Aramco Acquires 50% Stake in Air Products' Blue Hydrogen Industrial Gases Company in Joint Venture
Key Ideas
- Aramco has agreed to acquire a 50% stake in Air Products' Blue Hydrogen Industrial Gases Company (BHIG) based in Jubail.
- After the transaction, Aramco and Air Products Qudra will each own 50% of BHIG, aiming to strengthen the hydrogen economy in the Middle East.
- The deal includes provisions for Aramco to secure hydrogen and nitrogen offtake options, expanding their lower-carbon hydrogen business.
- Both companies expressed commitment to creating a vibrant marketplace for lower-carbon hydrogen and laying the foundations of a future energy system.
In a significant move, Aramco has agreed to acquire a 50% stake in Air Products' Blue Hydrogen Industrial Gases Company (BHIG), which is located in Jubail. BHIG, a subsidiary of Air Products Qudra, will see Aramco and APQ as joint owners post-transaction. The deal is set to enhance the hydrogen economy in the Middle East, catering to industries like refining, chemicals, and petrochemicals. Additionally, the agreement includes provisions for Aramco to secure hydrogen and nitrogen offtake options, marking an expansion in their lower-carbon hydrogen business. Both entities have pledged to leverage capabilities in carbon capture and storage (CCS) and technical expertise in hydrogen to build a lively marketplace for lower-carbon hydrogen, contributing to future energy systems. This joint venture signifies a strategic partnership aimed at driving the energy transition and advancing the use of hydrogen in the region.