Hydrogen has a critical role to play in the global energy transition drive.
While many countries are looking to capture a proportion of the market
opportunity, Jordan is poised to become a leading exporter of this energy
bearer.
اضافة اعلان
The Kingdom has long been at the center of the global
energy supply market. It brings robust experience, a solid asset base, and
critical geo-political relations and partnerships that are vital to determining
the future of import and export dynamics.
According to a recent study by PWC, the MENA region
could produce about 200 million tonnes of green hydrogen by 2050, worth $300
billion per year, and will contribute 10–20 percent of the worldwide hydrogen
market.
It appears that many regions are now aspiring to
become the new hub for hydrogen. This market is steadily growing by supplying
blue and grey hydrogen. Given this context, demand will increase significantly,
reaching up to 580 million megatonnes by 2050.
The hydrogen markets will start scaling up as the
market foundations are in place. Jordan’s national hydrogen strategy should
focus on global energy insights, international experience, and natural
gas-sourced blue hydrogen (through the Fajr pipeline and NPC) as a step to
renewables-sourced green hydrogen.
The focus should be on blue hydrogen for export
markets via ammonia shipments. Supply hubs will emerge as the market starts
reaching maturity. Green hydrogen will begin making a solid preference and
entrance into niche markets.
While investment in renewable energy globally exceeded $365 billion last year, combined investment in energy storage, carbon
capture, and the hydrogen value chain was only $12 billion. That is not nearly
enough. The energy transition will need more than $250 billion in investment
over the next 30 years.
The 27th session of the Conference of the Parties to
the UN 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 securing accessible, affordable, and sustainable energy supplies.
Green hydrogen must be added to Jordan's 2020–2030 Energy Strategy, including ecosystem climate, transportation, and industrial policies, to act as a foundation for the private sector. It should help attract foreign investments and development cooperation.
It requires a collective effort based on
transparency, collaboration, and innovation; interested parties can deliver on
companies’ and countries decarbonization commitments, successfully deploying
green hydrogen to usher in a new chapter of renewable energy transformation.
Jordan came first in the Arab world in the
percentage of installed capacity of renewable energy sources and third in the
total energy produced, with 29 percent. The most challenging issue is the lack
of storage capacity, as the electrical capacity is approximately 6,500MW, while
consumption stands at 3,500MW.
Investing in green hydrogen could help the
government decrease its fossil fuel dependency, increase renewable energy
penetration, and boost the resilience of local energy systems. This green
strategy will support decarbonizing energy-intensive industries; this
particular electricity sector was the most significant contributor to CO2
emissions in Jordan in 2018. The process will fulfill the Kingdom’s commitment
to reduce GHG emissions by 14 percent by 2030.
Therefore, an integrated policy must reach market
penetration and overcome initial resistance. However, there are many challenges
that Jordan should address. These include the regulatory framework and other
difficulties associated with implementing hydrogen applications, such as
infrastructure, water scarcity, financing, and qualified human resources.
The primary driver will be a strong collaboration
between the private and public sectors and a clear national green hydrogen strategy.
Moreover, joint efforts with international partners, as well as subsidies and
incentives given by the government, would divide the risk. Therefore, issuing a
green bond signals transition efforts that reduce the risk of being bowled over
by the coming tidal wave of change.
Green hydrogen must be added to Jordan’s 2020–2030
Energy Strategy, including ecosystem climate, transportation, and industrial
policies, to act as a foundation for the private sector. It should help attract
foreign investments and development cooperation. All this enables the
commercialization of green hydrogen by creating a marketplace and reducing
costs.
A long-term contract with the private sector can be
essential in bringing security for investors and making the market more approachable.
Jordan must enhance the university R&D
activities to gain technological leadership and training programs and
sector-specific programs with international partnerships to prepare the
qualified workforce to deploy the hydrogen economy across its wide value chain.
Hamzeh S. Al-Alayani is a board member of a Jordanian public-sector
government investments management company and a regular commentator on regional
energy and industrial matters.
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