The transaction is subject to customary closing conditions and includes the option for Aramco to offtake hydrogen and nitrogen. (Source: Shutterstock)
Aramco announced on July 16 its intent to acquire a 50% equity interest in Air Products Qudra’s (APQ) wholly-owned subsidiary Blue Hydrogen Industrial Gases Co. (BHIG).
APQ, a joint venture between Air Products and Qudra Energy, will own the other 50% stake in BHIG at the transaction’s close.
Aramco’s investment in BHIG will expand its lower-carbon hydrogen business and contribute to the development of a hydrogen network in Saudi Arabia’s Eastern Province.
“This investment highlights Aramco’s ambition to expand its new energies portfolio and grow its lower-carbon hydrogen business," said Ashraf Al Ghazzawi, Aramco executive vice president of strategy and corporate development. "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.”
BHIG’s commercial operations to produce lower-carbon hydrogen while capturing CO2 will operate in tandem with Aramco’s CCS activities.
The transaction is subject to customary closing conditions and includes the option for Aramco to offtake hydrogen and nitrogen. A price was not disclosed in the announcement.
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