Aramco, a leading global energy and chemicals company, has signed definitive agreements to acquire an equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG), a wholly-owned subsidiary of Air Products Qudra (APQ). The transaction, pending standard closing conditions, includes options for Aramco to offtake hydrogen and nitrogen.
Aramco aims to develop a lower-carbon hydrogen business and expand its alternative energy portfolio. The investment in BHIG is expected to support the development of a lower-carbon hydrogen network in Saudi Arabia’s Eastern Province, serving both domestic and regional customers. After the transaction, Aramco and APQ, a joint venture between Air Products and Qudra Energy, will each own a 50% stake in BHIG.
Ashraf Al Ghazzawi, Aramco Executive Vice President of Strategy & Corporate Development, said, “This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business. We are delighted to partner with APQ on this journey and believe there are promising commercial opportunities for hydrogen with lower emissions. We intend to leverage our growing capabilities in carbon capture and storage (CCS), as well as our technical expertise in hydrogen, to support the establishment of a vibrant marketplace for lower-carbon hydrogen.”
Dr. Samir J. Serhan, Air Products Qudra Chairman, added, “It is an honor to further extend Air Products Qudra’s strong partnership with Aramco. We look forward to accelerating the hydrogen economy and creating the largest hydrogen network in the Middle East to serve the refining, chemical, and petrochemical industries. Our expertise in hydrogen and pipeline operations will support Aramco’s need for a reliable supply of lower-carbon hydrogen for domestic and regional requirements.”
BHIG, designed to produce lower-carbon hydrogen while capturing and storing CO2, will commence commercial operations in coordination with Aramco’s CCS activities.
