The rise of on-farm green ammonia: fertilizer meets energy storage

For a century, the world has made ammonia in centralized plants and shipped it to fields as a cornerstone of nitrogen fertilizer. A new wave of containerized, renewable-powered systems is challenging that model, letting farms synthesize ammonia on-site—turning a commodity input into a controllable, local output. Beyond fertilizer, green ammonia also doubles as a storable energy carrier, creating a novel bridge between farm operations and the clean power transition.

What on-farm green ammonia actually is

Ammonia (NH3) is typically produced by combining nitrogen from air with hydrogen, historically made from natural gas, in the Haber–Bosch process. That fossil-based pathway is responsible for roughly 1–2% of global CO2 emissions. Green ammonia replaces the fossil hydrogen with hydrogen produced by water electrolysis powered by renewable electricity, and it often uses a scaled-down, modular synthesis loop designed for intermittent power.

On-farm systems package four core components:

• Air handling and nitrogen separation (often via pressure swing adsorption or membrane units)
• Water purification and electrolysis to make hydrogen
• A compact ammonia synthesis loop that combines nitrogen and hydrogen under heat and pressure
• Storage and dispensing infrastructure for anhydrous ammonia

Modern controls allow these modules to ramp up and down with variable wind and solar, and in some designs to pause and resume without damaging catalysts. Sizes currently range from hundreds of kilograms to a few tons of ammonia per day—enough for many mid- to large-scale farms, or for cooperatives serving multiple operations.

The energy and water math, without the jargon

Ammonia production is energy intensive, but the inputs are predictable and local:

• Electricity: Green ammonia typically requires on the order of 9–12 megawatt-hours (MWh) of electricity per metric ton of ammonia when accounting for electrolysis and synthesis. The exact figure depends on equipment efficiency and operating profile.
• Water: Electrolyzers need about 9 liters of water per kilogram of hydrogen produced. Since one metric ton of ammonia contains roughly 176 kilograms of hydrogen, the stoichiometric water requirement is around 1.6 cubic meters per ton of ammonia, with additional water for purification and system losses.

These numbers make three design choices decisive: the source and price of electricity, the quality and availability of water, and the duty cycle (how steadily the system can run). Pairing with on-site solar and wind—often plentiful in farm country—plus modest battery buffering is emerging as the most cost-effective profile.

Why farmers are exploring it now

Three forces are converging:

• Price volatility and supply risk: Fertilizer prices spiked dramatically in recent years during energy and geopolitical disruptions. On-site production can hedge against price swings and logistics bottlenecks.
• Decarbonization pressure: Food brands and retailers are pushing emissions reductions across their supply chains. Swapping fossil-derived nitrogen with green ammonia cuts upstream CO2, a meaningful share of a farm’s footprint.
• Power as a farm input: As farms electrify pumps, dryers, robotics, and cold storage, a storable energy carrier like ammonia provides seasonal and multi-day buffering that batteries alone struggle to deliver economically.

How it fits into real operations

Anhydrous ammonia is already familiar on many row-crop farms, applied with injection rigs and handled under longstanding safety protocols. On-site production can feed the same application equipment. For farms that prefer UAN solutions or urea, additional downstream conversion steps are possible but add complexity and cost; many pilots are beginning with direct anhydrous ammonia to keep systems simple.

Consider a rough, illustrative scenario: A 5,000-acre corn operation applying around 150 pounds of nitrogen per acre needs approximately 340 metric tons of nitrogen annually, equivalent to about 415 metric tons of anhydrous ammonia. One 1-ton-per-day unit operating 200 days per year would produce 200 tons; two such units, or a single larger module, could match the farm’s demand while allowing downtime for maintenance and seasonal power variability. The onsite value is not only the product; it’s the ability to schedule production when power is cheap and secure supply when transport is tight.

