Blue Ammonia Market Report 2026

The blue ammonia market size has grown strongly in recent years. It will grow from $14.73 billion in 2025 to $15.5 billion in 2026 at a compound annual growth rate (CAGR) of 5.2%. The growth in the historic period can be attributed to natural gas based ammonia production, early CCS projects, fertilizer industry demand, energy security concerns, industrial hydrogen usage.

The blue ammonia market size is expected to see strong growth in the next few years. It will grow to $18.96 billion in 2030 at a compound annual growth rate (CAGR) of 5.2%. The growth in the forecast period can be attributed to hydrogen economy growth, decarbonization mandates, expansion of clean power generation, investment in CCS infrastructure, growth in ammonia fueled transport. Major trends in the forecast period include rising adoption of low carbon ammonia, increasing use as hydrogen carrier, growing investment in carbon capture technologies, expansion of clean fuel applications, higher focus on energy transition infrastructure.

The increasing demand for low-carbon fuels is expected to propel the growth of the blue ammonia market going forward. Low-carbon fuels are energy sources that generate significantly lower carbon dioxide emissions than conventional fossil fuels, thereby contributing less to global warming and climate change. Their demand is rising due to the growing need to curb greenhouse gas emissions and mitigate the impacts of climate change. Blue ammonia is produced by converting natural gas into hydrogen while capturing the resulting carbon dioxide, making it a valuable low-carbon fuel option. For instance, in January 2024, according to the International Energy Agency, a France-based intergovernmental organization, global biofuel demand is projected to increase by 38 billion liters between 2023 and 2028, representing nearly a 30% rise compared to the previous five years. Overall, total biofuel demand is expected to grow by 23%, reaching 200 billion liters by 2028. Therefore, the rising demand for low-carbon fuels is driving the growth of the blue ammonia market.

Major companies operating in the blue ammonia market are developing innovative solutions such as final investment decisions (FID) to expand low-carbon ammonia production capacity. A final investment decision (FID) refers to the formal approval by a company or consortium to move forward with full-scale funding and execution of a major project after completing all feasibility studies, engineering reviews, cost evaluations, and risk assessments. For instance, in April 2025, JERA Co., Inc., a Japan-based energy provider, in partnership with CF Industries Holdings, Inc., a US-based fertilizer and chemical manufacturer, and Mitsui & Co., Ltd., a Japan-based global trading and investment company, announced a Final Investment Decision (FID) for the Blue Point low-carbon ammonia production project. The Blue Point facility is designed to produce around 1.4 million metric tons of ammonia annually, using natural gas combined with carbon capture and storage (CCS) technology to lower CO₂ emissions. The project is estimated to cost approximately USD 4 billion, with JERA holding a 35% equity stake and agreeing to offtake a portion of the ammonia produced. Commercial operations are expected to begin around 2029, positioning Blue Point as a central component of JERA’s global clean-energy and decarbonization strategy.

In December 2023, CF Industries Holdings Inc., a US-based nitrogen fertilizer producer, acquired the ammonia production unit of Incitec Pivot Ltd. (IPL) for $1.675 billion. This acquisition aims to strengthen CF Industries’ leadership in ammonia production by integrating IPL’s Waggaman facility and establishing a supply agreement with Dyno Nobel to maintain a consistent ammonia distribution channel. Incitec Pivot Ltd. is an Australia-based chemical manufacturing company.

Major companies operating in the blue ammonia market are Saudi Arabian Oil Group, ExxonMobil Corporation, Shell PLC, Uniper SE, Koch Industries Inc., ITOCHU Corporation, BASF SE, Siemens Energy AG, Saudi Basic Industries Corporation, Thyssenkrupp AG, Nutrien Ltd., Linde PLC, Mitsubishi Heavy Industries Ltd., Air Liquide S.A., Yara International ASA, Ma’aden, CF Industries Holdings Inc., TechnipFMC PLC, EuroChem Group AG, Sumitomo Mitsui Construction Co. Ltd., Haldor Topsoe A/S, Engie S.A., Qatar Fertiliser Company (P.S.C.), ADNOC Group, Casale S.A.

North America was the largest region in the blue ammonia market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the blue ammonia market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the blue ammonia market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The blue ammonia market consists of sales of clean energy carriers, emissions credits or carbon offsets, technology, and services for carbon capture and storage (CCS). Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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