Aramco to Acquire 50% Stake in Air Products Qudra’s Blue Hydrogen Industrial Gases Venture

Aramco and Air Products Qudra have formed a strategic alliance to advance their lower-carbon hydrogen production endeavors. Under the agreement, both entities will jointly own a facility based in Jubail, aimed at producing hydrogen. This collaboration includes plans to distribute hydrogen via a pipeline network spanning Saudi Arabia's Eastern Province. The partnership underscores Aramco's commitment to expanding its New Energies portfolio, positioning itself to meet the growing demand for sustainable energy solutions.

Aramco, a prominent global energy and chemicals firm, has entered into final agreements to purchase a stake in Blue Hydrogen Industrial Gases Company (BHIG), located in Jubail and a subsidiary of Air Products Qudra (APQ). The deal, pending standard closing conditions, includes provisions for Aramco to potentially acquire hydrogen and nitrogen as well.

Continuing its initiatives to advance a hydrogen business with reduced carbon footprint and broaden its array of sustainable energy offerings, Aramco anticipates that its investment in BHIG will support the establishment of a low-carbon hydrogen infrastructure in Saudi Arabia's Eastern Province. This infrastructure aims to cater to local and regional clientele. Following the transaction's completion, Aramco and APQ—Air Products' joint venture with Qudra Energy—are projected to hold equal 50% stakes in BHIG.

Ashraf Al Ghazzawi, Aramco's Executive Vice President of Strategy & Corporate Development, expressed, "This investment underscores Aramco’s commitment to expanding its portfolio in new energies and advancing its lower-carbon hydrogen initiatives. We are excited to collaborate with APQ on this endeavor and see significant commercial potential for lower-emission hydrogen. Leveraging our expanding capabilities in carbon capture and storage (CCS) alongside our expertise in hydrogen technology, we aim to facilitate the development of a robust market for lower-carbon hydrogen, thereby contributing to the evolution of future energy systems."

Dr. Samir J. Serhan, Chairman of Air Products Qudra, commented, "We are privileged to deepen our longstanding collaboration with Aramco, advancing the hydrogen economy and establishing the Middle East's largest hydrogen network. This initiative aims to support the refining, chemical, and petrochemical sectors. We are eager to contribute our expertise in hydrogen technology and pipeline operations, ensuring a dependable supply of lower-carbon hydrogen to meet Aramco's domestic and regional needs."

BHIG, engineered to generate low-carbon hydrogen with CO2 capture and storage capabilities, is scheduled to begin commercial operations aligned with Aramco's carbon capture and storage (CCS) initiatives.

Aramco stands as a global leader in integrated energy and chemicals, driving value across the entire hydrocarbon spectrum. Its operations not only sustain crucial energy supplies but also contribute significantly to the socio-economic well-being of communities worldwide.