The Problem with Green Ammonia

The sustainable production of alternative combustion fuels is at the forefront of many industry conversations around decarbonization. Green hydrogen and green ammonia are touted as potential replacements for fossil fuels, but their actual environmental benefits are questionable. The popularity of the concept of “clean” hydrogen has led to a new potential sustainable fuel derived from hydrogen: green ammonia.

This fact sheet investigates the pros and cons of green ammonia. Green ammonia is made using only renewables, while conventional ammonia is produced with fossil fuels. Nearly all of the ammonia produced today is conventional, but green ammonia projects are being proposed in an attempt to decarbonize its existing uses such as fertilizer production, and expand into new territories, like maritime shipping. The shipping industry emitted over 700 million metric tons of carbon dioxide in 2022, and industry players are betting on green ammonia to help them adhere to a recent carbon reduction mandate from the International Maritime Organization. Various green ammonia demonstration projects are moving forward around the world, despite uncertainties surrounding emissions, leakage rates, water usage, and pollution.