Propelled by tax credits for “clean” hydrogen and carbon capture awarded under the Biden Administration’s Inflation Reduction Act and Bipartisan Infrastructure Law, the U.S. is on the cusp of a quadrupling of ammonia production capacity.  

The Environmental Integrity Project has collected data as of December 2024 on 38 proposed ammonia projects across the country, which could increase annual ammonia production capacity by over 60 million metric tons over the next five years.  

Traditionally used in fertilizers, ammonia is increasingly being touted for its potential use as a fuel for the shipping industry and as an efficient vector for storing and transporting hydrogen.  

Conventional ammonia – referred to as “gray” ammonia – is made from natural gas and is extremely emissions intensive. To reduce its carbon footprint, and with the support of tax incentives, about two thirds of proposed ammonia projects plan to capture at least some carbon dioxide from the production process and sequester it deep underground, producing what is referred to as “blue” ammonia. These blue ammonia projects represent nearly70-90 percent of proposed capacity additions announced to date.

A smaller number of projects – representing only 7 percent of proposed capacity – plan to use renewable electricity, deionized water, and atmospheric nitrogen to produce “green” ammonia, which does not rely on fossil fuels. 

For more information and a full list of proposed projects, please see EIP’s fact sheet on the ammonia buildout in the U.S.