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Japan Green Ammonia Market Size and Growth Overview (2025-2033)
Market Size in 2024: USD 24.5 Million
Market Forecast in 2033: USD 1,117.4 Million
Market Growth Rate 2025-2033: 50.26%
According to IMARC Group's latest research publication, "Japan Green Ammonia Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2025-2033", the Japan green ammonia market size reached USD 24.5 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,117.4 Million by 2033, exhibiting a growth rate (CAGR) of 50.26% during 2025-2033.
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How AI is Reshaping the Future of the Japan Green Ammonia Market?
In Japan, AI systems are already being used to optimize electrolysis and increase efficiency throughout the value chain for the production of green ammonia. AI systems can also be applied to manage renewable inputs, maximizing the use of solar and wind to produce hydrogen from renewable resources. Machine learning algorithms that can analyze large amounts of production plant data to predict maintenance, optimize power usage and reduce operating costs, can make green ammonia more competitive with conventional sourcing.
AI-based predictive analytics can help Japanese companies with their green ammonia supply chain and storage planning. Neural network technologies may also help with ammonia synthesis and catalyst development to increase ammonia conversion rates. AI technologies may be key to Japan's decarbonization ambitions, providing real-time optimization of production technology depending on the availability of renewable energies, the fluctuations of electricity markets and demand from end users.
Smart green ammonia plants, using AI and IoT sensors to create factories that can be largely self-optimizing, are of interest to Japanese trading houses and utilities who expect smart plants will be important for achieving Japan's carbon neutrality targets for 2030 and 2050. Japanese firms are investing large sums in smart green ammonia plants. As AI technology improves, the production cost is expected to decrease, leading to the commercialization of green ammonia for various industrial applications in Japan.
Japan Green Ammonia Market Trends & Drivers
Japanese green ammonia demand is growing rapidly due to the country's hydrogen and ammonia energy strategy, which strives to reach 20 million tons of annual hydrogen and ammonia consumption by 2050. Under the Green Transformation (GX) policy, the Ministry of Economy, Trade and Industry (METI) has committed around $51 billion to hydrogen and ammonia investments. Long-term contracts for difference (CfD) subsidies for electricity generated by low-carbon hydrogen will be allocated project-by-project. The complete policy framework is driving domestic production capacity and import partnerships with countries including Australia, the Middle East and India. The increased interest in co-firing green ammonia with coal in existing power plants, including successful demonstration tests of co-firing with 20% green ammonia at JERA's Hekinan Power Station, indicates strong demand from the power generation sector.
The transport and shipping sectors have also been identified as strong niche growth cases for the Japanese green ammonia market. Commercial ammonia-fuelled vessels are already in operations by major shipping companies such as NYK Line and Mitsui O.S.K. Lines to comply with the International Maritime Organization net-zero marine fuel requirements. Another factor expected to fuel market growth is the growing demand for green ammonia in the agriculture sector to produce eco-friendly nitrogen-based fertilizers with a low carbon footprint. The establishment of import infrastructure, including three large-scale hydrogen and ammonia supply clusters, as well as five medium-scale hydrogen and ammonia supply clusters in metropolitan and industrial regions, is also expected to fuel market growth. India's first green ammonia export agreement was signed in August 2024 to supply green ammonia to Japan, alongside a 1.2 MTPA offtake agreement signed by ACME Group and Japan's IHI Corporation, stressing the strengthening supply chain and India's ambition of becoming the preferred green ammonia producer and supplier in the Asia-Pacific region.
Japan Green Ammonia Industry Segmentation:
The report has segmented the market into the following categories:
Technology Insights:
- Proton Exchange Membrane
- Alkaline Water Electrolysis
- Solid Oxide Electrolysis
End User Insights:
- Power Generation
- Transportation
- Fertilizer
- Refrigeration
- Others
Regional Insights:
- Kanto Region
- Kansai/Kinki Region
- Central/ Chubu Region
- Kyushu-Okinawa Region
- Tohoku Region
- Chugoku Region
- Hokkaido Region
- Shikoku Region
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Competitive Landscape:
The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.
Recent News and Developments in Japan Green Ammonia Market
- June 2025: Envision Energy, a worldwide frontrunner in green technology, disclosed a landmark green ammonia offtake deal with Marubeni Corporation, one of Japan's top five trading firms. The collaboration combined Envision Energy’s expertise in integrated green hydrogen-ammonia solutions with Marubeni’s extensive global network and energy trading knowledge, enabling large-scale production, supply, and commercialization of green ammonia. This partnership would expedite Japan's transition to a green economy, foster increased investment and innovations, and aid the government's sustainability objectives.
- February 2025: A group of Japanese scientists, led by Professor Masaaki Kitano at the Institute of Science Tokyo, found an innovative method for creating green ammonia at significantly reduced temperatures and pressures compared to traditional techniques, which could revolutionize the manufacturing of this essential chemical. The advancement, released in Nature Chemistry, had the potential to greatly decrease the extensive carbon footprint of worldwide ammonia production, which represented roughly 2% of worldwide energy use.
- August 2024: NYK established a fundamental agreement for the maritime transport of green ammonia to Japan in partnership with Kyushu Electric Power Company, Incorporated, Sojitz Corporation, and Sembcorp Green Hydrogen Pte. Ltd. Sembcorp, a fully owned subsidiary of Sembcorp Industries, was involved in the project to generate green ammonia. The arrangement relied on the agreement that around 200,000 Metric Tons of green ammonia would be generated each year by this initiative and delivered to the Kyushu area, satisfying end-user requirements by leveraging NYK’s expertise and understanding of ammonia marine transportation.
Future Outlook
The Japan green ammonia market is set for rapid growth, driven by carbon neutrality goals, government support, technological advances, and expanding applications in energy, transport, and industry, positioning Japan as a key global player.
Key highlights of the Report:
- Market Performance (2019-2024)
- Market Outlook (2025-2033)
- COVID-19 Impact on the Market
- Porter's Five Forces Analysis
- Strategic Recommendations
- Historical, Current and Future Market Trends
- Market Drivers and Success Factors
- SWOT Analysis
- Structure of the Market
- Value Chain Analysis
- Comprehensive Mapping of the Competitive Landscape
Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.
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IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.
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