(Berlin / Germany) – Jordan possesses exceptional renewable energy potential that could be used for the production of green hydrogen. The high levels of solar radiation and large wind corridors provide "a solid foundation for building a large-scale hydrogen economy," according to the authors of the study "Green Hydrogen & Ammonia: Industrial Applications, Market Potential, and Strategic Opportunities," published by the Export Initiative Energy of the Federal Ministry for Economic Affairs and Energy (BMWi).
Sector analysis Jordan: Green hydrogen and ammonia – Industrial applications, market potential and strategic opportunities. © BMWE
The study examines the extent to which green hydrogen can be integrated into Jordan's commercial and industrial sector (C&I sector). Its aim is to identify viable business opportunities, particularly for companies based in Germany, to pinpoint key challenges, and to outline a roadmap for the integration of green hydrogen that aligns with Jordan's energy and industrial policy objectives. The country is pursuing ambitious plans to establish green hydrogen as a central component of its energy transition.
Wide range of options for companies
For German companies, Jordan's burgeoning hydrogen market opens up a wide range of opportunities – particularly in the areas of renewable energies, electrolysis technologies, industrial applications, and infrastructure development. The political framework is also favorable: The government is working on a National Hydrogen Strategy and is promoting projects for integrating hydrogen and ammonia into industrial processes such as fertilizer production and refineries. This demonstrates a clear commitment to investing in a competitive hydrogen and ammonia economy. According to the analysis, German suppliers could contribute their technical expertise and experience in developing efficient and sustainable energy solutions.
Of particular interest is the conversion of the Jordanian fertilizer industry from imported ammonia to locally produced green hydrogen for ammonia production – “an area where German technologies could enable significant efficiency gains.” Furthermore, Jordan’s strategic location, with its port in Aqaba being developed by the state-owned Aqaba Development Corporation (ADC), makes the country a potential export hub for green hydrogen, ammonia, and related products to Europe and Asia.
Dynamic environment for investments
International partnerships and planned major projects, such as in seawater desalination and the production of green ammonia, also signal a dynamic investment environment. German companies could not only participate in this development but also "actively contribute to shaping a sustainable energy future in the region." Green hydrogen could play a central role in Jordan's energy transition.
- Contribution to the decarbonization of industry: Integration of hydrogen into processes such as fertilizer production, oil refining, and steel and cement production
- Strengthening energy securityDiversification of the energy mix and reduction of dependence on fossil fuels through the use of hydrogen-based solutions
- International trade: Utilizing infrastructure and business relationships to position Jordan as a regional leader in green hydrogen exports
However, the target market analysis states that Jordan faces a number of challenges:
- regulatory hurdles: Despite the draft National Hydrogen Strategy and the planned amendments to the Gas Act, the regulatory framework needs to be further specified and implemented in practice in order to attract investment, ensure competitiveness and promote market development.
- technical and environmental challenges: The water shortage requires investment in seawater desalination, as well as the expansion of infrastructure, particularly in ports and in the area of renewable energies.
- economic challenges: High initial investments in hydrogen infrastructure, electrolyzers and renewable energy sources required close cooperation between the public and private sectors as well as access to affordable financing.
The study concluded: “Jordan’s extensive renewable energy resources, industrial potential, and strategic location are promising and offer opportunities for the development of green hydrogen and ammonia.” At the same time, regulatory uncertainties and environmental and economic challenges require careful management.
The target market analysis for Jordan, "Green Hydrogen & Ammonia: Industrial Applications, Market Potential, and Strategic Opportunities," is available free of charge as a PDF (English, 57 pages). It is published by the German Society for International Cooperation (GIZ) GmbH.
We are presenting the country analyses for hydrogen markets from the BMWE's Export Initiative Energy in a loose series. So far, the following have been published: Norway ; Great Britain ; Vietnam.
Photo above
Jordan has ambitious plans to establish green hydrogen as a key component of its energy transition: The port of Aqaba could become a hub for exports to Europe and Asia. © Aqaba Development Corporation (ADC)
