Aramco has signed definitive agreements to acquire a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary of Air Products Qudra (APQ). The transaction, subject to customary closing conditions, includes options for Aramco to draw hydrogen and nitrogen.
This acquisition expands Aramco’s portfolio in the blue hydrogen sector. BHIG, based in Jubail, is designed to produce hydrogen with CO2 capture infrastructure. Aramco and APQ, a joint venture between Air Products and Qudra Energy, will each own 50% of BHIG. Recently, Aramco has been stepping up its investments, as evidenced by the acquisition of a 10% stake in Horse.
Growth prospects
Ashraf Al Ghazzawi, Aramco’s Executive Vice President of Strategy and Business Development, said: “This investment underlines Aramco’s ambition to expand its energy portfolio. We believe in promising commercial opportunities for hydrogen.”
Prof. Dr. Samir J. Serhan, President of Air Products Qudra, added: “We look forward to providing our expertise in hydrogen and pipeline operations, and supporting Aramco’s need for a reliable supply of hydrogen.”
Impact on the energy market
This acquisition marks an important step for Aramco in the development of blue hydrogen, with significant implications for the region’s energy market. BHIG is scheduled to begin commercial operations in coordination with Aramco’s carbon capture and storage activities.
This agreement represents a strategic step forward for Aramco, enabling the company to strengthen its position in the alternative energies sector and meet the growing hydrogen needs of Saudi Arabia and the region.
