Saudi Aramco, a global integrated energy and chemicals company, signed on Tuesday 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, which is subject to standard closing conditions, will also include options for Aramco to offtake hydrogen and nitrogen.
As part of its efforts to develop low-carbon hydrogen businesses and expand its alternative energy solutions portfolio, Aramco expects its investment in BHIG will contribute to the development of a lower-carbon hydrogen network in 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.
Aramco executive vice president of strategy & corporate development Ashraf Al Ghazzawi said the investment highlights Saudi Aramco's ambition to expand its new energy portfolio and grow its low-carbon hydrogen business.
He expressed his pleasure in moving forward with APQ on this path, noting that there are promising commercial opportunities for low-emission hydrogen, and that the company aims to leverage its growing capabilities in carbon capture and storage (CCS) and its technical expertise in hydrogen to support the creation of a thriving low-carbon hydrogen market, which could help lay the foundation for the energy system of the future.
APQ chairman Dr. Samir J. Serhan stressed the company's continued expansion of its longstanding partnership with Saudi Aramco and its commitment to accelerating the growth of the hydrogen economy.
He underlined the efforts of the two companies to establish the largest hydrogen network in the Middle East, which is expected to serve the refining, chemical, and petrochemical industries, and expressed his eagerness to contribute the company's expertise in hydrogen business and pipelines and to support Saudi Aramco's efforts to secure reliable supplies of low-carbon hydrogen to meet local and regional needs.
BHIG, which is designed to produce lower-carbon hydrogen while capturing and storing carbon dioxide (CO2), intends to commence commercial operations in coordination with Aramco's CCS activities.
