Amman: The Ministry of Energy and Mineral Resources announced that the government has approved an extension of the framework agreement with Fortescue Future Industries for its green hydrogen and ammonia production project through 2026.
According to Jordan News Agency, the decision aims to standardize investment agreements, including the adoption of a unified model for companies looking to invest in green hydrogen. This model is designed to outline the incentives offered and the expected returns for investors.
The extension follows the outcomes of the fourth green hydrogen roundtable, held on February 26-27, which gathered prospective developers, representatives from the European Bank for Reconstruction and Development (EBRD), and consulting firm ILF. The discussions focused on developing a shared infrastructure framework for green hydrogen projects in the country.
The ministry reported that the meeting presented key findings of a joint infrastructure study for green hydrogen in Jordan. Among the most significant outcomes was the need to establish a viable investment model for both developers and financiers, ensuring the bankability of projects and encouraging capital commitment.
The government has made progress in building the regulatory framework necessary to foster a supportive environment for green hydrogen, the ministry stated. Measures include updating the electricity law to cover energy storage and facilitating the construction of dedicated transmission lines to connect renewable energy directly to hydrogen production, thereby bypassing potential grid constraints.
Jordan has also approved the legal basis for a new gas law, the first of its kind in the country, which will include provisions specific to green hydrogen and enable the construction and operation of dedicated hydrogen pipelines.