Key Highlights
Jordan and China’s United Energy Group (UEG) have signed a preliminary MoU to develop a $1.155 billion green hydrogen project in Jordan. The facility will produce 200,000 tonnes of green ammonia annually using renewable energy sources, primarily for export. This initiative is part of Jordan’s strategy to diversify energy, enhance economic growth, and support decarbonization. The project is expected to create jobs, stimulate local industries, reduce greenhouse gas emissions, and potentially set a regional precedent for sustainable energy initiatives.
Background
On September 15, 2025, Jordan's Ministry of Energy and Mineral Resources signed a Memorandum of Understanding (MoU) with China’s United Energy Group (UEG) to explore the development of a green hydrogen production facility. The project aligns with Jordan’s national strategy to reduce fossil fuel dependence and become a hub for renewable energy. Jordan has significant solar and wind potential, making it an attractive location for large-scale green hydrogen initiatives.
Project Overview
The proposed facility will use solar and wind power to generate green hydrogen through electrolysis. This hydrogen will then be converted into green ammonia, a key component for fertilizers and a clean energy carrier. Desalinated seawater is planned for electrolysis, ensuring a sustainable water supply. Development will proceed in phases, beginning with land assessments, technical feasibility studies, and cost optimization analyses. The project’s design aims to maximize efficiency and minimize environmental impact.
Strategic Importance
This initiative positions Jordan as a regional leader in renewable energy and green hydrogen production. Leveraging its abundant solar and wind resources, Jordan aims to attract foreign investment and stimulate economic development. The collaboration with UEG, which has experience in regional energy projects, enhances the project’s feasibility and credibility. Establishing Jordan as a green hydrogen hub could strengthen its geopolitical and economic influence in the Middle East.
Economic and Environmental Impacts
Economically, the project will create employment, boost local industries, and expand Jordan’s export capabilities. Environmentally, green hydrogen and ammonia production will reduce greenhouse gas emissions compared to traditional fossil fuel-based methods. The project could serve as a model for similar initiatives across the Middle East and North Africa. Local communities may benefit from infrastructure development, and the project supports Jordan’s commitments under international climate agreements.
Future Outlook
While the MoU represents a major step, project success depends on investment, regulatory approvals, and infrastructure development. The upcoming feasibility study will provide critical insights to guide subsequent phases. If successful, this project may set a benchmark for sustainable energy transitions in other nations. The initiative could also inspire additional regional collaborations in green hydrogen and renewable energy development.