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Global hydrogen economy makes a big move! Saudi Aramco completes acquisition of 50% stake in blue hydrogen industrial gases.

Specialized plastic molding 2025-03-26 14:12:05

As a global leader in the energy and chemicals sector, Saudi Aramco, in collaboration with Air Products Qudra (APQ), has successfully completed the acquisition of a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), headquartered in Jubail. This partnership combines the expertise of both companies with the aim of bolstering hydrogen production in Jubail Industrial City, including the large-scale supply of low-carbon hydrogen.

BHIG primarily focuses on hydrogen production, particularly blue hydrogen, which is extracted from natural gas by applying carbon capture and storage (CCS) technology.

BHIG is a wholly-owned subsidiary of APQ, which is a joint venture between Air Products, an American company, and Qudra Energy from Palestine. Air Products, established in 1940, has more than 23,000 employees globally and a market value exceeding $50 billion. The company primarily provides industrial gases and related equipment.

Low-carbon hydrogen refers to hydrogen production where the CO2 emissions for every kilogram of hydrogen produced are less than 14.51 kilograms, commonly known in the industry as "blue hydrogen." Saudi Arabia has abundant oil and natural gas resources, giving it significant advantages in blue hydrogen production.

Blue hydrogen is a key component in reducing carbon emissions while maintaining energy efficiency, and the production of BHIG is expected to align with Saudi Aramco's broader CC activities in Jubail.

The commercial operation of BHIG will help establish a comprehensive hydrogen infrastructure in Saudi Arabia, positioning the country as a key player in the global hydrogen economy.

Ashrawi Al-Gazzawi, Executive Vice President of Strategy and Business Development at Saudi Aramco, emphasized in his comments on this acquisition that the investment will play a key role in developing a robust hydrogen network in the Eastern Province of Saudi Arabia. He highlighted that the integration of BHIG's hydrogen production with Saudi Aramco’s CCS center in Jubail will unlock new opportunities domestically and internationally. This strategic move is expected to contribute to reducing carbon emissions, promoting economic growth, and diversifying the company's energy portfolio in line with global sustainable development trends.

Ahmed Hababou, Chairman of Qudra Air Products Company, emphasized the importance of this joint venture and stated that this collaboration marks a significant milestone in the expansion of Saudi Arabia's hydrogen network. He noted that BHIG will supply hydrogen to sectors such as refining, chemicals, and petrochemicals, thereby strengthening the country's industrial base and its capability to provide clean energy solutions.

Mohammad Abunayyan, Vice Chairman of Air Products Qudra, expressed a similar view, stating that he is confident in the strategic partnership with Saudi Aramco. He described the joint venture as a testament to the commitment of both companies to advancing low-carbon energy solutions. Abunayyan further emphasized that this initiative aligns with the Kingdom of Saudi Arabia's Vision 2030 sustainability goals, which prioritize reducing carbon intensity, promoting economic diversification, and positioning Saudi Arabia as a leader in the hydrogen economy.

By combining Saudi Aramco's expertise in energy production and carbon capture with Air Products' experience in hydrogen supply and infrastructure development, this joint venture is expected to accelerate the adoption of hydrogen as a cleaner energy source. This collaboration reflects a broader global push for decarbonization and supports Saudi Arabia's ambition to become a major exporter of low-carbon hydrogen.

With the completion of this acquisition, BHIG will be able to expand hydrogen production, support industrial decarbonization, and contribute to the development of sustainable energy solutions in this region and beyond.

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Global hydrogen economy makes a big move! Saudi Aramco completes acquisition of 50% stake in blue hydrogen industrial gases.

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