United Kingdom Ammonia Market Size, Share & Trends Analysis Report By Type (Liquid, Gas), By End Use (Agriculture, Textile, Mining, Pharmaceutical, Refrigeration, Others), By Sales Channel (Direct, Distribution) and Forecasts, 2025-2033

United Kingdom Ammonia Market Trends

Green Ammonia as An Emerging Energy Vector

With the UK doubling on hydrogen development, green ammonia is gaining importance as a carbon-efficient fuel and hydrogen carrier. The government’s updated Hydrogen Strategy targets 10 GW of low-carbon hydrogen capacity by 2030, with ammonia viewed as a viable export medium via import cracking facilities such as the planned Immingham Green Energy Terminal. This shift signals the transformation of ammonia from agricultural feedstock to a strategic energy carrier in industrial decarbonization efforts. Projects from players like ITM Power and Air Products indicate growing private-sector confidence in ammonia’s potential.

Resilience through Strategic Imports and Port Utilisation

Why is the UK importing ammonia on a large scale?

Declining domestic production and pursuing green hydrogen boost reliance on ammonia imports, especially for hydrogen cracking and industrial use.

• For example, in February 2025, US-based Air Products, in partnership with Associated British Ports (ABP), secured approval for its Immingham terminal, aiming to import ammonia for hydrogen conversion, though a £2 billion project was later cancelled due to policy constraints.

As port terminals in the North West and Humberside mature, ammonia is increasingly positioned as an efficient hydrogen carrier into the UK market, supporting industrial clusters and trade-related decarbonization. Strategic ammonia import hubs offer the UK resilience in energy supply chains, reducing dependency on volatile gas imports while ensuring compatibility with international green hydrogen trade routes.

United Kingdom Ammonia Market Growth Factors

Agricultural Fertilizer Stability and Industrial Use

UK ammonia consumption remains anchored in fertilizer production, particularly liquid and anhydrous ammonia, with over 50% used in nitrogen fertilizer applications. Despite a modest decline in domestic output in 2024, ammonia supports critical food production systems, especially in arable sectors. Ammonia also serves as a feedstock in industrial refrigeration and chemical synthesis, underpinning steady demand across manufacturing sectors. With the closure of facilities like CF Fertilisers’ Billingham plant, the UK is leaning on imports to maintain supply continuity.

Hydrogen Economy and Government Policy Support

The United Kingdom government’s hydrogen strategy (2021/updated) supports a twin-track approach to hydrogen, committing to at least 50% green hydrogen supply by 2030. Ammonia is central to this vision, serving as a shipment-ready hydrogen carrier. Public funding of £2 billion announced in late 2023 is backing 11 hydrogen-related projects, with ammonia infrastructure considered essential to future exports and energy security. Projects like the South Wales Industrial Cluster and the East Coast Hydrogen network prioritise ammonia-based hydrogen delivery.

Infrastructure Evolution and Import Capacity Expansion

As local ammonia production shrinks, with anhydrous output down nearly 3% in 2024, investment is shifting toward import terminals and industrial cracking facilities near UK ports. Projects in Liverpool, Humberside, and Immingham aim to integrate ammonia into hydrogen networks. These developments address supply gaps, reduce reliance on volatile natural gas markets, and position the UK for stable access to low-carbon hydrogen sourced via ammonia imports. Air Products, Essar, and Trafigura are key players expanding terminal and cracking capacity to support decarbonisation goals.