Rystad Energy predicts that by 2035, 174 export terminals will primarily convert hydrogen to ammonia, accounting for 62% of hydrogen exports or about 13.5 million tonnes annually.

The Oslo analyst estimates that traded volumes in clean ammonia will reach 76 million tonnes by the mid-2030s, a four-fold increase over 2020 volumes.

It is projected that by the year 2050, the amount of ammonia exported could exceed 120 million tonnes per year, and most of it will come from Africa and North America.

Experts suggest that using ammonia as a carrier for hydrogen energy has several advantages. It enables larger amounts of energy to be transported over longer distances in a smaller space.

It is also seen as more energy-efficient to ship by sea than hydrogen, which has a boiling point of -253°C.

There is also already a global trade in ammonia with a fleet of dedicated tankers and reception terminals.

Once ammonia is delivered, it can be split into hydrogen and nitrogen through ammonia cracking. The hydrogen can serve as a climate-neutral energy source. Japan and Germany have both adopted national hydrogen strategies to achieve net-zero emissions.

Rystad suggested that some project developers could decide to pursue dual strategies of partially converting hydrogen to ammonia and/or looking at different transport options amid the likely scale of export projects and uncertainties surrounding future trade dynamics.

"Hydrogen penetration is moving quickly and globally, entering new geographies and outpacing market expectations. With the ammonia trade booming, there is an urgent need to leverage existing assets to their fullest potential," said Minh Khoi Le, head of Hydrogen Research at Rystad Energy.

"Converting LNG terminals could be a good solution, not only optimising current infrastructure but also spurring a re-evaluation of strategies that can cope with the scale of the expected market expansion," he added.