Jordan inks deal with ammonia firm for green hydrogen project

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Jordan’s Ministry of Energy and Mineral Resources has taken a major step towards enhancing the nation’s green energy prospects, formalising a memorandum of understanding (MoU) with the Jordan Green Ammonia Company (JGA).

This latest MoU marks the third such agreement in the realm of green hydrogen and green ammonia production, underscoring Jordan’s commitment to sustainable energy development.

The focal point of this partnership is to initiate a year-long preliminary feasibility study, which will lay the groundwork for a green hydrogen project with the potential to transform the nation’s energy landscape.

Minister Kharabsheh stated that this endeavour aligns with Jordan’s broader economic modernisation vision for the years 2020-2030, which places a strong emphasis on investing in green hydrogen production.

The ministry’s approach envisions capitalising on Jordan’s existing successes in the renewable energy sector and building upon them.

Crucially, the study’s outcomes will playa key role in determining the future course of action. Should the feasibility study yield promising results, the ministry is prepared to move forward with a formal framework agreement, ultimately culminating in a final investment agreement, as indicated by Minister Kharabsheh.

“This is the third agreement finalised by the Ministry for the production of green hydrogen and ammonia,” Kharabsheh said.

He said more agreements would be signed as part of Jordan’s green hydrogen strategy which “is ready and would be launched shortly.”

The minister also highlighted the enthusiasm shown by 12 corporations willing to collaborate in Jordan’s green hydrogen production efforts. This underscores the mutually beneficial relationship between the Ministry of Energy and Mineral Resources and potential investment partners, further solidifying the nation’s green energy ambitions.

Wael Suleiman, the CEO of JGA, echoed these sentiments, highlighting Jordan’s strategic geographical location in the Sun Bel and the abundance of solar energy resources at its disposal.

“Today’s signing ceremony is a symbol of Jordan’s resolute determination to harness its abundant renewable energy resources. Our MoU serves as the blueprint for the collaborative efforts between private sector entities and the government to expand the potential of green hydrogen,” he said.

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JGA was established through a collaboration between the Polish hydrogen firm, Hynfra PSA, and the UAE-based chemical company, Fidelity Group.

“We take great pride in the fact that a company from our group will be able to bring our century-old Polish experience in ammonia synthesis to Jordan. It is our ambition for the Jordan project to be an optimal marriage of renewable energy possibilities and our unique know-how in producing green chemistry products,” commented Tomoho Umeda, CEO of Hynfra PSA.

Jordan’s green hydrogen mission

In 2020, the Jordanian Ministry of Energy and Mineral Resources (MEMR) released the 220-2030 Energy Strategy. Goals include the diversification of energy resources, expansion of renewable energy capacities, increasing investments, and strengthening international relations and collaborations, according to International PtX Hub.

By the end of 2030, the country envisages to have 48.5 % of the country’s electricity generation come from local energy sources. Producing green hydrogen could reduce Jordan’s reliance on fossil fuels – 91% of which are obtained through imports.

The array of potential applications for hydrogen in the country is vast, encompassing critical sectors such as crude oil refining, fertiliser manufacturing, gas-fired thermal power generation, urban transit buses, heavy-duty trucks, and the optimisation of port logistics.

Despite the potential, there are still significant challenges to be overcome. Chief among them is the pressing need for a comprehensive regulatory framework to govern the hydrogen sector.

Additionally, Jordan faces the complex issue f water scarcity, which poses a critical challenge to be addressed. According to UNICEF, the country is the second most water scarce in the world with annual renewable water resources less than 100m3 per person, significantly below the threshold of 500m3 per person which defines severe water scarcity.