Jordan's King Abdullah II has ratified the 2026 Gas Law, introducing legislation that regulates the green hydrogen sector, its related infrastructure, and permitting procedures. The adoption of the new law aims to accelerate market development within the country. This full legislation, ratified by King Abdullah II, is specifically designed to streamline processes for green hydrogen projects, laying a key foundation for the industry's expansion. The government intends for these measures to foster significant growth in the nascent industry, positioning Jordan as a key player in the regional green energy landscape. The new regulatory framework is expected to attract both domestic and international investment, propelling the development of sustainable energy solutions across the Kingdom.
Regulatory Framework Details
The new legislation provides a clear and precise definition of green hydrogen, specifying it as hydrogen produced through water electrolysis powered exclusively by renewable energy sources. This definition shows Jordan's commitment to environmentally sustainable production methods. A key element of this framework is the introduction of a "Certificate of Origin," which will serve to verify that all stages of hydrogen production, water pumping, and product transport adhere to approved sustainability standards. This certificate aims to ensure the integrity and environmental credentials of Jordan's green hydrogen products in global markets. The framework extends its scope to cover hydrogen derivatives, including essential industrial compounds such as ammonia and methanol, thereby encompassing a broader segment of the green chemicals value chain.
Oversight of the entire green hydrogen sector will fall under the purview of the Energy and Minerals Regulatory Commission. This dedicated body will be solely responsible for issuing all necessary licenses for hydrogen-related activities, ensuring a centralized and consistent regulatory approach. The law explicitly stipulates that the construction or operation of facilities dedicated to green hydrogen production, as well as the import, export, wholesale, or retail trade of hydrogen products, are strictly prohibited without official approval from the Commission. This aims to centralize regulatory control over the nascent industry, ensuring compliance and fostering responsible development from the outset. The Commission's role is critical in establishing a stable and predictable environment for investors and operators within the sector.
Enforcement and Transparency Measures
The new regulatory framework introduces a strong system of penalties for breaches of licensing provisions. These penalties are designed to ensure compliance and include warnings, financial penalties, temporary suspensions of operations, and ultimately, the revocation of permits for serious or repeated infringements. This tiered approach provides flexibility while maintaining strict oversight. For cross-border pipeline systems that establish new interconnection points with neighboring countries, the law requires explicit approval from the Cabinet, noting the strategic importance of such infrastructure and ensuring national interests are protected. To improve transparency within the sector, the Energy and Minerals Regulatory Commission will be mandated to publish an annual list detailing all license applications received and their corresponding decisions. This public record will provide stakeholders with clear insights into the regulatory process and market activity. The legislation also establishes specific penalties for actions such as obstructing inspections carried out by regulatory bodies, providing false information during application or operational phases, operating without the necessary licenses, or engaging in activities that endanger public safety, health, or the environment. These measures collectively aim to foster a secure, transparent, and compliant green hydrogen industry in Jordan.
Industry Development and Future Outlook
A significant indicator of the new legislation's potential impact is the recent government approval for a large green ammonia and hydrogen project in the Kingdom. This project is a joint venture between Poland's Hynfra and the UAE-based chemical company Fidelity Group. This development shows the country's proactive efforts to attract foreign investment and expertise into its emerging green hydrogen sector, demonstrating confidence in Jordan's regulatory environment and resource potential. The project is expected to contribute substantially to the nation's capacity for producing sustainable fuels and chemicals, aligning with global efforts to decarbonize industrial processes. Jordan's new legislation, ratified by King Abdullah II, is specifically designed to facilitate such large-scale initiatives by providing a clear regulatory framework and streamlined permitting processes, thereby reducing investment hurdles. The approval of this joint venture aligns perfectly with the government's strategic objectives to position the country as a regional hub for green energy production and export. This project represents an early and tangible outcome of the legislative changes, demonstrating their intended impact on industry development and future growth in the green hydrogen economy, paving the way for further investments and innovation.
