Saudi Aramco Expands Clean Energy Portfolio with 50% Stake in BHIG to Advance Carbon Reduction in Saudi Arabia

Saudi Aramco has finalized the acquisition of a 50% stake in Blue Hydrogen Industrial Gases Company (BHIG), a Saudi-based hydrogen developer, strengthening its commitment to clean energy and carbon reduction. The remaining 50% stake will continue to be held by Air Products Qudra, a joint venture between US-based industrial gases company Air Products and Saudi’s Qudra Energy.

The partnership aims to expand hydrogen production, including lower-carbon hydrogen, to support Saudi Arabia’s clean energy transition. The deal, initially announced in July 2024, includes provisions for Aramco to offtake hydrogen and nitrogen for industrial applications.

“Aramco’s investment in BHIG is expected to contribute to developing a hydrogen network in the Kingdom’s Eastern Province. This network, along with our CCS hub in Jubail, can help us capitalize on domestic and global emerging opportunities to reduce carbon emissions, support growth, and diversify our energy portfolio,” said Ashraf Al Ghazzawi, Aramco’s Executive Vice President of Strategy and Corporate Development.

BHIG is set to produce blue hydrogen from natural gas by capturing and storing carbon dioxide, aligning with Aramco’s carbon capture and storage (CCS) initiatives in Jubail. The company is expected to begin commercial operations soon, further integrating hydrogen into the refining, chemical, and petrochemical industries.

“This joint venture is another step toward building a robust hydrogen network in the Eastern Province, supporting cleaner energy solutions,” said Ahmed Hababou, Chairman of Air Products Qudra.

With this acquisition, Aramco advances its role in the clean energy sector, reinforcing Saudi Arabia’s ambitions to become a global leader in hydrogen production and carbon reduction.