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Green Ammonia: The Fuel of the Future Transforming Global Agriculture and Clean Energy Transition

by Economy India
November 14, 2025
Reading Time: 7 mins read
Green Ammonia: The Fuel of the Future Transforming Global Agriculture and Clean Energy Transition

Green Ammonia: The Fuel of the Future Transforming Global Agriculture and Clean Energy Transition

SHARESHARESHARESHARE
As the world races toward low-carbon pathways, green ammonia emerges as a game-changing solution for food security, energy resilience, and sustainable development


New Delhi (Economy India): Ammonia-based nitrogen fertilisers have long been the invisible engine powering global agriculture. For more than a century, synthetic ammonia produced through the Haber–Bosch process has helped farmers meet the nitrogen needs of crops, enabling the world to feed billions. Today, nearly 50% of global food production is directly linked to ammonia fertilisers.

But this essential input comes with a heavy environmental and economic cost. Conventional ammonia production is among the most carbon-intensive industrial processes on the planet, consuming massive amounts of fossil fuels—mainly natural gas—and emitting nearly 1–2% of global greenhouse gases.

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At a time when countries face growing climate commitments, volatile energy prices, and rising food insecurity, green ammonia—produced using renewable energy—has emerged as a transformative alternative that promises to reshape agriculture, boost rural incomes, and accelerate the global clean energy transition.

Green Ammonia: The Fuel of the Future Transforming Global Agriculture and Clean Energy Transition
Green Ammonia: The Fuel of the Future Transforming Global Agriculture and Clean Energy Transition

A System Under Stress: Fossil Fuels, Volatile Prices, and Global Dependency

Traditional ammonia production relies heavily on natural gas as a feedstock and energy source. This dependence exposes farmers and markets to severe risks, especially during global fuel price surges.

  • Regions in Africa and South Asia remain heavily dependent on imported fertilisers.
  • Transport and logistics account for 30–50% of fertiliser retail cost in many developing countries.
  • Fluctuations in gas prices often translate into lower crop yields, increased production costs, and higher poverty rates.

The result is a fragile system where nearly 1.8 billion people depend indirectly on fossil fuels for food production.

Green Ammonia: A Sustainable Breakthrough

As governments, scientists, and industry leaders seek to break this dependency, multiple low-carbon ammonia pathways have emerged:

1. Carbon Capture Enabled ‘Blue Ammonia’

  • Retrofitting existing plants with CCS (carbon capture & storage) can reduce emissions by up to 70%.
  • However, it still relies on fossil fuels, limiting long-term sustainability.

2. Electrolytic ‘Green Ammonia’

  • Renewable electricity (solar/wind) is used to split water into hydrogen.
  • This hydrogen then combines with nitrogen to produce ammonia.
  • Green ammonia reduces greenhouse gas emissions by near 100%.

Challenges:

  • Currently 2–3 times more expensive than conventional ammonia.
  • Requires significant renewable power capacity, land, and water.

The Rise of Distributed & Decentralised Green Ammonia Production

One of the most promising innovations is small-scale, modular, decentralised ammonia plants.
Instead of massive centralised factories, these plants:

  • Run on local solar/wind power
  • Operate at lower pressures
  • Can be deployed closer to farms
  • Reduce transport costs
  • Offer stable local supply
  • Allow customised nutrient blends based on soil needs

For regions where fertiliser use is below the global average, such as eastern India, Africa, and several developing economies, these decentralised systems could prove revolutionary.

Experts believe this approach could:

  • Reduce price volatility
  • Strengthen local economies
  • Reduce fossil fuel dependence
  • Lower agriculture’s carbon footprint

Industry Voices: The Push Toward Decarbonisation

Amit Gupta of Agrifields DMCC, a recognised name in the global agribusiness sector, has underscored the urgency of decarbonising fertiliser production.

According to Gupta:

“Green ammonia represents a crucial alignment between productivity and environmental responsibility. In markets where farmers already struggle with high input costs, clean fertiliser solutions will determine future resilience.”

He further emphasises that achieving this vision will require coordinated efforts:

  • Investment in renewable power
  • Policy support and subsidies
  • Advances in nitrogen-use efficiency
  • Collaboration across the fertiliser, energy, and agricultural sectors

Gupta notes that green ammonia is no longer a distant possibility but an emerging necessity, especially as countries work toward net-zero commitments.

Green Ammonia: The Fuel of the Future Transforming Global Agriculture and Clean Energy Transition
Green Ammonia: The Fuel of the Future Transforming Global Agriculture and Clean Energy Transition

Beyond Fertilisers: Green Ammonia’s Role in the Energy Transition

Globally, green ammonia is also being explored as:

  • A carbon-free fuel for shipping
  • A hydrogen carrier for clean energy transport
  • A potential replacement for bunker fuel
  • A key component in future energy storage systems

Countries like Japan, Australia, the EU states, and the Middle East are already developing green ammonia export corridors, signalling its expanding economic relevance.

Bridging Agriculture and Climate Action

Green ammonia’s transformative potential lies in its ability to:

  • Increase farm productivity
  • Stabilise global food supply
  • Reduce emissions drastically
  • Support energy transition goals
  • Strengthen rural economies
  • Promote technological innovation

But experts caution that the transition will take time. Costs must fall, supply chains need redesigning, and renewable energy capacity must expand significantly.

Despite challenges, momentum is building.

A New Era for Fertiliser and Clean Energy

Green ammonia stands at the crossroads of agriculture, climate action, and industrial transformation. As governments push for climate-friendly policies and farmers seek reliable, affordable fertiliser supplies, low-carbon ammonia is rapidly emerging from “niche technology” to mainstream strategy.

For industry leaders like Amit Gupta and global agribusiness innovators, the future of fertiliser is clear:
Green ammonia is not just an alternative—it is the next evolutionary step.

If done thoughtfully, this shift could ensure that the fertiliser feeding tomorrow’s population is as sustainable as the crops it helps grow.

(Economy India)

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Source: Economy India
Tags: Ammonia production emissionsClean energy transition agricultureDecarbonising fertilizer industryEconomy IndiaFuture of ammoniaGreen AmmoniaGreen ammonia technologyLow-carbon fertilizer
Economy India

Economy India

Economy India is one of the largest media on the Indian economy. It provides updates on economy, business and corporates and allied affairs of the Indian economy. It features news, views, interviews, articles on various subject matters related to the economy and business world.

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