Aramco and Air Products Qudra (APQ) announced today that Aramco has completed the acquisition of a 50 percent equity interest in the Jubail-based Blue Hydrogen Industrial Gases Company (BHIG). The agreement brings together experts in their respective fields with the aim of providing the Jubail Industrial City area with hydrogen, including lower-carbon hydrogen, at scale.
“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,” stated Ashraf Al Ghazzawi, Aramco executive vice president of strategy and corporate development.
BHIG to produce blue hydrogen through CCS
BHIG targets the production of hydrogen, including lower-carbon hydrogen from natural gas, also referred to as “blue hydrogen”, through the capture and storage of carbon dioxide. The company is expected to commence commercial operations to produce blue hydrogen in coordination with Aramco’s carbon capture and storage (CCS) activities in Jubail.
“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,” stated Ahmed Hababou, Air Products Qudra chairman.
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Aramco launches Kingdom’s first CO2 direct air capture test unit
Last week, Aramco launched Saudi Arabia’s first carbon dioxide direct air capture (DAC) test unit, capable of removing 12 tons of carbon dioxide per year from the atmosphere. The pilot plant, developed in collaboration with Siemens Energy, marks a major milestone in the company’s efforts to expand its direct air capture capabilities.
Aramco aims to use the facility as a testing platform for next-generation CO2 capture materials in Saudi Arabia’s distinct climate. It also aims to achieve cost reductions that could help accelerate the deployment of direct air capture technologies in the region.
The launch of the direct air capture test facility follows the December 2024 announcement that Aramco and its partners, Linde and SLB, had signed a shareholders’ agreement that paves the way for the development of a Carbon Capture and Storage (CCS) hub in Jubail, Saudi Arabia.
With the support of the Ministry of Energy, phase one of the new CCS hub in Jubail, in Saudi Arabia’s Eastern Province, is expected to capture and store up to nine million metric tons of CO2 annually, and construction is expected to be completed by the end of 2027.
