Aramco to acquire 50% stake in Air Products Qudra’s Blue Hydrogen Industrial Gases Company

Aramco has signed definitive agreements to acquire an equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG), a wholly owned subsidiary of Air Products Qudra (APQ). 

The transaction, which is subject to standard closing conditions, will also include options for Aramco to offtake hydrogen and nitrogen. 

Building on its efforts to develop a lower-carbon hydrogen business and expand its portfolio of alternative energy solutions, Aramco expects that its investment in BHIG will contribute to the development of a lower-carbon hydrogen network in the Kingdom’s Eastern Province, serving domestic and regional customers alike. 

Upon completion of the transaction, Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.

“This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business. We are delighted to partner with APQ on this journey and believe there are promising commercial opportunities for hydrogen with lower emissions,” said Ashraf A. Al Ghazzawi, Aramco executive vice president of Strategy and Corporate Development, said.

We intend to leverage our growing capabilities in carbon capture and storage (CCS), 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 A. Al Ghazzawi

Samir J. Serhan, Air Products Qudra chairman, said it was an honor “to further extend Air Products Qudra’s strong partnership with Aramco, working to accelerate the hydrogen economy and driving the creation of the largest hydrogen network in the Middle East, which is expected to serve the refining, chemical, and petrochemical industries.

“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,” Serhan added.

BHIG, which is designed to produce lower-carbon hydrogen while capturing and storing CO₂, is intended to commence commercial operations in coordination with Aramco’s CCS activities.  

Caption for top photo: At the signing ceremony are Ebubekir Koyuncu, APQ CEO, sitting left; and Mohanad M. Alamdar, Aramco acting senior vice president of New Business Development, sitting right. Standing, from left, are Ashraf A. Al Ghazzawi, Aramco executive vice president of Strategy and Corporate Development; Samir Serhan, APQ chairman; Seifi Ghasemi, Air Products chairman, president and CEO; Amin Nasser, Aramco president and CEO; Mohammed Abunayyan, APQ vice chairman; and Mohammed Y. Al Qahtani, Aramco Downstream president.