Green hydrogen is gaining global attention as a clean energy solution for industries that are difficult to decarbonize, such as steel, chemicals, and long-distance transport. While the technology is promising, large-scale projects remain expensive and complex. They require major investments, reliable infrastructure, and long-term buyers—factors that are not yet fully developed in many countries.
This challenge is particularly relevant for Jordan. The country imports more than 90% of its energy, making it highly exposed to global price fluctuations. Over the past decade, Jordan has made strong progress in renewable energy, with solar and wind now accounting for around 25–27% of installed electricity capacity.
Jordan also has strong natural advantages for green hydrogen. Solar radiation exceeds 2,000 kWh per square meter per year, and several regions have good wind resources. The port of Aqaba provides access to export markets, making Jordan a promising location for producing green hydrogen and green ammonia.
However, hydrogen projects are more complex than traditional renewable energy projects. They require several systems working together: renewable electricity, water supply (often through desalination), hydrogen production, storage, and export infrastructure. This creates multiple risks, including uncertain demand, high upfront costs, and evolving regulations.
Public–private partnerships (PPPs) can help manage these risks. Jordan already has experience using PPP-style models to develop more than 2.5 gigawatts of solar and wind capacity, mainly through long-term contracts with private developers.
For green hydrogen, Jordan will need to expand beyond traditional PPP approaches and adopt a mix of models and contracts suited to this new sector.
One key model is the Build–Own–Operate–Transfer (BOOT) model, where a private company builds and operates a project for 20–30 years before transferring it to the government. This helps reduce public spending while ensuring long-term national ownership.
Another option is the Build–Own–Operate (BOO) model. In this case, the private sector retains ownership permanently. This can attract more investment but requires strong regulation to protect public interests.
Jordan can also use Design–Build–Operate (DBO) contracts, where a private partner designs, builds, and operates the facility, while the government retains ownership. This model works well for supporting infrastructure such as desalination plants or hydrogen storage systems.
For larger developments, hydrogen hub PPPs are especially relevant. Under this approach, the government invests in shared infrastructure—such as water, grid connections, and port facilities—while private companies focus on hydrogen production. This reduces duplication of costs and lowers risks for investors.
In addition to these models, specific contract types are critical for success. One of the most important is the offtake agreement, which guarantees that hydrogen or ammonia will be purchased over a long period. Without this, investors face too much uncertainty.
Other useful contracts include:
- Power Purchase Agreements (PPAs): to secure renewable electricity supply for hydrogen production
- Hydrogen Purchase Agreements (HPAs): to ensure stable demand for hydrogen output
- Concession Agreements: granting private developers the right to build and operate infrastructure under government oversight
- Availability-based contracts: where payments depend on performance rather than market demand, reducing investor risk
Financing remains a major challenge. Large projects can cost billions of dollars and typically depend on 60–70% debt financing. To make them viable, support from institutions such as the World Bank and the European Bank for Reconstruction and Development is often needed. These institutions provide concessional finance, guarantees, and blended funding that help reduce risk and attract private capital.
In the early stages, the government must also take a leading role. This includes investing in infrastructure, setting clear regulations, and sometimes acting as a buyer or guarantor. Without this support, private investors may hesitate.
Other countries in the region are already moving ahead. Saudi Arabia and the UAE are developing large hydrogen projects with strong government backing, while Oman and Egypt are using mixed PPP approaches. Jordan is still at an early stage, with most projects in planning and relatively small in scale.
In the end, green hydrogen in Jordan will not grow through market forces alone. It requires well-designed PPP models and contracts that balance risks between the public and private sectors. With the right approach, Jordan can turn its renewable resources into a new clean energy opportunity and become part of the global hydrogen economy.
