Companies are proposing dozens of projects across the U.S. to produce ammonia, mainly from natural gas, according to a new fact sheet by the Environmental Integrity Project (EIP).

As of December 2025, EIP has collected data on 45 proposed ammonia projects across the U.S., which could increase annual ammonia production capacity by over 67 million metric tons over the next five years. About two thirds of these projects plan to make ammonia from fossil fuels with carbon capture, a largely unproven technology that has not shown itself to be financially viable despite billions of dollars in federal subsidies.

Ammonia is used mainly as a building block of synthetic nitrogen fertilizers and in industrial refrigeration. However, ammonia can also be burned as fuel or used as a carrier for hydrogen fuel. Though ammonia and hydrogen do not release carbon dioxide emissions when burned, producing them from fossil fuels does release carbon dioxide.

To reduce its carbon footprint, and with the support of tax incentives, most 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. A smaller number of projects plan to use renewable electricity, deionized water, and atmospheric nitrogen to produce “green” ammonia, which does not rely on fossil fuels.

The momentum behind new ammonia projects has largely slowed. Based on a review of publicly available records, there has been no activity for at least 11 proposed projects since they were first announced years ago, according to EIP’s factsheet. Some companies have paused plans altogether, and at least one project was canceled over the past year as fossil fuel companies focus on projects that offer stronger financial returns.

The slowdown is partly due to policy uncertainty and changes to federal tax incentives, and a market that has not matured quickly enough to support large new investments.

Click here to download a copy of the ammonia fact sheet.