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Al-Kharabsheh: We look forward to Jordan becoming a regional center for green hydrogen

Al-Kharabsheh: We are working on developing a regulatory framework to support investment in the field of green hydrogen

February 26, 2025 - Minister of Energy and Mineral Resources (MEMR) Dr. "Saleh Al-Kharabsheh" affirmed Jordan's commitment to developing the green hydrogen industry, during the fourth roundtable held today, Wednesday, to present the final results of the comprehensive study on the joint infrastructure business model for green hydrogen projects in cooperation with the European Bank for Reconstruction and Development and a number of partners.

Al-Kharabsheh indicated that Jordan aspires to become a global center for green energy, with a focus on enhancing the competitiveness of green hydrogen production and reducing the cost of green ammonia production, adding that the government is working on developing an integrated regulatory framework to support investments in this field.

Al-Kharabsheh pointed out that some companies working with the government in the field of hydrogen have reached advanced stages, and that the government is currently working on determining the type of incentives that can be provided to investors to facilitate their work and achieve the desired benefit for both parties.

Al-Kharabsheh also expressed his hope that the meeting participants would agree on mechanisms that would help reduce the cost of producing green ammonia and make it more globally competitive, in line with the green hydrogen strategy that aims to promote Jordan as a major center for green energy production, not only for local consumption but also for export.

For his part, Minister of Investment Muthanna Gharaibeh stressed that local manufacturing would be a key element in the investment strategy, noting that the government is working to establish an integrated economic zone to support production chains related to renewable energy.

For her part, Secretary-General of (MEMR) Eng. Amani Al-Azzam indicated that the Jordanian government has made significant progress in the regulatory framework required to create a supportive environment for the development of green hydrogen in Jordan. She explained that the steps taken by the government to support the hydrogen industry include updating the Electricity Law to include energy storage, and facilitating the establishment of special transmission lines to directly link renewable energy to the hydrogen industry, allowing for avoiding any restrictions on the grid.

Among the supporting steps, according to Al-Azzam, is the approval of the justifications for a new gas law for the first time in Jordan, which has been approved by the Council of Ministers and is now awaiting final ratification by Parliament. This law will include provisions specific to green hydrogen, in addition to enabling the construction and operation of dedicated pipelines for transporting hydrogen.

Al-Azzam called on the participants to intensify discussions with representatives of the Aqaba Special Economic Zone Authority, the Ministry of Investment, and the Ministry of Finance on the proposed tax system and investment incentives.

For her part, Gretchen Perry, Regional Director for the Mediterranean at the European Bank for Reconstruction and Development, said that the European Bank for Reconstruction and Development is leading a series of roundtable discussions on the development of green hydrogen in Jordan, and this comes as interest in the green hydrogen sector continues to grow.

Perry pointed out that factors such as Jordan’s abundant renewable energy resources, strategic location, phosphate market, and mineral resources make Jordan a prime destination for green hydrogen investment, in line with Jordan’s goals and ambitions included in the Economic Modernization Vision.

Perry stressed the EBRD’s commitment to supporting the Jordanian government and its partners in promoting green hydrogen investments, noting that the bank, through the consulting firm ILF, was able to define the technical mission for developing a green hydrogen hub within the Aqaba Special Economic Zone, evaluate different options for shared infrastructure, and address technical and commercial arrangements for shared infrastructure. The meeting aims to enhance cooperation between the government and the private sector to ensure maximum economic benefit from green hydrogen projects, and stimulate investment in clean energy to support the national economy and contribute to achieving global goals to reduce carbon emissions.