Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) will acquire a 50% stake in Jubail-based Blue Hydrogen Industrial Gases Company (BHIG) upon definitive agreements with the parent company Air Products Qudra (APQ), according to a press release.
Aramco and Air Products Qudra will jointly develop lower-carbon hydrogen production business as per the transaction, which is subject to standard closing conditions. It will also include options for Aramco to offtake hydrogen and nitrogen.
As the agreement will help support the growth of Aramco’s New Energies portfolio, the two sides intend to supply hydrogen through a pipeline network in Saudi Arabia’s Eastern Province to serve the Saudi oil giant’s domestic and regional customers.
Aramco Executive Vice President of Strategy and Corporate Development, Ashraf Al Ghazzawi, said: “This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business.”
Once the equity acquisition transaction is completed, Aramco and APQ, a joint venture (JV) between Air Products and Qudra Energy, will equally own a 50% stake in BHIG.
Al Ghazzawi elaborated by saying: “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,” Aramco’s official concluded.
Air Products Qudra Chairman, Samir J. Serhan, said: “It is an honour to further extend Air Products Qudra’s strong partnership with Aramco, working to accelerate the hydrogen economy and driving the creation of the largest hydrogen network in the Middle East, which is expected to serve the refining, chemical, and petrochemical industries.”
Serhan added: “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.”
It is worth noting that BHIG focuses on producing lower-carbon hydrogen while capturing and storing CO2. Meanwhile, it is intended to commence commercial operations in coordination with Aramco’s carbon capture and storage (CCS) activities.
Recently, Aramco signed off definitive agreements to acquire a 10% shareholding in HORSE Powertrain Limited.
As for the financial performance, the oil giant generated net profits worth SAR 102.27 billion in the first quarter (Q1) of 2024 and revenues of SAR 402.04 billion.
