Aramco Acquires Stake in Blue Hydrogen Company, Advancing Decarbonisation Efforts
Key Ideas
  • Global law firm White & Case LLP advised Aramco on acquiring a 50% interest in Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary of Air Products Qudra.
  • BHIG is developing a large low-carbon hydrogen production plant in Jubail, Saudi Arabia, aimed at decarbonising refinery and petrochemical operations in the region.
  • The acquisition is part of Aramco's strategy to expand its new energies portfolio and grow its low-carbon hydrogen business globally.
  • The deal includes options for Aramco to offtake hydrogen and nitrogen, positioning it to enhance its presence in the clean energy market.
Global law firm White & Case LLP has played a key role in advising Aramco on its recent acquisition of a 50 percent stake in Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary of Air Products Qudra. BHIG is currently working on establishing a significant low-carbon hydrogen production facility in the Jubail Industrial City in Saudi Arabia. This plant, once operational, is expected to be one of the largest of its kind in the Middle East and will contribute to the decarbonisation efforts in the region by targeting existing refinery and petrochemical operations. The transaction is part of Aramco's broader strategy to expand its new energies portfolio and strengthen its foothold in the low-carbon hydrogen sector, not only within Saudi Arabia but also on an international scale. With options for hydrogen and nitrogen offtake included in the deal, Aramco is well-positioned to capitalize on the growing demand for clean energy solutions. The White & Case team involved in this acquisition was led by partners from various regions, emphasizing the global nature of the transaction. The deal signals a significant step towards advancing decarbonisation efforts and highlights the increasing focus on sustainability and clean energy within the energy sector. Overall, the partnership between Aramco, BHIG, and Air Products Qudra sets a positive precedent for the development of cleaner industrial practices and the expansion of the clean energy market.
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