Aramco completes acquisition of 50% stake in Air Products Qudra’s hydrogen business

Saudi Arabian energy major Aramco has completed the acquisition of a 50% equity interest in Blue Hydrogen Industrial Gases Company (BHIG), a subsidiary of Air Products Qudra (APQ), a joint venture of U.S.-based Air Products and Saudi Arabian Qudra Energy.

As disclosed, BHIG targets the production of hydrogen, including lower-carbon hydrogen from natural gas, also referred to as “blue hydrogen,” through the capture and storage of carbon dioxide. The company is expected to commence commercial operations to produce blue hydrogen in coordination with Aramco’s carbon capture and storage (CCS) activities in Jubail, Saudi Arabia.

Ashraf Al Ghazzawi, Aramco’s Executive Vice President of Strategy & Corporate Development, commented: “Aramco’s investment in BHIG is expected to contribute to the development of a hydrogen network in the Kingdom of Saudi Arabia’s Eastern Province. This network, along with our CCS hub in Jubail, can help us capitalize on emerging opportunities both domestically and globally to reduce carbon emissions, support growth, and diversify our energy portfolio.”

Ahmed Hababou, Air Products Qudra’s Chairman, claimed that this joint venture is “another example of the steps Aramco and Air Products Qudra are taking to contribute to the development of a robust hydrogen network in the Kingdom’s Eastern Province,” and Mohammad Abunayyan, Air Products Qudra’s Vice-Chairman, expressed pride in this “strategic partnership focused on generating lower-carbon intensity energy solutions guided by the Kingdom’s Vision 2030.”

To remind, Aramco signed definitive agreements to acquire an equity interest in BHIG in July 2024.

The energy major is said to be focused on investing in new lower-carbon technologies with the potential to achieve emission reductions. The focus areas, reportedly, include CCS, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia and synthetic fuels.