RINA’s latest white paper explains that achieving a low-carbon ammonia market demands an integrated strategy combining policy, regulation, financing, and technology.
According to the Organization, s. Governments, producers, and other stakeholders have already taken some steps to reduce emissions of ammonia production but they remain high, calling for greater ambition and coordinated action. Thus, RINA has pinpointed ten key priorities that pave the way for a sustainable, economically viable future for ammonia. These are as follows:
#1 Driving investment through a comprehensive policy portfolio
Low-carbon ammonia production requires significant capital and operational investments, often considered high-risk by private sector stakeholders. Governments play a critical role in creating favorable conditions through robust policy measures. These include production tax credits, grants, and green premiums, all of which de-risk early-stage projects.
Demand-side incentives, such as subsidies for low-carbon fertilizers and ammonia-fueled vessels, drive market adoption while achieving economies of scale. Incorporating low-carbon ammonia into national energy strategies, transparent certification systems, and carbon pricing mechanisms further strengthens investor confidence and accelerates market growth.
#2 Decarbonizing existing ammonia production
Retrofitting existing ammonia plants offers the quickest path to emission reductions. Technologies like carbon capture and storage (CCS) and electrified steam methane reforming (eSMR) can transform existing facilities by leveraging established infrastructure. Transitioning to renewable hydrogen as feedstock represents a direct route to sustainability.
#3 Reducing costs and scaling up
Ammonia’s future hinges on the scalability of green hydrogen and CCS value chains. Blue ammonia depends on affordable CO₂ capture, transport, and storage. Priorities include advancing cost-effective capture technologies, creating integrated CO₂ hubs, and ensuring a safe and permanent destination for captured CO₂. Green ammonia requires reducing hydrogen production costs by scaling up electrolyzer manufacturing and investing in renewable energy infrastructure.
Coordinated planning across stakeholders, regulatory clarity, and public-private partnerships will be key to building resilient supply chains capable of delivering ammonia at scale.
#4 Supporting innovation through R&D&I
A robust R&D&I ecosystem is vital to unlocking low-carbon ammonia’s potential. This involves enhancing technologies like electrolytic hydrogen powered by variable renewable energy, methane pyrolysis, advanced CCUS methods, and ammonia cracking for hydrogen recovery.
Key focus areas include improving the cost, efficiency, and durability of electrolyzers. For CCUS technologies, reducing costs in CO₂ capture and exploring innovative, energy-efficient capture methods are priorities.
Furthermore, large-scale demonstration projects play a pivotal role in validating these innovations and achieving economies of scale. Public and private sectors must collaborate to fund and scale promising technologies tailored to regional needs.
#5 Building ammonia transport and storage infrastructure
Developing effective ammonia transport and storage infrastructure is critical for widespread deployment. The challenge lies in coordinating systems that support ammonia, hydrogen, and carbon dioxide.
Existing systems, such as receiving ports, pipelines, and storage facilities, must be upgraded to handle ammonia’s unique properties safely and efficiently. In exporter countries, building new facilities—from large-scale ammonia production hubs to dedicated shipping terminals—is essential to meet growing global demand.
These installations should align with expected trade routes and include advanced safety systems to ensure reliable operation. Public-private partnerships and streamlined permitting processes will be essential.
#6 Expanding ammonia shipping and terminal infrastructure
Ammonia’s role in the transition to a net-zero energy system presents new opportunities for the maritime sector. Maritime transport is ideal for connecting exporter countries and high-energy-demand regions via emerging trade routes, particularly over long distances.
As demand for ammonia shipping grows, investment in specialized vessels and terminal facilities becomes essential. Shipping ammonia requires dedicated vessels equipped with advanced refrigeration and safety systems to handle its unique properties, including toxicity and flammability.
Additionally, ammonia terminals at key ports must be capable of safely managing large volumes, including storage, loading, and unloading, while adhering to stringent environmental and safety standards.
#7 Ensuring a holistic approach
Deploying low-carbon ammonia at scale demands an integrated, end-to-end strategy aligning policies, technologies, and collaborations across the value chain. The international nature of the green ammonia market underscores the need for cohesive planning and partnerships between governments, industries, research institutions, and civil society. Synchronizing production capacity, demand, and the infrastructure connecting them is vital to prevent supply chain bottlenecks and create a stable market.
Policies should address the full lifecycle of ammonia—production, transportation, storage, and end-use applications. International cooperation can facilitate infrastructure development, such as pipelines, shipping terminals, and storage facilities, ensuring seamless global trade. Lifecycle thinking and safety considerations must guide every decision to create a sustainable, efficient, and resilient ammonia economy.
#8 Facilitating a global market for low-carbon ammonia
Green ammonia has an inherently international nature, as it is often produced in regions with abundant and cheap low-carbon energy and exported to areas with high energy demand. Building a global market for low-carbon ammonia hinges on fostering international trade and cooperation. Harmonized standards for carbon intensity, safety, and quality are critical to ensure seamless trade and build stakeholder trust.
Governments can support this by integrating low-carbon ammonia into trade agreements, removing barriers, and establishing mechanisms like carbon border adjustment measures (CBAMs) to level the playing field. Collaborative efforts, such as bilateral agreements and regional partnerships, can accelerate investments in essential infrastructure—from export-import terminals to storage and distribution networks. Transparency is equally important.
Developing digital platforms to track production, certification, and trade flows will foster accountability and enable data-driven market strategies. Financial incentives, such as export credits and risk guarantees, can encourage participation, reduce uncertainties, and drive growth.
#9 Establishing standards and a global certification framework for low-carbon ammonia
Developing universally recognized certification standards for ammonia is crucial for building trust across the value chain. Transparent methodologies for assessing and reporting greenhouse gas emissions throughout ammonia’s lifecycle foster market alignment and comparability. Harmonization facilitates international trade and attracts investments by providing certainty about environmental credentials.
In addition to carbon intensity, robust technical and safety standards must ensure safe handling, storage, transport, and use of ammonia. Detailed protocols for equipment design, operational procedures, and emergency response mechanisms are critical, particularly in new applications. These standards should align with international frameworks, such as ISO and other regulatory bodies, to avoid fragmentation and support global adoption.
#10 Enhancing public awareness and engagement
Public perception can make or break the low-carbon ammonia economy. Despite its potential, ammonia’s storage and use as a fuel raises concerns about toxicity, particularly in densely populated areas. Addressing these safety issues through transparent regulatory frameworks and robust safety protocols is paramount to building public trust.
Effective communication strategies are needed to inform communities about ammonia’s role in a sustainable energy future. Governments and industry stakeholders must collaborate to promote awareness and dialogue, addressing misconceptions and emphasizing safety measures.
