The EU has set a legally binding climate target for 2040, at a 90% GHG emission reduction versus 1990 levels. But, while the 2030 emission target can theoretically be met with limited modifications to existing ammonia production plants in the EU, new technology pathway choices will have to be made well before 2040 to ensure compliance. We explore some of the options, and projects in progress.
Despite the successes and progress made in 2025, the year remains a missed opportunity for ammonia energy. The first complete supply chains for renewable ammonia are emerging, and some 600,000 tons of annual production capacity is set to be online in northeast China early next year. Maritime engines, cracking, and power & heat technology solutions also made their mark, moving from feasibility into deployment. But disappointing outcomes at the IMO and government support that failed to spark market development remains an issue, with plenty of critical, detail-heavy work ahead of us in 2026.
The first two recipients in Japan’s long-term contracts for difference program for low-carbon hydrogen production have been announced. Resonac will produce hydrogen from used plastics and subsequently ammonia, with Japanese chemicals giant Nippon Shokubai to act as offtaker.
