It is commonly used as a leavening agent in baking, especially in making cookies and biscuits. When heated, ammonium bicarbonate breaks down into ammonia, carbon dioxide, and water, which cause the dough to rise and become light and fluffy. It is also used in the production of ammonium salts, ceramics, dyes, and pharmaceuticals. Ammonium bicarbonate has a strong ammonia smell and taste and is highly soluble in water. However, it is unstable and decomposes rapidly in moist environments, so it should be stored in a cool, dry place.