Aramco to acquire stake in hydrogen industrial gases company

 

Aramco has signed definitive agreements to acquire an equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG).

The transaction, which is subject to standard closing conditions, will also include options for Aramco to offtake hydrogen and nitrogen.

Building on its efforts to develop a lower-carbon hydrogen business and expand its portfolio of alternative energy solutions, Aramco expects its investment in BHIG will contribute to the development of a lower-carbon hydrogen network in Saudi Arabia’s Eastern Province, serving both domestic and regional customers.

Ashraf Al Ghazzawi, Aramco executive vice-president of strategy & corporate development, said: “This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business.

“We are delighted to partner with APQ on this journey and believe there are promising commercial opportunities for hydrogen with lower emissions. We intend to leverage our growing capabilities in carbon capture and storage (CCS), as well as our technical expertise in hydrogen, with the ambition to support the establishment of a vibrant marketplace for lower-carbon hydrogen — helping lay the foundations of a future energy system.”

Dr Samir J. Serhan, Air Products Qudra chairman, said: “We look forward to providing our expertise in hydrogen and pipeline operations and supporting Aramco’s need for a reliable supply of lower-carbon hydrogen for domestic and regional requirements.”

BHIG, which is designed to produce lower-carbon hydrogen while capturing and storing CO2, is intended to commence commercial operations in coordination with Aramco’s CCS activities.