Aramco Expands Blue Hydrogen Portfolio with Acquisition of BHIG Stake
Key Ideas
- Aramco acquires a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), expanding its blue hydrogen portfolio.
- The acquisition includes options for Aramco to draw hydrogen and nitrogen, aligning with the company's ambitions in the energy sector.
- This strategic move aims to meet the growing hydrogen needs of Saudi Arabia and the region, enhancing Aramco's position in the alternative energies market.
Aramco has finalized agreements to acquire a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary of Air Products Qudra (APQ), based in Jubail, Saudi Arabia. The transaction includes provisions for Aramco to access hydrogen and nitrogen. Aramco's expansion into the blue hydrogen sector demonstrates its commitment to diversifying its energy portfolio. Ashraf Al Ghazzawi, Aramco's EVP of Strategy and Business Development, expressed the company's confidence in the commercial potential of hydrogen. The partnership with APQ aims to leverage expertise in hydrogen production and pipeline operations. This strategic move positions Aramco to play a significant role in the region's energy market, with BHIG set to commence operations aligned with Aramco's carbon capture initiatives. The acquisition signifies Aramco's proactive approach to meeting the increasing demand for hydrogen in Saudi Arabia and beyond, bolstering its presence in the alternative energies sector.