Ammonia: Overview
The molecule behind most of the world's fertiliser
The molecule behind most of the world's fertiliser What this tab covers What the chemical is, how big its market is, what it is used for (with shares, volumes, why it wins and what could replace it), and its chain from raw material to end user. Ends with three things to remember.Ammonia (NH3) is made by the Haber-Bosch process from hydrogen and nitrogen at high pressure. World output was 190.5 Mt in 2024 (IFA), about 160 Mt of contained nitrogen in 2025 (USGS). About 70% goes to fertilisers, mostly via urea, and the rest to nitric acid, nylon, acrylics, polyurethanes and explosives. Gas is 72-85% of its cost, so gas prices set the world price. It emits about 2.4 t CO2 per tonne, roughly 1% of global energy CO2, and is a lead candidate for clean shipping fuel and hydrogen transport.
Volume 190.5 Mt ammonia (2024); about 160 Mt N in 2025e Market value about $90-100 billion a year (indicative, basis: 190 Mt x $480-525/t, near the 2025 US Gulf average of about $496/t) Growth about 1-2% a year (indicative); capacity additions in Asia, Eastern Europe and North America (USGS) IFA via DTN (Dec 2025); USGS MCS 2026, Nitrogen (Fixed)-AmmoniaKey uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Urea (fertiliser, resins, diesel exhaust fluid) | 60% | about 114 Mt NH3basis | Urea is 46% nitrogen, solid, and the cheapest nitrogen to ship and spread. Most ammonia plants are built with a urea plant beside them that also uses the reformer's CO2. IFA via DTN (Dec 2025); stoichiometry; nitrogen tile | Ammonium nitrate and CAN UAN solutions Direct-applied ammonia |
| Other fertilisers: DAP/MAP, ammonium nitrate and CAN, UAN, ammonium sulphate, direct application | 10% | about 19 Mt NH3basis | Phosphate makers (OCP in Morocco, Indian DAP plants) buy ammonia to make DAP and MAP. Europe prefers nitrates; US farmers inject anhydrous ammonia directly. IEA Ammonia Technology Roadmap (2021); derived | Urea Manure and legumes |
| Industrial chemicals: nitric acid (for explosives, adipic acid), caprolactam, acrylonitrile, MDI/TDI, amines, cyanides | 25% | about 48 Mt NH3basis | Ammonia is the cheapest reactive nitrogen for chemistry. Nylon, acrylic fibre, ABS and polyurethane foam all trace back to it. IEA (2021); split indicative | None at scale |
| Mining explosives (ammonium nitrate, ANFO, emulsions) | 5% | about 10 Mt NH3basis | Ammonium nitrate with fuel oil is the cheapest bulk blasting agent for coal, iron ore and copper mines. USGS lists no practical substitute. USGS MCS 2026; split indicative | None practical (USGS) |
| Emerging: shipping fuel, power co-firing, hydrogen carrier | 0% | negligiblebasis | Ammonia carries hydrogen at liquid density, has existing ports and ships, and burns without CO2. Japan's JERA co-fires it in coal plants and joined CF's Blue Point project. CF Industries 2025 results | Methanol Liquefied hydrogen LNG |
From raw material to user
- Gas or coal supply About 33 MMBtu of gas per t of ammonia (USDA ERS); China uses coal for about 85% of its ammonia (IEA 2021).
- Hydrogen production Steam reforming or coal gasification; 0.178 t of hydrogen per t of ammonia.
- Nitrogen supply Air in a secondary reformer, or an air separation unit; 0.823 t N2 per t NH3.
- Haber-Bosch synthesis Iron catalyst at about 150-250 bar and 400-500 C; world output 190.5 Mt (IFA 2024).
- Conversion on site About 60% becomes urea; the rest nitric acid, nitrates, phosphates or merchant ammonia.
- Storage and shipping Refrigerated at -33 C in gas carriers; exports worth $5.87 billion in 2024 (Comtrade reporters).
Made from (commodity table)
Gas Natural gasTc Thermal coalN Nitrogen (ammonia)Three things to know
- Gas is 72-85% of ammonia cost, so a $10/MMBtu gas move shifts cost by about $330/t (USDA ERS basis: 33 MMBtu/t).
- China makes 30.6% of world ammonia, mostly from coal; India and Russia each make about 9.4% (USGS 2025e).
- India's 2025 SECI auction bought 724 kt a year of green ammonia at Rs 49.75-64.74/kg, roughly $570-740/t.