Aramco shakes up energy market with game-changing hydrogen investment

Aramco, a global leader in integrated energy and chemicals, has announced its acquisition of a significant equity stake in Blue Hydrogen Industrial Gases Company (BHIG), based in Jubail. This transaction, pending standard closing conditions, includes options for hydrogen and nitrogen offtake for Aramco, highlighting a significant stride in its green energy initiatives.

In a strategic move towards sustainable energy, Aramco will own a 50% stake in Blue Hydrogen Industrial Gases Company, aligning with Air Products Qudra (APQ), which retains the remaining shares. APQ, a joint venture between Air Products and Qudra Energy, stands as a pivotal player in the Middle Eastern hydrogen and industrial gases market.

Ashraf Al Ghazzawi, Aramco’s Executive Vice President of Strategy & Corporate Development, expressed his enthusiasm for this venture: “This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business. We are delighted to partner with APQ on this journey and believe there are promising commercial opportunities for hydrogen with lower emissions.” Aramco aims to utilize its advanced carbon capture and storage (CCS) technologies and hydrogen expertise to foster a robust market for eco-friendly hydrogen, setting the groundwork for a sustainable energy future.

Aramco’s latest investment in BHIG is revolutionizing the hydrogen market and promoting sustainable energy solutions.

Dr. Samir J. Serhan, Chairman of Air Products Qudra, also remarked on the deepening partnership: “It is an honor to further extend our strong partnership with Aramco, working to accelerate the hydrogen economy and driving the creation of the largest hydrogen network in the Middle East.” He emphasized APQ’s commitment to ensuring a reliable supply of lower-carbon hydrogen to meet both domestic and regional needs.

Blue Hydrogen Industrial Gases Company, designed for low-carbon hydrogen production integrated with CO2 capture and storage, is set to commence commercial operations soon, aligning with Aramco’s CCS initiatives.

This partnership marks a pivotal development in the region’s energy landscape, setting a precedent for sustainable industrial growth and energy solutions.