Jordan is confidently moving toward creating an attractive and incentivized environment for strategic investments in the green hydrogen and ammonia sectors, aiming to cement its position as a regional trading hub for this fuel despite growing competition in the region.
اضافة اعلان
The recent Cabinet decisions have approved a set of incentives for green hydrogen projects located outside the Aqaba Special Economic Zone, signaling Jordan’s ambition to become one of the first countries in the region to produce, use, and export green hydrogen.
This initiative enjoys strong support from His Majesty King Abdullah II, who has consistently emphasized expansion in renewable and clean energy—especially green hydrogen—as an opportunity to speed up the transition toward a sustainable, clean-energy economy.
The newly introduced incentives include:
A reduced income tax rate of 5%, plus 1% national contribution.
Exemptions from customs duties, taxes, and import fees on all project equipment and fixed assets (including those imported by the investor, main contractor, or subcontractors).
Waivers on stamp duties and other fees for project agreements, financing contracts, equipment supply, installation, and any necessary contracts for project execution.
Exemption from general sales tax and similar taxes on both local and imported services, goods, and materials required for the project.
Right to benefit from future industrial tax and duty exemptions.
Exemption from withholding tax on imported services.
A grace period of up to 5 years before needing to pay rent on state-owned land leased for the project.
Exemption from taxes for non-resident financiers (on interest, fees, and other loan-related payments) for the duration of the project agreements.
According to the Cabinet, these incentives are expected to attract high-quality investments, generate direct and indirect jobs, localize green energy industries—such as green ammonia production—and strengthen Jordan’s status as a clean energy hub.
Moreover, these incentives are designed to make green hydrogen projects more financially viable, leading to higher returns, directly tied to the financial performance of the investing companies.
Engineer Yaacoub Marar, Director of the Energy Transition Directorate at the Ministry of Energy and Mineral Resources, explained that the incentives align with those previously applied to renewable energy projects (like wind and solar), reflecting that hydrogen projects share critical infrastructure needs—such as power networks, pipelines for hydrogen or ammonia, and water transport systems. He emphasized that these incentives position Jordan competitively against regional peers in the green hydrogen industry.
Marar added that the implementation comes under the Economic Modernization Vision, aiming to boost clean energy and green hydrogen investments. These incentives cover all components of green hydrogen and ammonia production. The project development stages include signing MOUs for feasibility studies, land-use agreements, and ultimately investment agreements with interested companies.
Energy expert Hashem Aql praised the sector’s attractiveness to both domestic and foreign investors, noting hydrogen’s status as the “energy of the future” and the importance of Jordan keeping pace through such facilitation and incentives that respond to global trends.
Engineer Mohammad Al-Ta'ani, Secretary-General of the Arab Renewable Energy Commission, described support for Jordan’s green hydrogen projects as a strategically significant step, which will boost solar energy production specifically for ammonia—a basic element for green hydrogen production.
Energy affairs expert Amer Al-Ta'ani highlighted that investing in green hydrogen is a promising opportunity to support the national economy through a valuable product that can ease living costs. Green hydrogen retains key advantages of traditional fuels—such as long range and fast refueling—but with near-zero carbon emissions, making it ideal for heavy-duty and long-distance applications.
He outlined key use cases:
Personal vehicles to reduce emissions
Urban buses
Heavy-duty trucks (as seen in global pilot programs)
Trains like Germany's Alstom Coradia iLint
Finally, the Cabinet decision on July 2, 2025, tasked the Ministries of Energy and Mineral Resources, Investment, and Finance with reviewing incentives for green hydrogen components both inside and outside Aqaba’s special zone—underscoring Jordan’s strategic intent to enhance its regional leadership in clean energy.
(Petra)
