Ammonia is a colorless gas with the chemical formula NH₃, primarily produced through the Haber-Bosch process, which synthesizes nitrogen from the air with hydrogen derived from natural gas. It is one of the most widely manufactured industrial chemicals in the world.
Production & Sources
The vast majority of ammonia production relies on natural gas as a feedstock, making costs highly sensitive to energy prices. Some regions, including China, also use coal-based ammonia plants. A new wave of blue and green ammonia projects are emerging, aiming to capture carbon emissions or use renewable hydrogen.
Applications
- Agriculture: Ammonia is the starting point for producing urea, ammonium nitrate, and ammonium sulphate, which are the most widely used nitrogen fertilizers. In some regions, anhydrous ammonia is applied directly to soil.
- Industrial: Beyond fertilizers, ammonia is used in plastics, textiles, refrigeration, and explosives.
Major Players
Leading producers include CF Industries, Yara International, Nutrien, OCI, and ICL, with significant output in the United States, Middle East, Russia, and China. Trade flows often follow natural gas availability, with the US Gulf and Middle East acting as key exporters.
Trends & Issues
- Energy dependence: Ammonia prices are tied closely to natural gas markets, creating volatility.
- Decarbonisation: Blue and green ammonia projects are growing as governments push for lower emissions in fertilizer and shipping.
- Global trade: Supply disruptions in major producing regions ripple quickly into food production costs worldwide.
