Jordan’s bold hydrogen ambition needs quick action…

Hydrogen has an essential role to play in the global energy transition. As many countries seek to seize some of the market opportunities, Jordan is poised to become a major exporter of this energy carrier. اضافة اعلان

The Kingdom has long been at the center of the global energy supply market. He brings solid experience, a strong asset base, and critical geopolitical relationships and partnerships that are critical in determining the future of import and export dynamics.

According to a recent study by PWC, the MENA region could produce around 200 million tonnes of green hydrogen by 2050, worth $300 billion per year, and will contribute 10-20% to the global market. hydrogen.

It appears that many regions now aspire to become the new hydrogen hub. This market is constantly growing by supplying blue and gray hydrogen. In this context, the demand will increase considerably, reaching up to 580 million megatons by 2050.

Hydrogen markets will begin to develop as market foundations are in place. Jordan’s national hydrogen strategy should focus on global energy knowledge, international experience and natural gas-based blue hydrogen (via the Fajr pipeline and NPC) as a step towards hydrogen green based on renewable energy.

The focus should be on blue hydrogen for export markets via ammonia shipments. Supply hubs will emerge as the market matures. Green hydrogen will start to have a strong preference and enter niche markets.

While investments in renewable energy globally exceeded $365 billion last year, combined investments in energy storage, carbon capture and the hydrogen value chain do not were only $12 billion. It’s not enough. The energy transition will require more than $250 billion in investments over the next 30 years.

The 27th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change will take place in Sharm el-Sheikh, Egypt. We need to focus on practical solutions that will help solve the trilemma of ensuring an accessible, affordable and sustainable energy supply.

Green hydrogen must be added to Jordan’s 2020-2030 energy strategy, including climate, transport and industrial ecosystem policies, to serve as a basis for the private sector. It should help attract foreign investment and development cooperation.

This requires a collective effort based on transparency, collaboration and innovation; interested parties can meet the decarbonization commitments of companies and countries, successfully deploying green hydrogen to open a new chapter of renewable energy transformation.

Jordan ranked first in the Arab world for the percentage of installed capacity of renewable energy sources and third for total energy produced, with 29%. The most difficult problem is the lack of storage capacity, since the electrical capacity is around 6,500 MW, while the consumption amounts to 3,500 MW.

Investing in green hydrogen could help the government reduce its dependence on fossil fuels, increase the penetration of renewable energy and build the resilience of local energy systems. This green strategy will support the decarbonization of energy-intensive industries; this particular electricity sector was the largest contributor to CO2 emissions in Jordan in 2018. The process will fulfill the Kingdom’s commitment to reduce GHG emissions by 14% by 2030.

Therefore, an integrated policy must achieve market penetration and overcome initial resistance. However, Jordan faces many challenges. These include the regulatory framework and other challenges associated with the implementation of hydrogen applications, such as infrastructure, water scarcity, financing and skilled human resources.

The main driver will be close collaboration between the private and public sectors and a clear national strategy for green hydrogen. In addition, joint efforts with international partners, as well as government grants and incentives, would divide the risk. Therefore, issuing a green bond signals transition efforts that reduce the risk of being knocked down by the tidal wave of change to come.

Green hydrogen must be added to Jordan’s 2020-2030 energy strategy, including climate, transport and industrial ecosystem policies, to serve as a basis for the private sector. It should help attract foreign investment and development cooperation. All this allows the commercialization of green hydrogen by creating a market place and reducing costs.

A long-term contract with the private sector can be essential to provide certainty to investors and make the market more accessible.

Jordan needs to strengthen academic R&D activities to gain technology leadership and training programs and industry programs with international partnerships to prepare skilled manpower to deploy the hydrogen economy across its vast supply chain. value.

Hamzeh S. Al-Alayani is a board member of a Jordanian public government investment management company and a regular commentator on regional energy and industrial issues.

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