The global energy transition is creating billion-dollar opportunities for countries with competitive advantages in renewable energy. Brazil is emerging as a natural candidate in this race, particularly in the green ammonia segment, a molecule that promises to revolutionize everything from fertilizer production to international maritime transport.
What makes green ammonia strategic?
Unlike conventional (grey) ammonia, produced from natural gas reforming and responsible for emitting two tons of CO₂ for every ton produced, green ammonia combines hydrogen obtained via water electrolysis with renewable electricity and atmospheric nitrogen through the Haber-Bosch process. The result? Zero carbon emissions in production.
This characteristic positions it as an essential driver for decarbonizing complex sectors:
- Fertilizers, which account for 80% of current demand.
- Maritime transport, where it serves as a zero-carbon fuel.
- Energy generation through co-firing and storage.
- Chemical and steel industries as a reducing agent.
The versatility of green ammonia explains the aggressive market projections. According to MarketsandMarkets, the sector is expected to jump from US$0.3 billion in 2023 to US$17.9 billion in 2030, a compound annual growth rate of 72.9%. Fortune Business Insights estimates point to up to US$44 billion in 2032, with global export volumes reaching 110-130 megatons annually by 2050.
Why Brazil competes on equal terms
Brazil's competitiveness in the green ammonia market stems from structural advantages that are difficult to replicate. The levelized cost of ammonia (LCOA) in the country ranges from US$539 to US$1,103 per ton, according to CELA 2025 data, comparable to grey ammonia itself (US$361-1,300/t) and higher than established competitors.
The cost matrix reveals where this advantage lies. Renewables represent 50-60% of the total cost, followed by electrolysis (20-30%), the Haber-Bosch process (10%), and logistics (10-20%). Brazil has an installed renewable capacity of 60% of its energy matrix, with a wind-solar mix and electricity costs below US$ 20/MWh, a level that few countries achieve.
Other factors consolidate Brazil's position: strategic ports such as Açu, Pecém, and Suape; abundant water availability; and developing infrastructure. Australia and Chile compete with robust solar and wind resources, while the Middle East combines solar energy with cheap gas for carbon capture. The United States, despite incentives from the Inflation Reduction Act, faces high electricity grid costs that push LCOA to US$700-1,200/t.
From promise to concrete projects
The Brazilian green ammonia ecosystem is still on its way to maturity. The Port of Açu leads with three major projects: Sempen (1 Mt/year, FID expected for 2027-28), YamnaCo (1 Mt/year under a memorandum of understanding), and Fuella. Pecém and Suape are developing similar initiatives with Yamna and Fuella.
Public policies are advancing to create a favorable environment. The National Hydrogen Program (PNH2), launched by the Ministry of Mines and Energy (MME) in 2021 and updated in 2025 with the Hydrogen Portal, establishes guidelines for the sector. The Clean Hydrogen Law, approved in August 2024, and the BNDES's commitment of US$3 billion for 2025 signal government support.
However, no project has reached a final investment decision (FID) as of January 2026. All remain in the memorandum or pre-feasibility study phase, a contrast to international competitors such as Saudi Arabia's NEOM project (1.2 Mt/year, operation scheduled for 2026).
Bottlenecks that need to be addressed.
The gap between potential and execution reveals structural challenges. Slow environmental licensing, insufficient port expansion, and limited connections to the electricity grid create friction for developers.
The value chain has critical points: electrolyzers still depend on imports, RFNBO certification of origin for access to the European market requires complex processes, and safety issues (ammonia is toxic) demand rigorous protocols.
On the demand side, offtakers are hesitant to enter into long-term contracts without price and supply visibility. The European Union, through the RED III directive, has set a target of 42% renewables by 2030 and requires a 70% reduction in greenhouse gas emissions for renewable fuels of non-biodegradable origin. Japan and South Korea are seeking ammonia for co-firing in power plants and decarbonization of the maritime sector aligned with the IMO 2050 targets.
The realistic scenario for 2030-2040
Conservative projections place Brazil with a capacity of 2 megatons per year in 2030, scaling to 5-10 Mt/year in 2035-2040 if projects advance to FID between 2027-2028. This would represent capturing 5-10% of global green ammonia exports.
Revenue potential fundamentally depends on execution. Exports of 10 Mt/year at US$600/t would generate US$6 billion annually (approximately R$32 billion at the January 2026 exchange rate). The "R$150+ billion" thesis incorporates both accumulated project CAPEX and projected export flows for 2040.
Three bets define success:
- Prioritization of port hubs (Açu/Pecém) with accelerated infrastructure.
- Anchoring in clear demand for fertilizers and maritime transport.
- Effective RFNBO certification policy and structured financing via BNDES.
Brazil's leading role in this market is not automatic. It depends on overcoming regulatory bottlenecks, attracting offtakers with firm contracts, and executing ambitious timelines—transforming natural advantages into concrete commercial leadership.
