Ammonia is one of the most abundant nitrogen-containing compounds that occur naturally in the environment. Around 80% of the ammonia produced by industry is used in agriculture as fertilizer. It is also widely used for purification of water supplies, as a refrigerant gas, and to manufacture dyes, pesticides, textiles, explosives, plastics, and other chemicals. Growth of the Australia ammonia market is mainly driven by the increasing utilization of ammonia-based fertilizer to enhance the yield productivity to meet the growing demand for food. The prospects for Australian agriculture in the period to 2050 lie in its capacity to meet growing food demand, both domestically and also in Asia.
According to the Future Direction International (FDI), in Australia, food consumption levels are increasing per capita, and demand will continue to increase, as the population is expected to reach 35.9 Million in 2050. Ammonia is the basis for all of the major, manufactured nitrogen fertilizers. Ammonia contains 82 % nitrogen. Using ammonium nitrate in gardens and large-scale agricultural fields enhances plant growth. Thus, with the growing population, the demand for food is also increasing. This in turn is expected to increase the use of ammonia-based fertilizer in Australia, driving the Australia ammonia market growth.
Australia sees green hydrogen and ammonia as the biggest opportunity for power plants to develop a clean hydrogen industry in a drive to cut carbon emissions. Moreover, Australia's national hydrogen strategy aims to place it among the top three hydrogen exporters to the Asian region by 2030. Furthermore, JERA Co. and Yara International signed a MoU to collaborate on the production, delivery, and supply chain development for blue and green ammonia, to enable zero-emission thermal power generation in Japan and Australia. This in turn is also expected to augment the Australia ammonia market growth.
Furthermore, the Australia ammonia market is witnessing robust growth due to the increasing demand for cleaning products (household) as ammonia has excellent cleanser property and widely used to produce cleaning products, such as oven cleaners, toilet cleaners, drain cleaners, bathroom cleaners, window cleaners, etc. However, variation in seasonal demand for fertilizers and high dependence on imports of fertilizer products is estimated to affect sales of ammonia for the production of fertilizers in Australia. This in turn is expected to hamper the growth of the Australia ammonia market over the forecast period.
