Italy Ammonia Market Size & Outlook, 2025-2033

Italy Ammonia Market Size

The Italy ammonia market size was valued at USD 580.32 million in 2024 and is projected to grow from USD 616.59 million in 2025 to USD 1001.45 million by 2033, growing at a CAGR of 6.25% during 2025–2033. The market growth is driven by stable demand for nitrogen-based fertiliser inputs in Italy’s extensive agricultural sector, growing industrial uses, particularly in refrigerants and chemical feedstocks, and emerging clean ammonia initiatives tied to Europe’s hydrogen strategy and Italy’s energy diversification plans.

Italy Ammonia Market Trends

Green Ammonia Poised for Industrial Uptake

Is Italy Ready to Become A Green Ammonia Player?

Italy’s major engineering firms, notably Saipem, are pivoting toward low-carbon ammonia infrastructure. In mid-2024, Saipem secured a €250 million contract to build a green ammonia storage tank within a Northern European hydrogen import terminal, signalling Italy’s strategic involvement in the clean ammonia supply chain. Italy also engages in feasibility studies for domestic green ammonia production sites, leveraging its renewable capacity and strategic Mediterranean location to link Southern Europe with North African green energy initiatives.

Italy-Saudi Partnership Boosts Hydrogen and Ammonia Links

A new energy cooperation agreement between Italy and Saudi Arabia, signed in January 2025, underscores Italy’s strategic role in receiving renewable hydrogen and ammonia imports from Saudi renewable energy projects. The five-year MoU encompasses hydrogen/ammonia trade, carbon capture, and grid interconnections. As Italy develops import infrastructure and refining/cracking facilities, this partnership boosts market supply stability and positions Italy as a European gateway for low-carbon ammonia and hydrogen imports. In addition to port upgrades, Italy is planning pipeline and storage expansions to accommodate incoming low-carbon energy.

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Italy Ammonia Market Growth Factors

Agricultural and Industrial Steadiness in Ammonia Demand

Ammonia remains a pivotal input for fertiliser production and industrial refrigeration in Italy. According to Italy’s market data, ammonia demand stood at roughly 450,000 tonnes in 2023 and is projected to reach around 635,000 tonnes by 2034, driven by steady crop production and industrial diversification. Although the Italian fertiliser market grew moderately, continued demand for nitrogen-rich inputs and expanding reuse of ammonia in food-processing refrigeration support consistent baseline consumption and revenue streams.

Investment in Low-Carbon and Renewable-Ammonia Capabilities

Italy’s engineering sector and energy strategy are pivoting further toward green hydrogen and ammonia. Italy’s partnership with Saudi Arabia for renewable hydrogen and ammonia aims to position the nation as an entry point into the European clean-fuel network, unlocking new industrial uses and market expansion opportunities beyond conventional fertilisation. Domestic firms are also investing in R&D to optimise ammonia as a hydrogen carrier, while public-private alliances are supporting pilot projects focused on maritime bunkering, zero-carbon transport, and renewable fuel production, broadening ammonia’s role across sectors.

Strengthened International Import Pathways and Partnerships

Collaborative energy agreements, like the January 2025 MoU with Saudi Arabia, enable Italy to diversify supply and secure access to low-carbon ammonia and hydrogen sources. As Italy develops port-based import terminals and refining capacity, it enhances supply security, lowers dependence on domestic gas inputs, and supports broader European hydrogen ambitions. These import pipelines also create the potential for downstream ammonia use in energy and chemical sectors, reinforcing long-term market expansion. Italy’s engagement with North African and Middle Eastern producers is being mirrored by EU-level funding support and regulatory facilitation, enhancing Italy’s strategic leverage in the future hydrogen and ammonia value chain.

List of key players in Italy Ammonia Market

1. CF Industries Holdings Inc
2. Yara International
3. Togliattiazot
4. QAFCO
5. Koch Industries Inc
6. SABIC
7. BASF SE
8. CSBP Limited
9. Asahi Kasei Corp
10. EuroChem

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Recent Developments

• January 2025- Italy agreed to work with Saudi Arabia on hydrogen and ammonia export partnerships, power interconnection, and carbon capture, positioning Italy as a strategic European receiving hub.
• July 2024- Saipem awarded €250 million green ammonia storage tank project for Northern Europe storage terminal tied to a green hydrogen/ammonia import hub, highlighting Italian technical leadership in low-carbon infrastructure.