Aramco expands hydrogen business

Aramco is strengthening its hydrogen business by acquiring an equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG), a wholly-owned subsidiary of Air Products Qudra (APQ)

On 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. The deal will also include options for Aramco to offtake hydrogen and nitrogen.

Through its investment in BHIG, Aramco is looking to develop a lower-carbon hydrogen network in Saudi Arabia’s Eastern Province, serving both domestic and regional customers.

Expanding new energies

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, 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, said, “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.”

Aramco is developing and scaling alternative energies and technologies that are expected to be critical to lowering emissions and supporting the energy transition, including carbon capture and storage (CCS), blue hydrogen, blue ammonia, renewables, and synthetic fuels.