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Jordan approves comprehensive framework to develop green hydrogen sector

Amman: Jordan’s Cabinet has given the green light to a comprehensive framework designed to fast-track the development of green hydrogen projects across the Kingdom. This newly approved mechanism outlines a strategic vision to position Jordan as a regional leader in green hydrogen production, according to the Jordan News Agency, Petra.

The Ministry of Energy and Mineral Resources spearheaded the creation of this framework. It emphasizes Jordan’s existing natural resources and favorable regulatory environment, aiming to present the country as an attractive destination for investment in this growing sector. The ministry describes the framework as a crucial step towards establishing Jordan as a hub for green hydrogen, reports Zawya.

The plan leverages Jordan’s abundant renewable energy resources, particularly solar and wind power, alongside its vast, undeveloped lands that are ideal for green hydrogen development.

The approved plan includes a detailed strategy to facilitate investment in the green hydrogen industry. It specifically designates strategic sites in southern Jordan for renewable energy production. Additionally, an industrial zone within the Aqaba Special Economic Zone Authority will be set aside for building green hydrogen plants and water desalination facilities.

The plan also involves developing shared infrastructure in Aqaba. This includes desalination units, green ammonia storage facilities, export terminals, and other essential logistics needed to implement these large-scale projects.

To draw investors, the mechanism offers a package of incentives, supported by existing laws such as the Investment Environment Law and the Aqaba Special Economic Zone Law. It also establishes a clear path for investors, guiding them from signing initial agreements and conducting feasibility studies to securing land-use agreements and finalizing investment contracts.

A national green hydrogen committee, comprising key stakeholders, has been formed by the government. This committee will be responsible for overseeing the implementation of the strategy and coordinating related investments. These efforts align with Jordan’s broader goals of strengthening food security, increasing exports, and transitioning to a sustainable, green economy.

Just last week, the government approved two land-use agreements for conducting feasibility studies for green hydrogen production projects: one with Jordan’s Philadelphia Solar and another with Germany’s Enertrag. These agreements are part of the government’s wider strategy to establish Jordan as a regional hub for green hydrogen.

With these latest approvals, the number of confirmed land-use agreements for hydrogen development now stands at six. These six firms, out of 13 previously signed with leading energy companies, have completed their preliminary feasibility studies and technical reports and are now moving to the land allocation stage. During this phase, the companies will conduct detailed measurements of renewable energy sources to prepare their final feasibility studies, with investment decisions hinging on these outcomes.

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