In a move signalling a shift towards cleaner energy sources, Saudi Aramco, the world’s largest oil producer, has acquired a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG).
BHIG, based in Jubail, eastern Saudi Arabia, is a subsidiary of Air Products Qudra (APQ), a joint venture between American industrial gas giant Air Products and Saudi corporation Qudra Energy. The deal paves the way for Aramco and APQ to become equal partners in BHIG.
This strategic investment highlights Aramco’s efforts to diversify its energy portfolio and explore lower-carbon alternatives. BHIG produces “blue hydrogen,” using natural gas.
The agreement includes options for Aramco to purchase hydrogen and nitrogen.
“This investment will contribute to developing a lower-carbon hydrogen network in Saudi Arabia’s Eastern Province,” stated Aramco, aiming to serve domestic and regional customers.
The deal is expected to be a catalyst for creating a vast hydrogen network across the Middle East, specifically targeting the refining, chemical, and petrochemical industries, according to APQ chairman Samir Serhan.
BHIG’s production process is designed to capture and store the CO2 emissions generated during hydrogen creation, aligning with Aramco’s existing carbon capture and storage (CCS) activities.
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