Nikkiso’s Strategic Move in Ammonia Handling for Green Energy: Assessing the Investment Implications of Nikkiso’s New Pump Launch at Gastech 2025

The global energy transition is accelerating, and companies that can bridge the gap between traditional infrastructure and emerging green technologies are poised to capture significant value. Nikkiso Co., Ltd., a leader in cryogenic equipment and industrial gas solutions, has positioned itself at the forefront of this shift with its recent ammonia pump innovations unveiled at Gastech 2025. The company’s strategic investments in ammonia handling systems—designed to support decarbonization in maritime and power generation sectors—highlight its potential to benefit from the growing demand for low-carbon fuels.

AIP Approval and Technological Edge

Nikkiso’s ammonia fuel supply system, which received Approval in Principle (AIP) from the American Bureau of Shipping (ABS) in September 2024, represents a critical step forward in maritime decarbonization. The system integrates high-efficiency pumps and an advanced fuel management system, enabling retrofitting of existing vessels or integration into new builds [1]. This aligns with the International Maritime Organization’s (IMO) 2050 net-zero emissions target, a regulatory tailwind that could drive demand for ammonia as a carbon-free marine fuel.

The company’s innovation extends beyond shipping. Nikkiso has also developed a submerged liquid ammonia pump for thermal power plants, utilizing a “canned” design that allows direct immersion in ammonia storage tanks. This technology addresses safety and efficiency challenges in handling ammonia, a key hydrogen carrier, and supports the transition from coal-fired power to cleaner energy sources [2]. By 2026, Nikkiso plans to commercialize this pump, further solidifying its role in the energy transition [3].

Market Dynamics and Growth Projections

The ammonia pump market is gaining momentum, driven by green ammonia’s dual role as a fertilizer feedstock and a renewable energy carrier. The U.S. ammonia pump market alone is projected to grow from $1.5 billion in 2024 to $2.5 billion by 2033, with a compound annual growth rate (CAGR) of 6% [4]. This growth is fueled by advancements in smart pump technologies, including IoT-enabled predictive maintenance and corrosion-resistant materials, which enhance operational reliability and compliance with stringent environmental regulations [5].

Nikkiso’s competitive positioning is further strengthened by its dominance in the broader cryogenic pump market. The company holds approximately 50% market share in this specialized sector, a testament to its decades-long expertise in LNG and hydrogen infrastructure [6]. With the global cryogenic pump market expected to reach $10.53 billion by 2033, Nikkiso’s expansion of its Wurzen, Germany facility in 2024 underscores its readiness to meet surging European demand for ammonia and hydrogen projects [7].

Strategic Partnerships and Competitive Landscape

Nikkiso’s partnerships amplify its strategic relevance. For instance, its collaboration with Kawasaki Heavy Industries on hydrogen-fueled ships highlights its integration into high-profile decarbonization projects. The company’s pump units are critical to these vessels’ hydrogen fuel supply systems, a niche where few competitors operate [8]. Meanwhile, in the ammonia heat pump segment, Nikkiso faces competition from established players like Linde PLC and Chart Industries, but its focus on safety, efficiency, and customization for green energy applications provides a differentiation edge [9].

The company’s 2026 launch of a liquid ammonia pump for thermal power generation—aimed at reducing CO2 emissions—further diversifies its revenue streams. This product aligns with global efforts to replace coal with ammonia in power plants, a trend gaining traction in Asia and Europe [10].

Investment Implications

For investors, Nikkiso’s ammonia pump initiatives present a compelling case. The company is capitalizing on two megatrends: the decarbonization of hard-to-abate sectors (shipping, power) and the global push for hydrogen and ammonia as energy carriers. Its AIP approvals and partnerships with industry leaders reduce technical and regulatory risks, while its market leadership in cryogenics ensures a robust foundation for scaling ammonia-related offerings.

However, challenges remain. The ammonia market is still in its infancy, with infrastructure gaps and high production costs for green ammonia posing near-term hurdles. Additionally, competition from emerging players in the canned motor pump segment—projected to grow at a 6.2% CAGR through 2030—could pressure margins [11].

Conclusion

Nikkiso’s ammonia pump innovations are more than incremental upgrades; they are strategic bets on the future of energy. By aligning its technical expertise with the decarbonization needs of maritime and power sectors, the company is well-positioned to capture a disproportionate share of the green energy transition’s upside. For investors, the key will be monitoring the pace of ammonia adoption and Nikkiso’s ability to maintain its technological lead in a rapidly evolving landscape.

Source:
[1] Marine momentum: AiPs for bunkering, fuel systems and vessels, [https://ammoniaenergy.org/articles/marine-momentum-aips-for-bunkering-fuel-systems-and-vessels/]
[2] American Bureau of Shipping, [https://news.cision.com/american-bureau-of-shipping?k=alternative+fuels]
[3] Nikkiso Clean Energy develops submerged ammonia pump, [https://www.linkedin.com/posts/marius-preston-56ab24102_nikkiso-clean-energy-developed-the-first-of-its-kind-activity-7238761968591867905-eeOR]
[4] United States Ammonia Pump Market: Key Highlights, [https://www.linkedin.com/pulse/united-states-ammonia-pump-market-key-highlights-innovateiq-vista-hawme/]
[5] North America Ammonia Heat Pump Market Developments 2025, [https://www.linkedin.com/pulse/north-america-ammonia-heat-pump-market-developments-cpnxe/]
[6] Developing Cryogenic Pumps to Feed Extremely Low-, [https://bright.nikkiso.co.jp/en/article_en/production_en/cryogenic-pump]
[7] Global Cryogenic Pump Market Size To Worth USD 10.53 Billion By 2033, [https://www.globenewswire.com/news-release/2024/07/16/2913473/0/en/Global-Cryogenic-Pump-Market-Size-To-Worth-USD-10-53-Billion-By-2033-CAGR-Of-10-67.html]
[8] Nikkiso has received an order for a pump unit of hydrogen-fueled ships, [https://www.nikkiso.com/news/2025/nikkiso-has-received-an-order-for-a-pump-unit-of-hydrogen-fueled-ships.html]
[9] Cryogenic Pump Market Size, Competitive Insights, Trends, [https://www.verifiedmarketreports.com/product/cryogenic-pump-market/]
[10] Global Cryogenic Pump Market Size, Trend, Growth, [https://www.sphericalinsights.com/press-release/cryogenic-pump-market]
[11] Global Canned Motor Pumps Market Report, [https://www.360researchreports.com/press-release/canned-motor-pumps-market-16525]