Aramco's Investment in BHIG to Boost Hydrogen Network in Saudi Arabia
Key Ideas
- Saudi Aramco acquires 50% stake in BHIG, a low-carbon hydrogen production plant in Jubail, enhancing the hydrogen network in Saudi Arabia's Eastern Province.
- The investment aims to capitalize on reducing carbon emissions, supporting growth, and diversifying Aramco's energy portfolio.
- Aramco's Jubail hub plans to capture and store 9 million metric tons of CO2 annually by 2027, aligning with green initiatives.
- Deloitte predicts a significant growth in the clean hydrogen market from $160 billion in 2022 to $640 billion by 2030, signifying potential returns on the investment.
Saudi Aramco has acquired a 50% stake in the Blue Hydrogen Industrial Gases Company (BHIG) through a unit of Air Products Qudra in Jubail, Saudi Arabia. This investment is set to enable BHIG to produce blue hydrogen for Jubail Industrial City. Blue hydrogen is derived from natural gas, where hydrogen is separated from carbon dioxide, which is then captured and stored. The move reflects Aramco's strategic initiative to develop a hydrogen network in the Eastern Province of Saudi Arabia. Additionally, Aramco's aim to capture and store 9 million metric tons of CO2 annually by 2027 aligns with global sustainability goals. The investment also signifies Aramco's focus on reducing carbon emissions, promoting growth, and diversifying its energy mix. Industry insights from Deloitte forecast a remarkable expansion in the clean hydrogen market, projecting an increase from $160 billion in 2022 to $640 billion by 2030, indicating lucrative prospects for Aramco's investment in BHIG.