Jordan's Energy, Minerals Sector: 25-Year Strategic Evolution

Amman, Feb. 12 (Petra) — Over the past quarter-century, Jordan has embarked on a strategic overhaul of its energy and minerals sectors, guided by royal directives and a vision for economic modernization.

This period has seen Jordan navigate through its resource limitations to emerge as a leader in renewable energy in the region, make significant advances in the natural gas and oil shale sectors, and unlock the potential of its vast mineral resources.

Renewable Energy: A Pillar of Sustainable Growth

Jordan’s renewable energy sector has witnessed exponential growth, transforming the Kingdom into a regional beacon for sustainable energy development. With an initial reliance on energy imports accounting for 94% of its needs in 2000, Jordan has drastically reduced this figure to 83% in 2022, demonstrating a significant shift towards local energy sources.

– Statistical Achievements: Jordan’s leadership in renewable energy is marked by its top-ranking position in installed capacity of renewable energy sources, excluding hydropower, as per the Arab Future Energy Index (AFEX) 2022 report.

Furthermore, Jordan stood first in per capita share of renewable energy capacity among Arab countries, according to the Regional Center for Renewable Energy and Energy Efficiency (RCREEE) report in 2020, and achieved a notable rank of sixth globally for investment in renewable energy as reported by Climate Scope 2019.

– Strategic Initiatives: The energy sector strategy (2020-2030), titled “Self-Reliance,” targets increasing local energy sources to 20% of the total energy mix. This strategy focuses on diversifying energy sources, reducing energy costs, and establishing Jordan as a regional energy hub.

Natural Gas and Oil Shale: Diversifying Energy Resources

The development of natural gas and oil shale resources has been pivotal in Jordan’s energy diversification efforts, aiming to enhance energy security and reduce dependency on imports.

– Natural Gas Developments: The Arab Gas Pipeline, established in collaboration with Egypt since 2003, and the liquefied natural gas (LNG) project at the Aqaba port initiated in 2015, signify Jordan’s efforts to secure alternative energy supplies. The Risha gas field development aims to increase production from 27 million cubic feet per day in 2000 to 200 million cubic feet per day by 2030.

– Oil Shale Ventures: Jordan’s oil shale sector has gained momentum with the operation of a power generation station utilizing direct burning of oil shale, contributing 1% to the total energy mix and 5% to the electrical energy mix. The development of oil shale extraction and power generation represents a strategic move to exploit local resources for energy production.

Mining Sector: Capitalizing on Mineral Wealth

Jordan’s rich mineral resources, including phosphate, potash, and strategic minerals, offer significant economic prospects. The sector’s development is aligned with global demand trends, especially for critical minerals essential in the green and digital economies.

– Economic Contributions: The mining sector, particularly phosphate and potash industries, has played a crucial role in Jordan’s economy. Jordan ranks 7th and 12th globally in phosphate and potash reserves, respectively, contributing significantly to national exports. The sector’s strategy aims to attract investment, stimulate economic growth, and create job opportunities.

Green Hydrogen: Future Energy Prospects

Jordan’s exploration of green hydrogen as an alternative energy source positions the Kingdom at the forefront of global energy innovation. The national green hydrogen strategy, developed in collaboration with international partners, outlines Jordan’s commitment to contributing to global efforts in combating climate change and advancing towards a sustainable energy future.

– Strategic Partnerships: Memorandums of understanding with global entities underscore Jordan’s proactive approach to developing green hydrogen projects. These partnerships aim to establish Jordan as a regional center for green hydrogen production, leveraging its renewable energy capabilities.

Regional Connectivity: Strengthening Energy Links

Jordan’s strategic location offers unique advantages for regional energy connectivity, enhancing its role as an energy hub in the Middle East.

– Interconnection Projects: The electrical interconnection projects with neighboring countries, such as Egypt, Iraq, and Saudi Arabia, aim to increase energy exchange capacity and foster regional cooperation. These initiatives are pivotal in enhancing Jordan’s energy security and contributing to regional energy stability.

Navigating Towards a Sustainable Future

Jordan’s strategic evolution in the energy and minerals sectors over the past 25 years represents a comprehensive approach to achieving energy independence, economic growth, and environmental sustainability

Through significant investments in renewable energy, diversification of energy sources with natural gas and oil shale, and capitalizing on its mineral wealth, Jordan is paving the way for a sustainable and prosperous future. The Kingdom’s forward-looking initiatives, particularly in green hydrogen and regional connectivity, further underscore its commitment to innovation, regional cooperation, and sustainable development.

//Petra// AA

12/02/2024 10:13:45

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