Aramco and Air Products Qudra Partner to Advance Blue Hydrogen Production in Saudi Arabia
Key Ideas
- Aramco has acquired a 50% equity stake in Blue Hydrogen Industrial Gases Company (BHIG) in Jubail, focusing on producing blue hydrogen from natural gas with carbon capture and storage.
- The partnership aims to establish a hydrogen network in Saudi Arabia's Eastern Province to reduce carbon emissions, support growth, and diversify the energy portfolio.
- The collaboration between Aramco and Air Products Qudra demonstrates a commitment to advancing lower-carbon intensity energy solutions in alignment with Saudi Arabia's Vision 2030.
- BHIG is set to commence commercial operations to produce blue hydrogen, contributing to the industrial growth of the region and catering to sectors like refining, chemical, and petrochemical industries.
Aramco and Air Products Qudra have finalized an agreement for Aramco to acquire a 50% interest in the Blue Hydrogen Industrial Gases Company (BHIG) based in Jubail, Saudi Arabia. BHIG's focus is on producing hydrogen, particularly lower-carbon blue hydrogen derived from natural gas, utilizing carbon capture and storage (CCS) technology. The collaboration aims to provide the Jubail Industrial City area with a sustainable hydrogen supply at scale.
The strategic investment by Aramco in BHIG is expected to play a pivotal role in establishing a hydrogen network within the Kingdom's Eastern Province. By integrating BHIG's operations with Aramco's CCS hub in Jubail, the partnership seeks to capitalize on emerging opportunities both locally and globally to address carbon emissions, foster economic growth, and diversify the energy mix.
Key figures from both companies, including Ashraf Al Ghazzawi and Ahmed Hababou, have emphasized the significance of this joint venture in advancing Saudi Arabia's hydrogen infrastructure. They view the collaboration as a crucial step towards achieving the objectives outlined in Saudi Arabia's Vision 2030, focusing on sustainable energy solutions and reducing carbon intensity.
The impending commercial operations of BHIG mark a significant milestone in the journey towards establishing a robust blue hydrogen production facility in the region. The project aligns with the broader industrial landscape, aiming to cater to the needs of key sectors like refining, chemical, and petrochemical industries. This partnership underscores a shared commitment to environmental stewardship and technological innovation in the energy sector.