Costs, incentives, and the path to parity

Economics hinge on the price of electricity and the scale of the system. At renewable electricity prices near a few cents per kilowatt-hour, the energy component of green ammonia can fall into the low hundreds of dollars per ton. Capital expenditure, maintenance, and capacity utilization determine the rest of the delivered cost—historically the biggest barriers for small, distributed plants. As manufacturing scales, electrolyzers improve, and software optimizes run-times to match low-cost power windows, the gap narrows.

Policy is accelerating the trend. Clean hydrogen tax credits and grants in several regions aim to lower the cost of renewable hydrogen and ammonia. Carbon border adjustments and buyer-led decarbonization programs are also beginning to value low-emission fertilizer in contracts. For farms, the practical question is whether equipment providers can bundle incentives into predictable offtake or lease models, turning capex into an operating expense with guaranteed availability.

Safety and regulatory realities

Ammonia is toxic and corrosive. Many farms already follow strict protocols for storage and application, including employee training, personal protective equipment, emergency venting, and leak detection. On-site production adds process equipment, so permitting and inspections may be required. In some jurisdictions, crossing certain storage thresholds triggers additional safety management rules. System integrators increasingly offer turnkey packages that include compliance support, remote monitoring, and rapid-response maintenance to keep the burden manageable.

Environmental impacts beyond the factory gate

Green ammonia largely eliminates the CO2 emissions associated with producing hydrogen from fossil fuels, but agronomic stewardship still matters. Nitrous oxide (N2O) emissions from nitrogen application remain a climate concern and a nutrient loss. Precision placement, rate control, soil health practices, and nitrification inhibitors can reduce these emissions and improve nitrogen use efficiency. The environmental “win” of on-farm green ammonia is greatest when paired with modern application strategies that keep nitrogen in the root zone and out of the air and water.

The energy storage angle

Ammonia stores energy densely and at relatively low cost per unit of stored energy. Farms exploring electrified grain drying, backup power, or seasonal irrigation loads can, in principle, use ammonia as a fuel—either by cracking it back to hydrogen for fuel cells or by using engines and turbines adapted for ammonia or ammonia-hydrogen blends. While those technologies are earlier-stage than fertilizer use, pilot projects point to a future where a single molecule supports both agronomy and power resilience on-site.

What’s available and what’s next

The market is moving from prototypes to early commercial deployments. Several companies now offer containerized ammonia systems designed for behind-the-meter renewables, with production capacities measured in hundreds of kilograms to a few tons per day. Early adopters include grain and row-crop operations in regions with strong wind or solar resources, as well as co-ops and agro-industrial sites that can run high-utilization duty cycles. Expect the next two to three years to bring:

• More “power-flexible” synthesis loops that tolerate frequent stops and starts
• Integrated project models: equipment, service, permitting, and offtake under one contract
• Better digital twins that optimize when to produce, store, or apply, based on weather, power prices, and crop plans
• Progress on ammonia-fueled engines and solid oxide fuel cells suitable for farm power

Key questions for prospective adopters

• Resource fit: Do you have enough low-cost, reliable renewable electricity and suitable water? How will seasonal variability affect run-time?
• Scale: What annual ammonia tonnage matches your acreage and crop rotation, and does a single module or a shared system make more sense?
• Integration: Can you use anhydrous ammonia directly, or will you need downstream conversion to UAN/urea?
• Compliance: What storage thresholds and safety management rules apply locally, and who will handle permitting and monitoring?
• Contracting: Is a lease or “ammonia-as-a-service” model available to de-risk capex and performance?
• Stacked value: Beyond fertilizer, is there a credible path to use ammonia for backup or seasonal energy, improving overall project economics?

Bottom line

On-farm green ammonia aligns with two enduring farm priorities—control over critical inputs and resilience against volatility. While not a fit for every operation, the combination of falling renewable power costs, maturing modular plants, and emerging incentive frameworks is turning a century-old industrial chemistry into a farm-scale tool. For growers who already handle anhydrous ammonia and have access to cheap clean power, the next fertilizer factory may be closer than the nearest rail siding: it might be in the equipment yard.