Aramco and APQ to Develop Lower-Carbon Hydrogen Network in Saudi Arabia
Key Ideas
  • Aramco signed agreements to acquire an equity interest in BHIG, aiming to develop a lower-carbon hydrogen network in Saudi Arabia's Eastern Province.
  • The investment in BHIG will support the growth of Aramco's New Energies portfolio, focusing on alternative energy solutions and hydrogen production.
  • BHIG, a subsidiary of Air Products Qudra, is designed to produce lower-carbon hydrogen while capturing and storing CO2, aligning with Aramco's CCS activities.
  • The partnership between Aramco and APQ aims to drive the creation of the largest hydrogen network in the Middle East, catering to various industries' hydrogen needs.
Aramco, a prominent energy and chemicals company, has reached agreements to acquire a stake in the Blue Hydrogen Industrial Gases Company (BHIG) in Jubail, Saudi Arabia. This move is part of Aramco's strategy to expand its new energies portfolio and enhance its focus on lower-carbon hydrogen production. The investment in BHIG, a subsidiary of Air Products Qudra (APQ), will pave the way for the development of a lower-carbon hydrogen network in the Kingdom's Eastern Province, serving both local and regional markets. This initiative aligns with Aramco's commitment to exploring alternative energy solutions and promoting sustainability. Through this partnership, Aramco and APQ plan to establish a robust marketplace for lower-carbon hydrogen, leveraging expertise in carbon capture and storage (CCS) and hydrogen technologies. BHIG, which is set to produce lower-carbon hydrogen with CO2 capture capabilities, is expected to align its commercial operations with Aramco's CCS initiatives. The collaboration aims to provide a reliable supply of lower-carbon hydrogen to meet the needs of industries such as refining, chemicals, and petrochemicals. The executives from both companies, including Ashraf Al Ghazzawi from Aramco and Dr. Samir J. Serhan from APQ, expressed enthusiasm for the partnership and highlighted the potential commercial opportunities in the hydrogen sector. The joint venture's goal is to drive the growth of the hydrogen economy in the region and establish the largest hydrogen network in the Middle East. By combining their strengths in hydrogen production, pipeline operations, and energy technologies, Aramco and APQ aim to contribute to the transition towards a more sustainable energy system. Overall, the agreement signifies a significant step towards fostering a greener energy landscape in Saudi Arabia.
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