Saudi Aramco to acquire stake in Air Products' blue hydrogen company
Saudi 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), it announced on 16 July. The transaction, which is subject to standard closing conditions, will also include options for Aramco to offtake hydrogen and nitrogen.
Aramco expects its investment in BHIG to contribute to the development of a lower-carbon hydrogen network in Saudi Arabia’s Eastern Province, serving both domestic and regional customers. 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. The company did not disclose the value of the deal.
Ashraf Al Ghazzawi, Aramco executive vice president of strategy & 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.”
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.
This deal comes just a week after Air Products agreed to sell its LNG process technology and equipment business for $1.81bn to Honeywell in an all-cash transaction. The new offering will encompass natural gas pre-treatment and liquefaction, utilising digital automation technologies unified under the Honeywell Forge and Experion platforms.