Aramco makes big move in clean energy with 50% stake completion in a clean energy company

Dhahran: Oil giant Saudi Aramco announced Monday it has completed the acquisition of a 50 per cent stake in Saudi Arabia-based developer Blue Hydrogen Industrial Gases Company (BHIG). The company’s original owner, Air Products Qudra —a joint venture between US-based industrial gases giant Air Products and Saudi corporation Qudra Energy — will retain a 50 per cent stake.

The agreement brings together experts in their respective fields to provide the Jubail Industrial City area with hydrogen, including lower-carbon hydrogen, at scale, Aramco said in a statement. The deal was first announced in July 2024, saying that the completed deal would include options for Aramco to offtake hydrogen and nitrogen.

Ashraf Al Ghazzawi, Aramco Executive Vice President of Strategy and Corporate Development, said, “Aramco’s investment in BHIG is expected to contribute to developing 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 domestic and global emerging opportunities to reduce carbon emissions, support growth, and diversify our energy portfolio.” 

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. BHIG is expected to commence commercial operations to produce blue hydrogen in coordination with Aramco’s carbon capture and storage (CCS) activities in Jubail, Aramco said. 

Meanwhile, Ahmed Hababou, Air Products Qudra Chairman, said: “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, serving the refining, chemical, and petrochemical industries.”