Amman – The Ministry of Energy and Mineral Resources affirmed the importance of the general framework for the proposed mechanism to develop green hydrogen projects, which was approved by the Council of Ministers today.

In a press statement, the Ministry indicated that the mechanism constitutes a comprehensive concept paper that outlines a strategic vision to transform Jordan into a regional hub for green hydrogen production. This vision leverages the country’s abundant renewable energy resources—solar and wind—and the vast areas suitable for developing green hydrogen production and export projects across the Kingdom.

The paper, prepared by the Ministry of Energy and Mineral Resources, highlights Jordan’s natural and regulatory advantages, which make it an attractive environment for investment in this vital sector.

The approved mechanism includes a comprehensive plan to facilitate investment in green hydrogen projects, starting with the identification of strategic sites for renewable energy production in the southern region of the Kingdom, and the allocation of an industrial complex in the Aqaba Special Economic Zone for establishing green hydrogen plants and water desalination facilities.

The mechanism also involves the development of shared infrastructure for green hydrogen projects, particularly in the Aqaba Special Economic Zone. This includes facilities for water desalination, green ammonia storage, export ports, and other essential shared components necessary for the implementation of such projects.

Moreover, the mechanism offers a range of investment incentives supported by existing legislation, primarily the Investment Environment Law No. (21) of 2022 and the Aqaba Special Economic Zone Law No. (32) of 2000.

The mechanism outlines a clear contractual framework for investors, beginning with the signing of a Memorandum of Understanding, followed by the preparation of technical and financial feasibility studies, land use agreements, and concluding with the final investment agreement. This reflects the government’s commitment to creating a stable and encouraging investment environment.

It is also worth noting that the government has formed a National Committee for Green Hydrogen, comprising various relevant stakeholders, to oversee the implementation of the strategy and regulate investments in alignment with the Kingdom’s vision to enhance food security, grow exports, and transition to a sustainable and diversified green economy.