Aramco, one of the world’s leading integrated energy and chemicals companies, has signed definitive agreements to acquire an equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company, a wholly-owned subsidiary of Air Products Qudra. The transaction, subject to standard closing conditions, also includes options for Aramco to offtake hydrogen and nitrogen.
Aramco expects its investment in BHIG to bolster the development of a lower-carbon hydrogen network in the Kingdom of Saudi Arabia’s Eastern Province, serving both domestic and regional customers. This move aligns with Aramco’s ongoing efforts to develop a lower-carbon hydrogen business and expand its portfolio of alternative energy solutions. Upon completion of the transaction, Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each hold a 50 Percent stake in BHIG.
At the signing ceremony are APQ CEO Ebubekir Koyuncu, sitting left, and Aramco acting senior VP of new business development Mohanad M. Alamdar, sitting right. Standing, from left, are Aramco executive VP of strategy & corporate development Ashraf Al Ghazzawi, APQ chairman Dr. Samir Serhan, Air Products chairman, president & CEO Seifi Ghasemi, Aramco president & CEO Amin H. Nasser, APQ vice chairman Mohammed Abunayyan, and Aramco downstream president Mohammed Y. Al Qahtani
Ashraf Al Ghazzawi, Aramco executive VP of strategy & corporate development, remarked, “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, 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.”
Dr. Samir J. Serhan, Air Products Qudra chairman, stated, “It is an honour to further extend Air Products Qudra’s strong partnership with Aramco, working to accelerate the hydrogen economy and driving the creation of the largest hydrogen network in the Middle East, which is expected to serve the refining, chemical, and petrochemical industries. We look forward to providing our expertise in hydrogen and pipeline operations and supporting 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, is intended to commence commercial operations in coordination with Aramco’s CCS activities.
For more information visit www.aramco.com
