Material Insights · Understanding the Material World

Ammonia

Hydrogen plus air nitrogen, ammonia is the root of almost all fertiliser and nitrogen chemistry, and the source of about 420 Mt of direct CO2 a year (IEA, 2022).

Commodity chemicals · Nitrogen & phosphate chemicals · No. 18

  • Single chemical
  • Feedstock: Oil, gas or coal
  • 190.5 Mt ammonia (2024); about 160 Mt N in 2025e
  • 2.8 t CO₂e per t
  • HS 281410
Commodity chemicals · Nitrogen & phosphate chemicals · Foundation · Matter

Ammonia is made from air and natural gas, and gas is up to 85% of its cost, so gas shocks reach farms.

Chart: Illustration: Ammonia

Where it comes from

Chart: Map of where it comes from

Hydrogen from gas or coal is combined with nitrogen from air over an iron catalyst at 150-250 bar: the Haber-Bosch process, which made 190.5 Mt in 2024.

Three things to know
  1. A $10/MMBtu move in gas shifts ammonia's cost by about $330 a tonne, because each tonne needs about 33 MMBtu.
  2. China makes 30.6% of world ammonia, mostly from coal, while India and Russia each make about 9.4%.
  3. India's 2025 auction bought 724 kt a year of green ammonia at roughly $570-740 a tonne.
The journey
  1. 1 Gas or coalAbout 33 MMBtu gas per tonne
  2. 2 HydrogenReforming or gasification, 0.178 t per tonne
  3. 3 NitrogenTaken straight from the air
  4. 4 Haber-BoschIron catalyst, 150-250 bar, 400-500 C
  5. 5 ConversionAbout 60% becomes urea on site
  6. 6 ShippingRefrigerated at -33 C in gas carriers
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