Saudi Aramco to acquire 50% of Blue Hydrogen Industrial Gases

SINGAPORE (ICIS)–Aramco has signed definitive agreements to acquire 50% of Saudi Arabia-based Blue Hydrogen Industrial Gases (BHIG), a wholly owned subsidiary of Air Products Qudra (APQ), for an undisclosed fee, the energy giant said late on Tuesday.

The transaction will also include options for Aramco to offtake hydrogen and nitrogen, it said in a statement.

APQ is a joint venture between Saudi-based Qudra Energy and US industrial gases firm Air Products.

Upon completion of the transaction, Aramco and APQ are expected to each own a 50% stake in BHIG, which focuses on producing lower-carbon hydrogen through a process known as steam methane reforming (SMR).

Saudi Aramco expects its investment to contribute to creation of a lower-carbon hydrogen network in the Eastern Province, catering to both domestic and regional markets.

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

“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.”