Saudi Aramco Acquires Half Of BHIG To Boost Low-Carbon Hydrogen Production

Saudi Aramco has signed agreements to acquire a stake in the Blue Hydrogen Industrial Gases Company (BHIG), based in Jubail. BHIG is a subsidiary of Air Products Qudra (APQ). This deal, pending standard closing conditions, includes options for Aramco to offtake hydrogen and nitrogen.

Aramco's investment aims to develop a lower-carbon hydrogen network in Saudi Arabia's Eastern Province. This network will serve both local and regional customers. The transaction will result in Aramco and APQ each owning 50% of BHIG.

Ashraf Al Ghazzawi, Aramco's executive vice president of strategy & corporate development, highlighted the company's ambition to expand its new energy portfolio. He noted that this investment underscores their commitment to growing their low-carbon hydrogen business.

Al Ghazzawi expressed optimism about the commercial opportunities for low-emission hydrogen. He emphasized leveraging Aramco's capabilities in carbon capture and storage (CCS) and technical expertise in hydrogen to support a thriving low-carbon hydrogen market.

Dr. Samir J. Serhan, chairman of APQ, affirmed the company's commitment to expanding its partnership with Saudi Aramco. He stressed their dedication to accelerating the growth of the hydrogen economy.

Serhan mentioned efforts to establish the largest hydrogen network in the Middle East. This network is expected to serve refining, chemical, and petrochemical industries. He expressed eagerness to contribute APQ's expertise in hydrogen business and pipelines.

Supporting Local and Regional Needs

The collaboration aims to secure reliable supplies of low-carbon hydrogen for local and regional needs. BHIG is designed to produce lower-carbon hydrogen while capturing and storing carbon dioxide (CO2).

Commercial operations at BHIG will commence in coordination with Aramco's CCS activities. This initiative aligns with Saudi Aramco's broader goals of developing alternative energy solutions.

This partnership between Saudi Aramco and APQ marks a significant step towards creating a sustainable energy future. It highlights their joint efforts in establishing a robust low-carbon hydrogen market in the region.

With inputs from SPA