Assessing Jordan’s green hydrogen potential for the commercial & industrial sector
This sector analysis provides an overview of Jordan's hydrogen market, offering cost estimations for producing green hydrogen using renewable energies and guidelines for establishing hydrogen-related businesses. It targets German and European companies, focussing on partnerships with local entities that utilize hydrogen as a primary feedstock for industrial processes.
Jordan offers political and economic stability, abundant solar and wind resources, and a strong governmental commitment to energy diversification. Establishing a business in Jordan allows forming partnerships with local companies and creating defossilised solutions for industries. Locally produced green hydrogen reduces reliance on imported fossil-based hydrogen, enhancing energy independence. As electrolysis technology costs decline and demand for defossilised products increases, the market for green hydrogen is expected to grow.
Green hydrogen and its derivatives offer benefits such as defossilisation, energy storage, renewable energy integration, energy security, and economic opportunities. The analysis details production processes, input requirements, and associated costs. It also provides an overview of the import-export balance of hydrogen-based commodities and highlights local industries with high potential for transitioning to green hydrogen.
Focusing on solar PV-produced hydrogen, the analysis includes cost details in case studies. Interviews with local manufacturers reveal strong interest in producing green hydrogen. Business cases estimate system sizing, costs (including electrolyser systems and solar PV plants), and the levelized cost of hydrogen (LCoH) based on local solar resources, demonstrating green hydrogen's use in green ammonia and food production. The Renewable Energy and Energy Efficiency Law (REEEL) and the Master Strategy for the Energy Sector 2020-2030 have increased the share of renewables in Jordan. The government is exploring green hydrogen to enhance energy security and maximize renewable energy utilisation.
