Material Insights · Understanding the Material World

Ammonia: Production route

Grey, blue and green: four ways to make ammonia

What this tab covers How it is made: the main production routes or, for product families, the main product types and technologies, compared on share of supply, inputs per tonne, plant scale, yield, co-products and unit cost.

Every route makes hydrogen and combines it with nitrogen from air in a Haber-Bosch loop. The cheapest hydrogen comes from natural gas reforming, which supplies just over 70% of world ammonia (IEA 2021). China gasifies coal. India runs on pooled domestic gas and imported LNG. New low-carbon routes capture the CO2 from reforming (blue) or use electrolytic hydrogen (green). The synthesis loop is the same in each; the hydrogen source decides cost and carbon.

Routes compared

RouteShare of supplyInputs per tonneTypical scaleYieldCo-productsUnit cost
Natural gas steam reforming + Haber-Boschjust over 70% of world ammonia (IEA 2021)about 28-33 MMBtu of gas per t NH3 (best plants to average; USDA ERS 33)world-scale trains 1.1-1.3 Mt NH3 a year; QAFCO Qatar 3.8 Mt NH3 on one site (2019)near-stoichiometric on nitrogen; energy efficiency set by plant ageabout 1.2-1.3 t CO2 per t NH3 as a pure stream (indicative), steamgas cost alone about $110/t at CF's 2025 average gas of $3.31/MMBtu; about $840/t at Europe's Sep 2026 average of $25.42/MMBtu (basis: 33 MMBtu/t)
Coal gasification + Haber-Boschmost of the remaining 30%; about 85% of China's ammonia (IEA 2021)about 1.2-1.5 t coal per t NH3 (indicative)Talcher (India) 1.27 Mt urea a year, 67% complete in May 2025lower energy efficiency than gasCO2 (about twice gas-based), slag, sulphurnot published; northern China urea sold at about $255-267/t in Apr 2026 (Reuters)
Blue ammonia (ATR or SMR with carbon capture)negligible todayas gas route plus capture powerCF/JERA/Mitsui Blue Point, Louisiana (about 1.4 Mt a year, indicative); civil works from 2026as gas routecaptured CO2 for storage10-100% above conventional (IEA 2021)
Green ammonia (electrolytic hydrogen + ASU nitrogen)negligible todayabout 9-10 MWh of electricity per t NH3 (indicative)SECI awards of 4-370 kt a year; NEOM about 1.2 Mt a year (indicative)as conventional loopoxygen from electrolysisIndia SECI 2025: Rs 49.75-64.74/kg (about $570-740/t); first award Rs 55.75/kg (about $641/t) against grey at about $515/t (Mar 2025)

How each route works

Natural gas steam reforming + Haber-Bosch

Methane and steam react over nickel catalyst; air added in a secondary reformer supplies nitrogen. After shift and CO2 removal, the gas is compressed to the synthesis loop. The pure CO2 stream usually feeds an adjacent urea plant.

Cheapest where gas is cheap; Europe is the high-cost swing producer.

IEA (2021); USDA ERS; CF Industries 2025 results; World Bank Pink Sheet (Oct 2026) Coal gasification + Haber-Bosch

Coal is gasified with oxygen and steam; syngas is shifted and cleaned to pure hydrogen, then joined with ASU nitrogen. Used across China and at India's Talcher project.

Uses domestic coal; high capex and CO2.

IEA (2021); Reuters (Apr 2026); Department of Fertilizers via ETV Bharat (2025) Blue ammonia (ATR or SMR with carbon capture)

Autothermal reformers concentrate nearly all CO2 in the process stream for capture and storage. Several US Gulf Coast and Middle East projects target Japanese and Korean fuel buyers.

Cheapest low-carbon route where CO2 storage exists; methane leaks upstream.

IEA (2021); CF Industries 2025 results Green ammonia (electrolytic hydrogen + ASU nitrogen)

Renewable power runs electrolysers; hydrogen is buffered and fed with ASU nitrogen to a flexible Haber-Bosch loop. India's SECI auction set 10-year contracts with phosphate and fertiliser makers.

Near-zero CO2; needs subsidy and cheap capital.

SECI via ESMAP (2025); pv magazine India (Aug 2025) Unit economics are indicative ranges from the sources named; costs move with feedstock and energy prices, plant size and region.