Aramco Secures 50% Stake in Jubail’s Blue Hydrogen Industrial Gases Company to Boost Low-Carbon Hydrogen Production

Saudi Aramco and Air Products Qudra (APQ) have announced the completion of Aramco’s acquisition of a 50 percent equity stake in the Blue Hydrogen Industrial Gases Company (BHIG), headquartered in Jubail Industrial City. This strategic partnership unites expertise from both entities to supply hydrogen, including lower-carbon blue hydrogen, at scale to the Jubail region.

Ashraf Al Ghazzawi, Aramco’s Executive Vice President of Strategy and Corporate Development, emphasized the significance of this investment: “Aramco’s investment in BHIG is expected to contribute to the development of a hydrogen network in the Kingdom of Saudi Arabia’s Eastern Province. This network, along with our CCS hub in Jubail, can help us capitalize on emerging opportunities both domestically and globally to reduce carbon emissions, support growth, and diversify our energy portfolio.”

BHIG’s core objective is to produce hydrogen, particularly blue hydrogen derived from natural gas, by integrating carbon dioxide capture and storage technologies. The company plans to commence commercial operations aligned with Aramco’s ongoing CCS activities in Jubail, facilitating the capture and sequestration of CO2 emissions associated with hydrogen production.

Ahmed Hababou, Chairman of Air Products Qudra, highlighted the joint venture’s role in regional industrial development: “This joint venture is another example of the steps Aramco and Air Products Qudra are taking to contribute to the development of a robust hydrogen network in the Kingdom’s Eastern Province, serving the refining, chemical, and petrochemical industries.”

This announcement follows Aramco’s recent launch of Saudi Arabia’s first carbon dioxide direct air capture (DAC) test unit, developed in partnership with Siemens Energy. The pilot facility is capable of removing 12 tons of CO2 annually from the atmosphere and serves as a platform to test next-generation CO2 capture materials under Saudi Arabia’s unique climate conditions. Aramco aims to reduce costs and accelerate the deployment of DAC technologies regionally through this initiative.

In December 2024, Aramco, alongside partners Linde and SLB, signed a shareholders’ agreement to develop a Carbon Capture and Storage hub in Jubail. Supported by the Ministry of Energy, the first phase of this CCS hub is projected to capture and store up to nine million metric tons of CO2 per year, with construction slated for completion by the end of 2027.

These developments form part of Saudi Arabia’s broader strategy to expand its hydrogen economy and reduce carbon emissions in key industrial sectors. The BHIG joint venture and CCS infrastructure are expected to play pivotal roles in supporting the refining, chemical, and petrochemical industries in the Eastern Province.

Additional recent contracts and collaborations underscore Aramco’s commitment to sustainable energy and industrial growth, including steel pipe supply agreements with Arabian Pipes Company valued at $64.2 million and a partnership with Riyadh Air to advance low-carbon fuel supply and sustainability initiatives.

As Saudi Arabia continues to position itself as a leader in energy transition, these integrated efforts in hydrogen production, carbon capture, and sustainable fuel development highlight the Kingdom’s focus on diversifying its energy portfolio and achieving long-term environmental goals.