Saudi Aramco Invests in Blue Hydrogen Industrial Gases Company for Lower-Carbon Hydrogen Network Expansion
Key Ideas
- Saudi Aramco acquires a 50% stake in Blue Hydrogen Industrial Gases Company, a subsidiary of Air Products Qudra, to develop a lower-carbon hydrogen network in the Eastern Province.
- The transaction includes options for Aramco to offtake hydrogen and nitrogen, aligning with its strategy to expand its portfolio of alternative energy solutions.
- Blue Hydrogen Industrial Gases Company is designed to produce lower-carbon hydrogen while capturing and storing carbon dioxide, supporting Aramco's carbon capture and storage activities.
- The investment is expected to benefit both domestic and regional customers by offering sustainable energy solutions and promoting environmental sustainability.
Saudi Aramco has entered into agreements to acquire a 50% equity interest in Blue Hydrogen Industrial Gases Company (BHIG) located in Jubail, a subsidiary of Air Products Qudra. The deal, subject to closing conditions, also grants Aramco options to offtake hydrogen and nitrogen from BHIG. Following the completion of the transaction, both Aramco and Air Products Qudra are set to possess a 50% stake in BHIG. This move aligns with Aramco's commitment to developing a lower-carbon hydrogen business and diversifying its energy solutions. BHIG focuses on producing lower-carbon hydrogen while capturing and storing carbon dioxide, a process that will complement Aramco's carbon capture and storage initiatives. The investment aims to establish a lower-carbon hydrogen network in the Eastern Province of Saudi Arabia, serving the local and regional markets with sustainable energy alternatives. The joint venture is poised to contribute towards promoting environmental sustainability and advancing the use of cleaner energy sources in the region.