackers market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, acquisitions, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.

Key Market Players and Competition Synopsis

Ammonia has already established itself as a well-developed method for storing hydrogen. Storage tanks designed for liquefied petroleum gas (LPG) that share similarities in design and function with ammonia tanks have been successfully built, capable of accommodating capacities up to 130,000 m3. To put it into perspective, a single tank of this magnitude could store approximately 0.5 terawatt-hours (TWh) of liquid ammonia. This storage solution is not constrained by geographical limitations and can be conveniently expanded in a modular manner wherever necessary. Ammonia crackers play a key role in end-user industries, including the metal industry, heat treatment, power generation, mobility, oil and gas, and others. In 2022, the metal industry led the global ammonia crackers market; however, power generation and mobility industries are expected to gain traction over the forecast period with increased installation of large-scale ammonia crackers.

Some of the prominent producers of ammonia crackers are:

Company Type 1 (by Capacity): Small Scale (<250 Nm3/hr)

• Lindberg/MPH
• Borel Swiss
• Gasbarre Products, Inc.
• Suzhou Since Gas Technology Co., Ltd.
• Nuberg GPD
• MVS Engineering Pvt. Ltd.
• Others

Company Type 2 (by Capacity): Medium Scale (250-1,000 Nm3/hr)

• Siemens Energy
• Air Liquide
• KBR Inc.
• AMMPOWER
• Duiker Combustion Engineers
• Suzhou Since Gas Technology Co., Ltd.
• AMOGY Inc.
• MVS Engineering Pvt. Ltd.
• Others

Company Type 3 (by Capacity): Large Scale (>1,000 Nm3/hr)

• Haldor Topsoe A/S
• Siemens Energy
• Air Liquide
• thyssenkrupp AG
• KBR Inc.
• Duiker Combustion Engineers
• Others

Various players are involved in the market, which has been covered in different sections of the report.