Aramco and Air Products Qudra's Joint Venture: Pioneering Lower-Carbon Hydrogen in Saudi Arabia
Key Ideas
- Aramco and Air Products Qudra have agreed to jointly acquire Blue Hydrogen Industrial Gases Company (BHIG) in Jubail, aiming to develop a lower-carbon hydrogen network in Saudi Arabia's Eastern Province.
- The partnership seeks to support Aramco's expansion in new energies and lower-carbon hydrogen, utilizing expertise in carbon capture, storage, and hydrogen technologies.
- BHIG, designed for lower-carbon hydrogen production and CO2 capture, will align its operations with Aramco's carbon capture activities, bolstering the region's hydrogen economy.
- The collaboration between Aramco and APQ is set to establish the largest hydrogen network in the Middle East, catering to industries like refining, chemicals, and petrochemicals for reliable lower-carbon hydrogen supply.
Aramco and Air Products Qudra have announced a strategic partnership to enhance the development of lower-carbon hydrogen in Saudi Arabia. Through the acquisition of Blue Hydrogen Industrial Gases Company (BHIG) in Jubail, both companies plan to establish a lower-carbon hydrogen network in the Kingdom's Eastern Province. This initiative aims to serve domestic and regional customers, supporting Aramco's commitment to expanding its portfolio of alternative energy solutions.
The agreement will see Aramco and APQ each owning a 50% stake in BHIG. BHIG's operational focus will be on producing lower-carbon hydrogen while simultaneously capturing and storing CO2, aligning its activities with Aramco's carbon capture and storage (CCS) endeavors. The collaboration intends to leverage Aramco's expertise in CCS and hydrogen technologies to pave the way for a vibrant marketplace for lower-carbon hydrogen.
Ashraf Al Ghazzawi, Aramco's Executive Vice President of Strategy & Corporate Development, expressed enthusiasm for the partnership, emphasizing the commercial potential of lower-emission hydrogen. Dr. Samir J. Serhan, Chairman of Air Products Qudra, highlighted the joint efforts to accelerate the hydrogen economy and create a robust hydrogen network that will cater to various industries.
The venture aims to capitalize on Air Products Qudra's proficiency in hydrogen and pipeline operations, aligning with Aramco's objectives to secure a dependable supply of lower-carbon hydrogen for regional requirements. BHIG is set to begin its commercial operations in tandem with Aramco's CCS activities, underscoring the commitment to sustainable hydrogen production.
Overall, the partnership signifies a significant step towards advancing the hydrogen economy in the Middle East, particularly in Saudi Arabia. By combining resources and expertise, Aramco and Air Products Qudra aim to pioneer the development of a large-scale hydrogen network that will drive the transition towards cleaner energy solutions in the region.
Topics
Blue Hydrogen
Sustainability
Investment
Partnership
Carbon Capture
Energy Solutions
Commercial Operations
Pipeline Operations
Technological Expertise
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