Aramco has signed definitive agreements to acquire an equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG), a wholly owned subsidiary of Air Products Qudra (APQ). The agreement will also include options for Aramco to offtake hydrogen and nitrogen.

Upon completion of the transaction, Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.

This deal comes as Aramco plans to develop its lower-carbon hydrogen network in the Eastern province of Saudi Arabia, serving both domestic and regional customers.

“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,” said Ashraf Al Ghazzawi, Aramco Executive Vice President of Strategy & Corporate Development.

“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,” Al Ghazzawi added.

For his part, Dr. Samir J. Serhan, Air Products Qudra Chairman, said: “It is an honor to further extend Air Products Qudra’s strong partnership with Aramco, working to accelerate the hydrogen economy and driving the creation of the largest hydrogen network in the Middle East, which is expected to serve the refining, chemical, and petrochemical industries,”

“We look forward to providing our expertise in hydrogen and pipeline operations and supporting Aramco’s need for a reliable supply of lower-carbon hydrogen for domestic and regional requirements,” Serhan added.

BHIG is designed to produce lower-carbon hydrogen while capturing and storing CO2. The project is intended to start commercial operations in coordination with Aramco’s CCS activities.