Energy giant Aramco said it 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 remains subject to standard closing conditions, will also include options for Aramcoto offtake hydrogen and nitrogen.
“This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business,” said Ashraf Al Ghazzawi, Aramco Excecutive Vice President of Strategy & Corporate Development.
“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, with the ambition to support the establishment of a vibrant marketplace for lower-carbon hydrogen — helping lay the foundations of a future energy system,” added Al Ghazzawi.
Aramco expects its investment in BHIG will contribute to the development of a lower-carbon hydrogen network in the Kingdom of Saudi Arabia’s Eastern Province, serving both domestic and regional customers.
Upon completion of the transaction, Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.
