Australia Ammonia Market Research Report, 2030

The ammonia market in Australia is expected to undergo a profound transformation by 2030, reflecting the growing convergence between traditional industrial needs and the global push for cleaner, more sustainable energy solutions. Historically, ammonia production in Australia has been primarily aligned with agricultural demands, where it plays a critical role in the manufacture of nitrogen-based fertilizers. Given the vast scale of Australian agriculture and its export-oriented nature, ammonia has been a foundation of the rural economy for decades. However, with shifting energy paradigms and Australia's abundant renewable energy resources, the country is now positioning itself as a future hub for low-carbon ammonia production. This is not merely a strategic economic move but also a reflection of Australia’s broader commitments under global climate frameworks, where green ammonia is seen as a vital enabler for decarbonizing hard-to-abate sectors. The increasing attention on hydrogen as a key energy carrier further complements the growth of ammonia, particularly as ammonia can serve as a convenient hydrogen carrier and direct fuel source. Therefore, the Australian ammonia market by 2030 is expected to straddle two worlds: maintaining strong domestic utility in agriculture and chemicals, while also rapidly scaling up to meet international energy transition needs. The investments currently being made into pilot projects, green hydrogen hubs, and new port infrastructure highlight the government’s and private sector’s shared ambition to make Australia a global leader in clean ammonia technologies. Such developments are anticipated to drive significant opportunities across the entire ammonia value chain, from production and storage to transport and end-use application diversification. According to the research report "Australia Ammonia Market Research Report, 2030," published by Actual Market Research, the Australia Ammonia Market is anticipated to grow at more than 6.84% CAGR from 2025 to 2030. Several critical forces are currently shaping the evolution of the ammonia market in Australia and will continue to do so through 2030. One of the most profound shifts is the rapid technological innovation in production methods, where traditional steam methane reforming is giving way to cleaner alternatives like renewable-powered electrolysis and methane pyrolysis. As global stakeholders prioritize decarbonization and carbon-neutral solutions, Australia’s ammonia producers are under rising pressure to integrate carbon capture and storage technologies or transition to green production methods altogether. Meanwhile, internal drivers such as the need for agricultural efficiency and sustainable urban development are reinforcing the ongoing demand for ammonia and its derivatives. New applications are also emerging in wastewater treatment, refrigeration, mining, and even as a fuel source for marine and heavy-duty transport sectors. Australia’s unique geographical advantage, with proximity to high-demand Asian markets such as Japan and South Korea, is prompting a strategic pivot towards export-oriented ammonia production, especially green ammonia. Several landmark projects, including large-scale solar ammonia plants and renewable energy export terminals, are already in the pipeline. However, challenges remain, particularly concerning the scaling of green ammonia technologies to commercial viability, ensuring competitive production costs, and overcoming regulatory and logistical bottlenecks.

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Agriculture remains the largest traditional consumer of ammonia, particularly for the production of fertilizers such as urea, ammonium nitrate, and ammonium sulfate, which are essential for maintaining and enhancing soil productivity across Australia’s sprawling croplands. As Australia’s agricultural exports continue to grow, so too does the demand for efficient and sustainable fertilizer solutions, sustaining ammonia's stronghold in this sector. Beyond agriculture, chemical manufacturing is a major consumer, with ammonia serving as a critical input for explosives used in Australia’s robust mining sector, which underpins much of the national economy. In the food and beverage industry, ammonia is increasingly valued for its role as a refrigerant, thanks to its energy efficiency and low environmental impact compared to synthetic alternatives. Wastewater treatment plants also rely heavily on ammonia, particularly in biological nutrient removal processes, helping to ensure compliance with increasingly stringent environmental regulations. Other sectors, including mining, metallurgy, construction, and power generation, are exploring new ammonia applications, particularly in emission control technologies and as a clean-burning energy source. These diverse and expanding uses underline ammonia’s growing strategic importance in Australia’s economic landscape, ensuring that its role will not diminish even as production technologies and market priorities evolve towards greener outcomes. The cumulative demand from these sectors highlights ammonia’s versatility, resilience, and potential as a bridge between today’s industrial needs and tomorrow’s clean energy ambitions. Australian ammonia market by chemical form further highlights important trends in industrial usage and future growth areas. Anhydrous ammonia, which is pure ammonia in a gaseous form under pressure, remains indispensable for large-scale fertilizer production and industrial applications, thanks to its high nitrogen content and cost-efficiency. Agricultural industries across Australia, particularly those operating in remote and expansive areas, favor anhydrous ammonia for its immediate efficacy and economic advantages, despite its more complex storage and handling requirements. Meanwhile, aqueous ammonia, where ammonia is dissolved in water to form a less concentrated solution, is gaining popularity in sectors that prioritize operational safety and easier regulatory compliance, such as municipal wastewater treatment, certain food processing operations, and smaller industrial installations. The safer handling properties of aqueous ammonia make it a preferred choice where there is heightened sensitivity around toxic gas emissions and on-site safety protocols. As Australia’s urbanization continues and industrial safety standards tighten, it is anticipated that aqueous ammonia will see a faster growth rate compared to its anhydrous counterpart. Nevertheless, given the scale and nature of agricultural and mining demands, anhydrous ammonia will likely maintain a dominant share of the market by volume. The coexistence of these two chemical forms, catering to distinct operational priorities and risk profiles, offers a clear illustration of how diverse user needs shape product selection and market evolution. The production method landscape for ammonia in Australia is currently undergoing a remarkable transformation as the sector adapts to global sustainability imperatives and local resource advantages. Historically, ammonia production in Australia has been dominated by grey ammonia, produced via natural gas-based steam methane reforming, and brown ammonia, associated with coal gasification, particularly in areas with abundant coal resources. However, the environmental downsides of carbon-intensive methods are driving a fundamental shift towards more sustainable alternatives. Blue ammonia, which captures and stores the carbon emissions associated with grey production, is emerging as an important transitional technology, with several pilot and commercial-scale projects under development. At the same time, green ammonia, produced using renewable electricity to split water molecules via electrolysis, is viewed as the ultimate goal for Australia's ammonia industry, perfectly aligning with the country's immense solar and wind energy potential. Massive projects in Western Australia and Queensland are aiming to produce green ammonia at export-scale levels, targeting energy-hungry nations committed to zero-carbon energy imports. Turquoise ammonia, based on methane pyrolysis that produces solid carbon by-products instead of carbon dioxide emissions, is also receiving growing attention for its potential to offer low-emission ammonia at competitive costs.

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Nikita Jabrela

Business Development Manager

Considered in this report • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Ammonia Market with its value and forecast along with its segments • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Production Method • Grey/Brown • Blue • Green • Turquoise

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By End-Use Industry • Agriculture • Chemical Manufacturing • Food & Beverage • Wastewater Treatment • Others (Mining & Metallurgy, Construction, Power Generation, etc..) By Chemical Form • Anhydrous Ammonia • Aqueous Ammonia The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.