The transaction, which is subject to standard closing conditions, will also include options for Aramco to offtake hydrogen and nitrogen. Upon its completion, Aramco and APQ, a joint venture between Air Products and Qudra Energy, are expected to each own a 50% stake in BHIG.
Aramco said the company expects this investment to contribute to the development of a lower-carbon hydrogen network in Saudi Arabia’s Eastern Province, serving both domestic and regional customers.
Ashraf Al Ghazzawi, Aramco’s Executive Vice President of Strategy & Corporate Development, commented: “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. 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.”
Samir J. Serhan, Air Products Qudra’s Chairman, stated: “It is 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.”
According to Aramco, 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.
To note, Aramco is focused on investing in new lower-carbon technologies with the potential to achieve emission reductions. The focus areas include CCS, greenhouse gas emissions, energy efficiency, nature-based climate solutions, digital sustainability, hydrogen, ammonia and synthetic fuels.
