Aramco and Air Products Qudra have recently announced that Aramco has completed the acquisition of a 50 % equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company.
The focus of BHIG is to produce hydrogen, particularly “blue hydrogen,” derived from natural gas. This process involves capturing and storing carbon dioxide to reduce emissions, aligning with efforts to provide cleaner energy options. The facility’s operations will integrate with Aramco’s carbon capture and storage (CCS) efforts in Jubail, ensuring a coordinated approach to hydrogen production.
This collaboration leverages the strengths of Aramco and APQ to meet industrial energy needs in the region. By establishing BHIG, the companies aim to deliver a steady supply of hydrogen, including the lower-carbon type, to support local consumption. The initiative reflects a commitment to advancing energy solutions that balance industrial demands with environmental considerations.
Commercial production of blue hydrogen at BHIG is set to begin once the facility aligns its operations with Aramco’s CCS infrastructure. A spokesperson from Aramco stated: “This acquisition enhances our capacity to provide sustainable energy resources to Jubail.” The project emphasizes the use of captured carbon dioxide, which will be stored rather than released, contributing to reduced environmental impact.
The BHIG venture targets the specific needs of Jubail Industrial City, a key hub for industrial activities. The hydrogen produced will cater to local industries, strengthening the area’s energy framework. While the announcement highlights production for domestic use, it does not address broader trade aspects like exports or imports, keeping the focus on regional consumption.
This agreement marks a significant step in expanding hydrogen availability in Saudi Arabia’s industrial landscape. By combining expertise, Aramco and APQ aim to ensure the project meets its goals efficiently. The emphasis remains on scaling up hydrogen supply while incorporating carbon management practices, positioning BHIG as a notable contributor to the region’s energy mix.
The partnership avoids speculative claims, sticking to the outlined objectives of hydrogen production and carbon storage. It reflects a practical approach to meeting energy demands in Jubail, with no mention of unrelated economic factors. The collaboration between Aramco and APQ underscores a shared vision for advancing industrial energy solutions in a sustainable manner.
