- Aramco and Air Products Qudra join forces to develop
lower-carbon hydrogen production business
- Companies agree shared ownership of Jubail firm, with plans
to supply hydrogen through a pipeline network in Saudi Arabia's Eastern Province
- Agreement aims to support growth of Aramco's New Energies
portfolio
DHAHRAN, Saudi Arabia, July 16,
2024 /CNW/ -- Aramco, one of the world's leading
integrated energy and chemicals companies, 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 its investment in BHIG will contribute to the
development of a lower-carbon hydrogen network in the Kingdom of 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.
Ashraf Al Ghazzawi, Aramco
Executive Vice President of Strategy & Corporate Development,
said: "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."
Dr. Samir J. Serhan, Air
Products Qudra Chairman, said: "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."
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.
@aramco
About Aramco
As one of the world's leading integrated energy and chemicals
companies, our global team is dedicated to creating impact in all
that we do, from providing crucial oil supplies to developing new
energy technologies. We focus on making our resources more
dependable, more sustainable and more useful, helping to promote
growth and productivity around the world.
https://www.aramco.com
About Air Products Qudra
Air Products Qudra (APQ) is the leading development and
investment company in the Middle
East and was formed as a joint venture between Air Products
and Qudra Energy, a subsidiary of Vision Invest. APQ is bringing
world-leading technologies and global capabilities to build, own,
and operate large-scale hydrogen, industrial gases, and energy
facilities. APQ is working closely with industries including
refineries, chemical, and petrochemical companies, as well as with
governments as a trusted leader and sustainability partner,
supporting countries to achieve their industrial growth and
sustainability targets.
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SOURCE Aramco