Aramco Expands Hydrogen Business in Saudi Arabia
Key Ideas
- Aramco acquires a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG) to strengthen its hydrogen business in Saudi Arabia's Eastern Province.
- The investment aims to develop a lower-carbon hydrogen network, serving both domestic and regional customers in industries like refining, chemical, and petrochemical.
- Aramco's partnership with APQ signifies a commitment to expanding new energies like blue hydrogen, carbon capture and storage (CCS), renewables, and synthetic fuels to support the energy transition.
Aramco has boosted its hydrogen business by acquiring a 50% stake in the Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary of Air Products Qudra (APQ) in Jubail. This move is part of Aramco's strategy to develop a lower-carbon hydrogen network in Saudi Arabia's Eastern Province, aiming to cater to both local and regional customers. The agreement will also provide Aramco with options to offtake hydrogen and nitrogen, enhancing their capabilities in the hydrogen sector. Through this investment, Aramco plans to leverage its expertise in carbon capture and storage (CCS) and hydrogen to establish a marketplace for lower-carbon hydrogen, contributing to a more sustainable energy system. The partnership with APQ reflects a joint effort to drive the hydrogen economy in the Middle East and establish a significant hydrogen network to support various industries. This collaboration highlights the focus on alternative energies and technologies like blue hydrogen, ammonia, renewables, and synthetic fuels, all crucial elements in reducing emissions and promoting the energy transition.