The green ammonia sector faces a critical slowdown as fading carbon incentives threaten project viability. Fertiliser executives warn that without financial support, the transition to low-carbon production will stall. The industry's ambitious plans to decarbonise ammonia manufacturing are now in jeopardy as economic realities clash with environmental goals.

Ammonia, a key ingredient in fertilisers, traditionally relies on natural gas for production, generating significant carbon emissions. Green ammonia projects aimed to use renewable energy for production, but the high costs and lack of supportive policies are derailing progress. Industry leaders stress that the economics simply don't work without substantial carbon pricing or government subsidies.

The setback highlights the broader challenge of decarbonising heavy industry. While renewable energy costs have fallen, the infrastructure and technology for green ammonia remain expensive. Without a clear path to profitability, companies are scaling back or abandoning projects, potentially delaying global emissions reduction targets.