Green ammonia, explained

Ammonia is a simple molecule made from nitrogen and hydrogen. 

For over a century, it has been used to produce fertilisers, helping farmers grow more food for a growing global population.

Now, as the world works towards net zero emissions, ammonia is emerging as a promising low-carbon solution.

But to realise this potential, it needs to be produced differently.

What is green ammonia?

Green ammonia is ammonia produced without carbon emissions, using renewable energy. 

The process combines nitrogen from air with hydrogen from water electrolysis (green hydrogen) at high temperatures and pressures to create ammonia.

By contrast, conventional ammonia production relies on hydrogen from fossil fuels and uses coal or gas to generate the high temperatures and pressures needed. 

The result is that for every tonne of conventional ammonia produced, 2.4 tonnes of carbon are released into the atmosphere.   

Other methods of producing green ammonia are being developed. 

They similarly combine air and water, but instead of high temperatures and pressures, use electrochemical or plasma activation processes to create ammonia.

In either case, switching to renewable energy and hydrogen from water makes the production process carbon-free.    

Why is green ammonia important?

Green ammonia matters for several reasons. 

A growing global population is driving rising demand for fertilisers – and therefore ammonia. 

At the same time, the world needs to reach net zero emissions; green ammonia is a way to meet both needs.

It can also help decarbonise maritime shipping by providing a carbon-free fuel.

In Australia, green ammonia presents additional opportunities. 

More than half of the country’s ammonia is used to produce explosives for mining. Shifting to green ammonia can help reduce emissions from this sector.  

It can also help build demand for green hydrogen, supporting the development of supply chains for another important, but emerging, low-carbon solution. 

How much green ammonia is produced now? 

Current production of green ammonia remains extremely low – less than 1 per cent of global production is considered green. 

The technologies needed are not yet commercially viable, and costs are higher. 

At the moment, green ammonia is around two to six times more expensive to produce than conventional ammonia.

At the same time, conventional ammonia is not immune to price spikes.

Recent geopolitical instability has driven sharp increases in ammonia and fertiliser prices, along with supply shortages.  

Australia imports most of its ammonia, making it particularly exposed to these risks. 

What’s next? 

Australia’s vast renewable energy potential and existing industrial expertise position it well to expand green ammonia production.

This creates an opportunity to strengthen agricultural resilience while supporting new low-carbon industries.   

Ultimately, scaling green ammonia will be critical not just for Australia, but for reshaping global food, energy and industrial systems in a net zero world.