- Aim to become a regional hub
- Plant in Aqaba to cost $1bn
- Projects have been problematic
Jordan aims to become a green hydrogen and ammonia exporter in its 2025-2035 energy strategy, which focuses on developing several related projects.
Analysts say such projects could support Jordan’s economy and attract investment, although competition is intensifying across the region and delays to major projects have exposed challenges in scaling up green fuel exports.
Jordan’s strategy, details of which were published by the energy and mineral resources ministry this week, assumes two “basic” and “optimistic” scenarios, including projected GDP growth of 2.75 percent and 5.6 percent respectively.
The renewable energy share of the Arab country’s energy mix rises from about 23 percent at present to 40 percent in 2035 in the basic scenario, while it reaches 50 percent in 2033 and 55 percent in 2035 in the optimistic scenario.
Both scenarios project a sharp rise in domestic gas production and the beginning of green hydrogen production of about 500,000 tonnes in 2035.
“As for green hydrogen, the strategy aims to begin commercial production by 2030, targeting an output of half a million tonnes by 2035, relying on renewable energy capacity ranging between 8 and 9 gigawatts,” the ministry said.
“The plan also aims to transform Jordan into a regional hub for green hydrogen production and export, supporting economic diversification and creating new job opportunities in the industrial and technological sectors.”
Green hydrogen is used in industrial decarbonisation, transportation fuel and energy storage, while green ammonia acts as a sustainable fertiliser by producing emission-free substances for agriculture and transporting green hydrogen over long distances. It also acts as a zero-carbon fuel for shipping and industrial engines.
Jordan last week signed an agreement with a joint UAE-Polish venture to build its first green ammonia plant at a cost of about $1 billion.
The Jordan Green Ammonia Company, which is owned by the UAE-based developer Fidelity industrial and Poland’s Hynfra, will construct the plant in Aqaba.
The project has a capacity of 100,000 tonnes per year and is the first among several hydrogen and ammonia projects planned by Jordan.
“Studies have shown that demand will continue to grow for hydrogen and ammonia… I believe Jordan can become a market player given the strong interest and commitment expressed by several foreign companies to set up such projects in Jordan over the past two years,” said Ahmed Al-Salaymeh, an engineering professor at Amman University.
“Such projects will help diversify its sources of income,” he added.
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In a study published last week, the Kuwait-based Organization of Arab Petroleum Exporting Countries (OAPEC) said demand for green hydrogen and ammonia would steadily grow to reach 260-280 million tonnes by 2050.
Demand will be driven mainly by the use of ammonia in the expanding maritime transport sector and as an energy intermediate, particularly fuel, it said, citing a study by the International Energy Agency.
It said ammonia prices were about $200-350 per tonne in 2021 but jumped to $1,200 in 2022 before they dropped to their normal levels of $410-420 with the gradual decline and improvement in energy market conditions in 2023. Prices surged again to almost $700 during the Iran crisis, it added.
“Several Arab countries like Saudi Arabia, Oman, Qatar and other OAPEC members have embarked on plans to establish such projects, benefiting from the integration of natural gas and renewable energy resources, in addition to their geographical location which allows easy access to global markets,” the 10-nation OAPEC said.
In Saudi Arabia, Acwa Power in February signed a preliminary agreement with Germany’s energy supply company EnBW to create a green ammonia corridor to help decarbonise hard-to-abate sectors in the European country.
In Morocco, a US-led consortium said in February it had signed an agreement to invest $4.5 billion in a green ammonia project, marking one of the North African country’s largest clean energy investments to date.
The ORNX consortium will build the plant in the southern Laayoune province with a production capacity of 100,000 tonnes of hydrogen and 560,000 tonnes of ammonia per year.
Planed projects in the region, however, have not been without problems.
A planned UK facility seen as critical to the world’s largest green hydrogen project – the $8.4 billion development at Saudi Arabia’s Neom – has been put on hold, raising questions over how the fuel will reach buyers in Britain.
US-based industrial gas company Air Products, the exclusive off-taker for hydrogen from the Neom Green Hydrogen Company, has paused development of its £2 billion ($2.7 billion) terminal at the UK port of Immingham due to uncertainty over UK government incentives.
The Immingham Green Energy Terminal was designed to import green ammonia from Neom and convert it back into hydrogen for British industrial use, linking Saudi exports with one of the G7’s largest economies and supporting the UK’s clean energy goals.
