Aramco 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 said it 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 per cent 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."