Food and Beverage Companies Launch Green Ammonia Buyers Alliance
News related to:Center for Green Market Activation · 2 min read
Food and beverage companies have joined forces to accelerate the transition to green ammonia, a key component in reducing emissions from fertilizer production. The Center for Green Market Activation (GMA), in collaboration with RMI and 3Degrees, has launched the Green Ammonia Buyers Alliance (GABA), a new initiative aimed at driving the adoption of green ammonia as a sustainable alternative to traditional ammonia.
Ammonia production is a significant source of emissions in fertilizer manufacturing. Green ammonia, produced using renewable electricity and water, can eliminate nearly all emissions from this process. This makes it a crucial tool in the fight against climate change. The fertilizer industry generates an estimated 1.2 gigatons of CO₂ equivalent annually, and green ammonia offers a scalable pathway to significantly reduce these emissions.
Despite the potential of green ammonia, scaling its deployment has proven challenging. Many projects have been announced globally, but most still face the hurdle of securing sufficient demand to move forward. Food and beverage companies, many of which have set ambitious Scope 3 emission reduction targets, are positioned to address this gap. However, they sit several steps downstream from ammonia producers, creating a disconnect between potential demand and actual investment.
GABA aims to bridge this gap by bringing together leading food and beverage companies to collectively support the growth of the green ammonia market. Through a shared procurement process, GABA will aggregate demand for green ammonia and create a stronger market signal for producers, project developers, and investors. Member companies will purchase Environmental Attribute Certificates (EACs) directly from verified green ammonia producers, providing the revenue certainty needed to support new projects.
Kim Carnahan, CEO of GMA, emphasized the importance of collective action.
Thomas Koch Blank, Managing Director at RMI, highlighted the role of market signals in driving adoption.
GABA's approach mirrors similar market-based systems that have successfully channeled investment into renewable electricity, sustainable aviation fuel, decarbonized shipping, zero-emission heavy-duty trucking, and low-carbon construction materials. By leveraging the expertise of GMA, RMI, and 3Degrees, GABA provides companies with a proven, credible pathway to support green ammonia production. Members will benefit from technical expertise, transparent market design, and a competitive procurement process intended to direct demand toward the most credible and impactful green ammonia projects at the most competitive cost possible.
The initiative plans to launch its first pilot procurement in the fourth quarter of 2026, giving participating companies an opportunity to help establish one of the first collective demand signals for green ammonia-based fertilizers. GABA's inaugural procurement will offer unique opportunities for companies to inform program design and capture first-mover discounts through 2027.
Companies interested in joining GABA or learning more about upcoming procurement opportunities are encouraged to contact GMA directly. The launch of GABA marks a significant step in the decarbonization of the fertilizer industry and underscores the commitment of leading food and beverage companies to address climate change through innovative market-based solutions.