Saudi Arabia’s oil giant Aramco has announced the acquisition of a 50% stake in the blue hydrogen industrial gases business of Air Products Qudra (APQ), a joint venture between Air Products of the U.S. and Qudra Energy, a Saudi startup. The agreement, finalized on Tuesday, marks another significant step in Saudi Arabia’s ambitious plans to establish itself as a leading producer of hydrogen.
Financial terms of the deal, which involves the Blue Hydrogen Industrial Gases Company (BHIG), have not been disclosed by Aramco. However, the transaction includes provisions for Aramco to procure hydrogen and nitrogen from the venture.
Saudi Arabia and its neighboring countries are heavily investing in hydrogen technologies, viewing hydrogen as a crucial fuel for the future. The kingdom aims to position itself as the world’s largest hydrogen supplier, as stated by Saudi Energy Minister Prince Abdulaziz bin Salman al-Saud in 2021. This strategic shift is part of Saudi Arabia’s broader economic strategy to reduce dependence on crude oil, spearheaded by the Public Investment Fund (PIF), the kingdom’s sovereign wealth fund.
Earlier initiatives include Saudi Arabia’s approval of an $8.4 billion green hydrogen plant led by NEOM Green Hydrogen Company, a collaboration involving Air Products, ACWA Power, and NEOM. The Public Investment Fund holds full ownership of NEOM, a planned futuristic city, and a significant 44.16% stake in ACWA Power.
