AMMAN — Jordan on Sunday signed its first major investment agreement in the green ammonia sector, marking a landmark $1 billion project to advance the Kingdom’s clean energy transition and boost its position as a regional hub for low-carbon fuels.

 

The agreement was signed between the Ministry of Energy and Mineral Resources and the Jordan Green Ammonia Company, a Polish-Emirati consortium with Dutch technical partners, to produce green hydrogen using solar energy through an off-grid system fully independent of the national electricity grid.

 

Total capital investment is estimated at nearly $1 billion, with financial closure targeted for September 2027 and commercial operations scheduled to begin in November 2030.

 

Minister of Energy Saleh Kharabsheh told The Jordan Times that the agreement marks a “strategic milestone” in Jordan’s energy transition journey, reflecting the Kingdom’s growing ability to attract advanced clean energy investments and reinforcing international confidence in its regulatory and investment environment.

 

He said the project will serve as a cornerstone in Jordan’s broader strategy to diversify energy sources, reduce carbon emissions, and position the Kingdom within global supply chains for clean fuels and green industrial products.

 

Kharabsheh highlighted that the project integrates multiple components, including renewable energy facilities, hydrogen production units, desalination plants, and export infrastructure, making it a major integrated industrial ecosystem.

 

"The facility will be supported by up to 550 megawatts of solar generation capacity, along with advanced energy storage systems designed to ensure continuous and stable production," he said, adding that the hydrogen will be converted into green ammonia, with an expected annual production of around 100,000 tonnes."

 

The minister pointed to the Kingdom’s national hydrogen roadmap, launched in 2022 with international support, which laid the regulatory foundations for attracting large-scale investments, noting that rising investor interest in green hydrogen and ammonia reflects growing confidence in Jordan as a regional clean energy hub.

 

Kharabsheh stressed that feasibility studies have already confirmed the project’s economic viability, noting that preparatory work began in October 2023 with the signing of a memorandum of understanding with the developer, marking the start of a structured investment process that has since progressed through technical and financial stages.

 

He also noted that the company has already invested around $10 million out of a planned $30 million at the pre-agreement stage.

 

The minister also said the project is expected to generate “significant” direct and indirect job opportunities during both construction and operational phases, stressing that priority would be given to Jordanian labour across technical, operational, and administrative roles.

 

Kharabsheh highlighted that the project has been strategically located in Aqaba due to its export-oriented nature and logistical advantages, adding that the facility will rely on the Port of Aqaba for shipping green ammonia to international markets, particularly Europe and Asia, where demand for low-carbon industrial fuels is expected to grow significantly.

 

Kharabsheh said Aqaba offers key competitive advantages, including developed infrastructure, investment incentives, available land, and its role as Jordan’s primary maritime gateway. He added that supporting infrastructure for production, storage, and export operations will be further developed as the project advances.

 

On environmental impact, Kharabsheh said the project is expected to cut carbon emissions by more than 200,000 tonnes annually compared with conventional natural gas-based ammonia production, supporting Jordan’s national climate commitments and long-term decarbonisation goals.

 

The minister also said that the project will rely entirely on dedicated seawater desalination plants to meet its operational needs, with no use of potable water resources.

 

He also stressed that comprehensive environmental and water impact assessments will be conducted to safeguard national water security.

 

The minister said an environmental cost mechanism will be applied per cubic metre of water used, ensuring strict environmental oversight and sustainable resource management throughout the project’s lifecycle.