Green Ammonia Moves to the Forefront of Poland’s Energy Debate

ENERGYGreen Ammonia Moves to the Forefront of Poland’s Energy Debate

On 21 April 2026, the Senate’s National Economy and Innovation Committee, chaired by Senator Waldemar Pawlak, and the Climate and Environment Committee, chaired by Senator Stanisław Gawłowski, held a joint session devoted to green hydrogen and ammonia in Poland’s energy transition. The meeting took place as Poland faces the need to make concrete regulatory decisions in this area.

Experts invited by the committees — Dr. Magdalena Dudek from the AGH University of Science and Technology’s energy centre and Aleksander Naumann, member of the management board of Hydrogen Poland — outlined the state of the global ammonia market, Poland’s production potential, and regulatory proposals for the government. The outcome of the committees’ work is expected to be a package of recommendations for the government, covering both the framework of a support system for the domestic hydrogen market and proposals for specific financial mechanisms.

Poland has a solid starting position. Domestic ammonia production capacity stands at around 2.8 million tonnes per year out of a total EU capacity of 17.8 million tonnes, while the country’s experience in ammonia production, transport and use stretches back more than a century. The global market currently produces around 180–185 million tonnes of ammonia a year, and by February 2026 more than 500 low-emission ammonia projects had been announced worldwide, with a combined planned capacity of about 404 million tonnes. The market is expanding rapidly, and Poland — with its well-developed large-scale chemical synthesis base and decades of industrial operating experience — has the potential to become a full participant in that growth.

Green ammonia, produced using hydrogen generated from renewable sources, has a broad range of industrial applications. Its first major use will be in the fertiliser industry and heavy chemicals, a sector that accounts for roughly 85% of global ammonia consumption. Replacing grey ammonia, made from natural gas, with its green equivalent could allow Polish chemical plants to avoid the growing production costs associated with conventional ammonia under the EU ETS and help them maintain competitiveness in the European market.

A second key area in the Polish context is the co-firing of ammonia with coal — a technology already being tested commercially by Japan’s JERA at its 1,000 MW-class unit in Hekinan, a scale comparable to Polish installations in Jaworzno and Kozienice. An ammonia share of 40–45% would reduce the emissions intensity of such a unit below the EU threshold of 550g CO₂/kWh, which could make it possible for Polish coal-fired units to remain in the system after 2028, when the derogation for the country’s most emission-intensive units expires.

Ammonia can also serve as a fuel for maritime and rail transport, as well as a hydrogen carrier in international trade, being easier to store and transport than hydrogen itself.

EU regulatory pressure gives these decisions a strong sense of urgency. Power plants emitting more than 550 g CO₂/kWh will lose access to the capacity market after 1 January 2028. In a pessimistic scenario, as much as 8.2 GW of capacity could be at risk. At the same time, the Carbon Border Adjustment Mechanism is imposing emissions-related charges on imported fertilisers and other energy-intensive products, pushing for decarbonisation across the production chains of steel, aluminium, cement and nitrogen fertilisers.

A key conclusion from the session is the need to create a dedicated support mechanism. Green ammonia production projects require long-term contracts lasting from 10 to 15 years, which the market is currently unable to provide on its own, as it is still based mainly on short-term gas-contract structures. Experts recommended an instrument combining support on both the producer and offtaker sides, modelled on Germany’s two-sided auction system under H2 Global. The estimated cost of such a Polish programme is around PLN 2 billion over a ten-year horizon — an investment that, with rising ETS allowance prices, could ultimately pay back with a surplus.

“Poland has everything it needs to become a leader in green ammonia in Central Europe — decades of chemical synthesis expertise, existing infrastructure and a vast industrial base that guarantees demand. One thing is missing: a support mechanism that links the readiness of the green ammonia production market with investment certainty, meaning a long-term offtake guarantee on the demand side. Exactly as happened in the renewable energy market over the past 20 years,” Aleksander Naumann said.

Geopolitical context

On 15 April 2026, Prime Minister Donald Tusk and Japanese Prime Minister Sanae Takaichi signed a declaration in Tokyo on a comprehensive strategic partnership, the highest possible level of diplomatic relations. The sectors listed explicitly for cooperation included the use of hydrogen and ammonia in energy.

Japan is grappling with a deep energy crisis. Since March 2026, the Strait of Hormuz has effectively been closed, while 94.2% of Japan’s oil imports had been coming from the Middle East. Tokyo has released the largest strategic reserves in its history, but that was only a temporary measure to limit the immediate effects of the crisis rather than a structural solution. A durable response requires changing both the energy carrier and the geography of supply. Green ammonia — producible wherever renewable power generation conditions are favourable and water is available — may be part of that answer, and Japan has the technologies that could accelerate such a shift, from ammonia burners and boilers to mature maritime logistics and long-term contracting models. Poland, with its production potential, chemical expertise and central European location, is a natural partner for Japan in this part of the world.

The agreement between Hydrogen Poland and the Hungarian Hydrogen Technology Association establishes a framework for regulatory cooperation for a Central European green ammonia supply chain, including clarification of RFNBO regulations and conditions for creating a Regional Hydrogen Bank. By building this regional bloc, Poland and Hungary become even more attractive partners for Japan and other global players.

What comes next

The recommendations developed by the two Senate committees are to be forwarded to the government. Their core consists of proposals concerning the shape of a Polish support mechanism for the green ammonia market, including the structure of financial instruments to reduce price and volume risk on both sides of the market — supply and demand — as well as a long-term contracting model and conditions for launching a programme similar to Germany’s H2 Global.

About Hydrogen Poland

Hydrogen Poland is a Polish industry association founded in 2021. It brings together businesses from the hydrogen economy sector, represents their interests at home and abroad, and supports the development of hydrogen as part of the energy transition. The association is also the initiator of the 3 Seas Hydrogen Council, a platform linking hydrogen organisations from Central and Eastern European countries.

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