Saudi Aramco has agreed to acquire an equity interest in the Jubail-based Blue Hydrogen Industrial Gases Co. (BHIG), a wholly owned subsidiary of Air Products Qudra (APQ). The deal also includes options for Aramco to offtake hydrogen and nitrogen, the operator said in a release July 16.
Aramco expects its investment in BHIG will contribute to the development of a lower-carbon hydrogen network in the Kingdom of Saudi Arabia's Eastern Province, serving both domestic and regional customers. Upon completion of the deal, which is subject to closing conditions, Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.
Ashraf Al Ghazzawi, Aramco executive vice-president of strategy and corporate development, said “there are promising commercial opportunities for hydrogen with lower emissions,” and that Aramco intends to leverage its capabilities in carbon capture and storage (CCS) and technical expertise in hydrogen with the aim of supporting the establishment of a marketplace for lower-carbon hydrogen.
The partnership is aimed at accelerating the hydrogen economy and driving the creation of a large hydrogen network in the Middle East, said Dr. Samir J. Serhan, chairman, Air Products Qudra. The network, he said, “is expected to serve the refining, chemical, and petrochemical industries.”
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.
