Canada Ammonia Market Size & Outlook, 2025-2033

Canada Ammonia Market Size

The Canada ammonia market size was valued at USD 6773.2 million in 2024 and is projected to grow from USD 7389.56 million in 2025 to USD 14832.58 million by 2033, growing at a CAGR of 9.1% during 2025–2033. The market growth is driven by strong fertiliser demand from Canada’s grain-producing provinces, especially Saskatchewan and Alberta, and increasing investments in low-carbon ammonia to support clean energy and hydrogen strategies. Government-backed initiatives for emissions reduction and Canada’s Hydrogen Strategy are accelerating green ammonia development, positioning the country as a future exporter in global clean energy markets.

Canada Ammonia Market Trends

Rise of Green Ammonia in Canada's Hydrogen Strategy

Is green ammonia the next clean energy export for Canada?

With Canada aiming to become a global hydrogen leader, green ammonia is gaining attention as a key energy carrier. The government’s Hydrogen Strategy for Canada, launched in 2020, identifies ammonia as a crucial vector for hydrogen exports to Asia and Europe. Companies like EverWind Fuels in Nova Scotia and Yara Clean Ammonia began developing large-scale green ammonia facilities in 2024, supported by provincial and federal funding. These projects, targeting operational capacities of up to 1 million tonnes annually, align with Canada’s push to decarbonise heavy industries and expand clean fuel exports, adding a new dimension to the ammonia market beyond agriculture.

Fertiliser Demand Driven by Crop Diversification and Global Trade

Canada’s agriculture relies heavily on nitrogen-based fertilizers, with ammonia being central in boosting crop yields across major grain and oilseed farms. Statistics Canada reported a steady rise in crop acreage for wheat, barley, and canola, reinforcing demand for anhydrous ammonia and urea ammonium nitrate (UAN). Additionally, the expansion of grain exports, particularly to Asia, has prompted growers to optimise yield through intensive fertiliser use. Companies such as Nutrien, headquartered in Saskatchewan, are ramping up local ammonia supply to support this growth. The result is sustained domestic consumption and stable pricing, driving overall market resilience.

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Canada Ammonia Market Growth Factors

Sustained Fertiliser Demand across Agricultural Provinces

Fertiliser use continues to anchor ammonia demand in Canada, particularly in provinces like Saskatchewan, Alberta, and Manitoba. Rising global food demand and trade opportunities, especially for wheat, lentils, and canola, have led Canadian farmers to invest in high-efficiency fertiliser practices. Programs like 4R Nutrient Stewardship also promote responsible ammonia use while maintaining productivity. This long-term demand ensures a steady baseline for the ammonia market, encouraging upstream production investments and downstream distribution improvements across the Prairie provinces.

Government Support for Clean Ammonia and Hydrogen Export Potential

Canada’s push for net-zero emissions by 2050 drives significant investments in clean hydrogen and ammonia production. Under the federal Clean Fuel Regulations and Hydrogen Strategy, ammonia is prioritised for its ability to store and transport hydrogen economically. In 2024, the government announced over CAD 1.5 billion in clean tech funding, with portions allocated to ammonia-based hydrogen projects in Nova Scotia, Newfoundland, and Alberta. These initiatives are reducing the carbon intensity of domestic production and positioning Canada as a reliable supplier to hydrogen-importing nations like Japan and Germany.

List of key players in Canada Ammonia Market

1. Nutrien
2. FuelPositive Corp

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Recent Developments

• March 2025- The Canadian subsidiary of global hydrogen producer Hy2gen filed a project notice for its COURANT renewable ammonia plant in Quebec, marking regulatory progress toward construction. The filing signifies confidence in eventual Canadian green ammonia production, backed by ongoing dialogue with local stakeholders and expected environmental approvals. The plant will use renewable energy to synthesise ammonia, signalling momentum in low-carbon supply chain development.
• December 2024- South Korea’s DL Engineering & Construction (DL E&C) secured a contract with Genesis Fertilizers for front-end design and CCUS licensing via its affiliate CARBONCO. The project involves building a fertiliser plant in Saskatchewan that will process 1,500 t/d of blue ammonia, capturing ~800,000 tonnes of CO₂ annually with 95% carbon abatement. Once operational, the facility is expected to produce over 1 million tonnes of eco-friendly fertiliser annually.