Jordan Green Ammonia Signs Investment Agreement for Production Plant

Investment Agreement Signed in Amman

On May 10, 2023, Jordan Green Ammonia (JGA) formalized a comprehensive investment agreement with the Government of Jordan for the establishment of a green ammonia production plant. The signing took place at the Office of the Prime Minister in Amman, with H.E. Prime Minister Jafar Hassan in attendance. This agreement positions JGA as the first company globally to initiate such a project in Jordan, surpassing other international firms that have only progressed to preliminary stages since 2021.

Representing the Jordanian government, H.E. Saleh Al-Kharabsheh, the Minister of Energy and Mineral Resources, signed the agreement alongside Dr. Wael Suleiman, founder of Fidelity Group and CEO of JGA, as well as Tomoho Umeda, CEO of Hynfra, and Director Marlena Krohn. The agreement follows the approval of its terms by the Jordanian Council of Ministers, underscoring the government’s commitment to advancing renewable energy initiatives.

Project Details and Future Prospects

The planned facility, set to be constructed in Aqaba, will utilize solar energy for water electrolysis to produce green hydrogen, which will then be synthesized into ammonia. The project is designed to have a production capacity of 100,000 tonnes of green ammonia annually, supported by 550 MW of photovoltaic capacity and 500 MWh of energy storage, operating independently from the national grid. The estimated investment value is approximately USD 1 billion, with financial closure anticipated by September 2027 and commercial operations expected to commence by Q4 2030.

Dr. Wael Suleiman emphasized the project’s advanced stage of development, highlighting the strategic advantages of Aqaba in terms of logistics and energy. He noted that the focus remains on operational execution to ensure the project’s success, which is crucial for translating plans into tangible outcomes.

Strategic Importance of Green Ammonia

Green ammonia is increasingly recognized as a key energy carrier for the future, serving not only in fertilizer production but also as a co-firing fuel in coal-fired power plants, particularly in markets like Japan and South Korea. This dual role supports a gradual transition away from coal while utilizing existing infrastructure. Additionally, ammonia is viewed as a promising fuel alternative for the shipping industry, further enhancing its relevance in the global energy transition.

The Aqaba facility’s strategic location provides direct access to maritime routes connecting Europe and Asia, making it an ideal site for Jordan’s first export-oriented green ammonia facility. This aligns with broader energy policies in Poland, where recent agreements have emphasized cooperation in hydrogen and ammonia technologies. The JGA project exemplifies this strategic direction at the industrial investment level.

Partnerships and Competitive Landscape

The project has attracted notable partnerships, including a cooperation agreement with Topsoe, a leading provider of advanced technologies for energy transition. This collaboration is set to deliver the core technology for the green ammonia facility. JGA’s advancement to a binding investment agreement distinguishes it from other companies like Fortescue, Masdar, ACWA Power, Enertrag, and KEPCO–Xenel, which have yet to move beyond preliminary agreements.

Hynfra, a Polish developer, and Fidelity Group, a Jordanian firm, are collaborating to leverage their respective expertise in hydrogen technologies and regional market knowledge. This partnership is poised to enhance the project’s viability and success in the competitive landscape of green ammonia production.

Frequently Asked Questions

What is the significance of the green ammonia project in Jordan?

The project marks Jordan’s first formal initiative in green ammonia production, positioning the country as a player in the global energy transition.

When is the green ammonia facility expected to start operations?

Commercial operations are expected to commence in the fourth quarter of 2030.

What are the environmental benefits of green ammonia?

Green ammonia is produced using renewable energy sources, reducing reliance on fossil fuels and supporting decarbonization efforts.

Who are the key partners involved in the project?

Key partners include Hynfra, Fidelity Group, and technology provider Topsoe.

How does green ammonia contribute to energy security?

Green ammonia can be produced in various locations using renewable energy, reducing dependence on centralized hydrocarbon infrastructure.