The Hydrogen Hype Is Dead: Why Ships & Servers Are Betting on Ammonia

The quiet revolution is underway: green ammonia, long overshadowed by hydrogen, is rapidly emerging as the dark horse in the race to decarbonize heavy industry and power the insatiable demands of AI. While green hydrogen has captured headlines, its more practical, easier-to-handle derivative is now taking center stage for critical applications like global shipping and the 24/7 energy needs of advanced AI infrastructure. This isn't just about cleaner fuel; it's a strategic pivot that promises to reshape global trade, energy security, and the very architecture of our digital future.

The Unseen Shift: From Hype to Heavy Lifting

For years, green hydrogen was touted as the ultimate clean fuel. Yet, its inherent challenges—difficult and costly storage, liquefaction, and transport—have slowed its widespread adoption as a direct fuel for many uses. Enter green ammonia (NH3). Produced by combining green hydrogen with nitrogen from the air, it's far easier to store and transport as a liquid, even at relatively mild temperatures and pressures, compared to cryogenic liquid hydrogen. This critical advantage is driving a rapid, under-the-radar surge in its viability, particularly for sectors that demand high energy density and robust logistics.

Multiple major projects scheduled for 2025 and 2026 illustrate this shift. The NEOM Green Hydrogen Project in Saudi Arabia, a joint venture of ACWA Power, Air Products, and NEOM, is set to produce up to 1.2 million tonnes of renewable ammonia per year, with commercial operations likely starting in late 2025 or early 2026. This facility, designed to run entirely on renewable energy, will serve as a massive export hub. Similarly, India's AM Green Kakinada Project, an integrated facility powered by 7.5 GW of solar and wind, aims for 1.5 million tonnes per annum (MTPA) starting January 2026. China is also seeing multiple renewable ammonia production projects come online, with over 600,000 tons per year operational by early 2026. The global green ammonia market, valued at USD 3.4 billion in 2025, is projected to surge to USD 5.2 billion in 2026, and an astounding USD 170.5 billion by 2035, growing at a CAGR of 54.5%.

Powering the AI Revolution, 24/7

Artificial intelligence workloads demand continuous, dispatchable power. The intermittency of renewable sources like solar and wind presents a significant challenge for data centers, pushing them towards on-site solutions and reliable backup. Green ammonia offers a compelling answer. It acts as a flexible energy carrier, storing surplus renewable energy and reconverting it on demand to provide 24/7 power.

A recent report by GHD, published in June 2025, highlights how behind-the-meter (BTM) data centers powered by on-site renewables and backed by green ammonia-based energy storage are gaining traction. A modeled 80 MW BTM facility, supported by 250 MW of renewable generation and a closed-loop ammonia system, demonstrated a carbon intensity of just 3 grams of CO₂ per kilowatt-hour—over 100 times cleaner than most natural gas setups. This approach not only reduces carbon emissions but also mitigates grid constraints and fossil fuel reliance, giving data center operators greater control over energy costs and reliability. Eneus Energy, for instance, is already focusing on developing data centers with an