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North America to account for 44% of global ammonia capacity additions by 2028

North America is set to lead the global ammonia industry capacity additions with a share of 44% by 2028, by gaining capacities from new-build and expansion projects between 2024 and 2028, according to GlobalData, the data and analytics company. 

GlobalData’s latest report, Ammonia Industry Capacity and Capital Expenditure Forecasts with Details of Active and Planned Plants to 2028, shows that the total ammonia capacity of new-build and expansion projects in North America is expected to be 31.19 million tonnes per annum (mtpa) by 2028.

Ammonia is a widely used chemical in various end-use industries. The demand for ammonia in North America is driven by the growing usage of nitrogen-based fertilisers in the agriculture industry in the region of North America leads to the surging demand of ammonia. The other factors contributing to the growth of ammonia are the low-cost feedstock and the emergence of end-users with decarbonisation goals.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “For the upcoming new build projects, North America is expected to add a capacity of 29.96mtpa from 21 planned and announced projects, whereas for expansion, it is expected to add a capacity of 1.24 mtpa from two planned and announced projects.”

Ammonia capacity additions in North America are expected to come mainly from the US. The major capacity addition in the US will be from an announced project, Ascension Clean Energy Donaldsonville Ammonia Plant, with a capacity of 7.20mtpa. It is expected to come online in 2027.

Nivedita concludes: “In the US, the second major capacity contribution will be from an announced project, St Charles Clean Fuels St. James Parish Ammonia Plant, with a capacity of 3mtpa. It is also expected to commence operations in 2027.”

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