Energy and chemicals company Aramco has acquired a 50% stake in Air Products Qudra’s (APQ’s) blue hydrogen subsidiary in Saudi Arabia, Blue Hydrogen Industrial Gases Company (BHIG).
BHIG has plans to produce blue hydrogen, produced with carbon capture, at Aramco’s carbon capture and storage (CCS) sites in the Jubail Industrial City area, offering hydrogen at scale.
Ashraf Al Ghazzawi, Aramco Executive Vice-President of Strategy and Corporate Development, said the network could help the venture to capitalise on emerging opportunities in Saudi and globally.
Reportedly the agreement also includes an option for Aramco to offtake nitrogen and hydrogen from BHIG.
The confirmation follows a signed definite agreement for the purchase in July 2024.
Ahmed Hababou, Chairman of Air Products Qudra, said the venture highlighted Aramco and Air Products Qudra’s effort to develop a hydrogen network in Saudi’s Eastern Province for the refining, chemical, and petrochemical industries.
It will also support the country’s goal to become one of the largest exporters of hydrogen. It is home to the world’s largest green hydrogen project, NEOM.
Saudi Arabia today consumes 2.5 million tonnes of hydrogen across refineries, steel, ammonia, and methanol facilities. It’s reportedly eyeing four million tonnes of low-carbon hydrogen production annually by 2035.
