Jordan is rich in natural resources, particularly phosphate
and raw potash, which provide a significant foundation for investment in the
fertilizer sector. This sector plays a crucial role in enhancing food security,
driving economic growth, and boosting export values. In recent years,
Jordan's fertilizer industry has experienced impressive growth, contributing
substantially to national exports.
اضافة اعلان
The importance of ammonia
Ammonia, a compound composed of one nitrogen atom and three
hydrogen atoms (NH3), is a vital input in fertilizer production, with a global
demand of 183 million tons annually, primarily consumed by the
fertilizer industry.
In Jordan, the local demand for ammonia stands at
approximately 450,000 tons per year. Localizing ammonia production not only
secures a critical resource for
fertilizer manufacturing but also opens doors
to various high-value chemical industries, including pharmaceuticals, textiles,
explosives, plastics, and more.
Balancing growth and environmental responsibility
The challenge lies in increasing fertilizer production to
meet global demand, particularly amidst supply disruptions caused by events
like the Ukrainian conflict. However, the fertilizer industry is also known for
its significant environmental impact.
According to GlobalData’s
Hydrogen in Power, the current
carbon intensity of ammonia production is an obstacle, emitting 1.8 tonnes of
carbon dioxide (TCO2) for each tonne of the chemical produced. Lowering this
sector’s emissions can be addressed by investing in low-carbon ammonia
technology, such as blue ammonia with
Carbon Capture and Storage technology (CCS), or green ammonia powered by renewable sources. The International
Renewable Energy Agency’s (IRENA) scenario estimates that 83 percent of ammonia
will be produced using renewable hydrogen by 2050.
There is also an increasing number of incentives to
alleviate these costs, from regulatory support to subsidies and grants, carbon
taxes, and research & development funding. For example, the EU has several
regulations in place to support the development of a low-carbon economy, such
as the
Emissions Trading System (ETS scheme).
Shifting to renewable energy
Deploying renewable hydrogen technologies at scale is
crucial. To achieve this, significant investments in renewable energy are
essential to address the currently high electricity costs, which can reach up
to 55 kWh per 1 kilogram of hydrogen. Furthermore, a sustainable strategy in
the mining and water industries is necessary to
produce green hydrogen and ammonia. This approach ensures competitiveness and sustainability throughout
the entire value chain.
Demand for hydrogen and its derivatives is on the rise.
Increasingly a staple of mainstream energy conversations, hydrogen carries with
it the potential to decarbonize hard to abate sectors. Wood Mackenzie has
expected the wave of project announcements and policy expansion continues to
build, as does the investable opportunity up to US$2 trillion by 2050.
The role of green hydrogen and ammonia
Decarbonizing ammonia production is an environmental press
toward achieving net-zero emissions by 2050, as the world seeks cleaner and
more secure energy sources, green hydrogen and ammonia emerge as pivotal
players. Green hydrogen production can reduce the environmental footprint of
ammonia production. Global demand for green hydrogen is expected to grow
substantially, creating opportunities for
Jordan to become a major supplier inthis burgeoning market.
Ammonia's versatility
Ammonia is a versatile energy carrier and can be used for
hydrogen transportation. With over 120 global ports equipped to receive
ammonia, it holds promise as a fuel for the maritime shipping industry,
contributing to a reduction in global carbon dioxide emissions.
Meeting the minerals demand
The energy transition requires vast quantities of minerals
and rare earth elements, especially for electrolyzers and fuel cells that
convert electricity into hydrogen. This demand opens avenues for the mining
industry, creating a robust economic ecosystem that enhances efficiency and
self-reliance while managing risks optimally.
Jordan's strategic advantage
Jordan's commitment to renewable energy, with 27 percent of
electricity generated from renewable sources in 2022 and plans to reach 50
percent by 2030, positions it strategically for green hydrogen production. The
Red Sea's water can serve as a source for green hydrogen production, and the
Aqaba port can facilitate export and transportation, making Jordan an
attractive hub for green ammonia distribution.
Localizing ammonia production in Jordan is not merely an
economic endeavor but a strategic move towards sustainability and global
relevance. By harnessing its natural resources, investing in renewable energy,
and capitalizing on the green hydrogen and ammonia markets, Jordan can unlock
its full economic potential, setting a course for a brighter, more sustainable
future.
Hamzeh S. Al-Alayani is a Jordanian public-sector government
investments management company board member and a regular regional energy and
industrial commentator. Hamzeh holds an MBA from the University of Aberdeen,
UK, and a BSc in Mechanical Engineering.
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