RIYADH: Energy giant Saudi Aramco is set to acquire a 50 percent stake interest in the Jubail-based Blue Hydrogen Industrial Gases Co.
The deal, pending standard closing conditions, will also grant the firm options to purchase hydrogen and nitrogen from BHIG, a wholly-owned subsidiary of Air Products Qudra.
Saudi Aramco anticipates that its investment will help develop a lower-carbon hydrogen network in the Eastern Province of the Kingdom, serving both domestic and regional customers.
This builds on its efforts to develop a lower-carbon hydrogen business and expand its portfolio of alternative energy solutions as Saudi Arabia steadily progresses to achieve its net-zero ambition by 2060.
After the deal closes, Aramco and APQ – a joint venture between Air Products and Qudra Energy – Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.are expected to hold 50 percent of BHIG between them.
“We intend to leverage our growing capabilities in carbon capture and storage, 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,” Ashraf Al-Ghazzawi, Aramco’s executive vice president of Strategy and Corporate Development said.
He added: “This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business. We believe there are promising commercial opportunities for hydrogen with lower emissions.”
It is also expected to serve the refining, chemical, and petrochemical industries
BHIG is designed to produce lower-carbon hydrogen while capturing and storing CO2 and is set to begin commercial operations in alignment with Aramco’s carbon capture and storage initiatives.
“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,” Samir Serhan, chairman of APQ said.
Source: Arab News
