Aramco to Acquire 50% Stake in Air Products Qudra's Blue Hydrogen Industrial Gases Company

• Aramco and Air Products Qudra Join Forces to Develop Lower-Carbon Hydrogen Production Business

• Companies agree shared ownership of Jubail firm, with plans to supply hydrogen through a pipeline network in Saudi Arabia's Eastern Province

• Agreement aims to support growth of Aramco's New Energies portfolio

DHAHRAN, Saudi Arabia, July 16, 2024 /PRNewswire/ -- Aramco, one of the world's leading integrated energy and chemicals companies, 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.

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Building on its efforts to develop a lower-carbon hydrogen business and expand its portfolio of alternative energy solutions, Aramco 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% 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. We are delighted to partner with APQ on this journey and believe there are promising commercial opportunities for hydrogen with lower emissions. We intend to leverage our growing capabilities in carbon capture and storage (CCS), as well as our technical expertise in hydrogen, with the ambition to support the establishment of a vibrant marketplace for lower-carbon hydrogen — helping lay the foundations of a future energy system."

Dr. Samir J. Serhan, Air Products Qudra Chairman, said: "It is an honor to further extend Air Products Qudra's strong partnership with Aramco, working to accelerate the hydrogen economy and driving the creation of the largest hydrogen network in the Middle East, which is expected to serve the refining, chemical, and petrochemical industries. We look forward to providing our expertise in hydrogen and pipeline operations and supporting Aramco's need for a reliable supply of lower-carbon hydrogen for domestic and regional requirements."

BHIG, which is designed to produce lower-carbon hydrogen while capturing and storing CO2, is intended to commence commercial operations in coordination with Aramco's CCS activities.

About Aramco

As one of the world's leading integrated energy and chemicals companies, our global team is dedicated to creating impact in all that we do, from providing crucial oil supplies to developing new energy technologies. We focus on making our resources more dependable, more sustainable and more useful, helping to promote growth and productivity around the world. Aramco

About Air Products Qudra

Air Products Qudra (APQ) is the leading development and investment company in the Middle East and was formed as a joint venture between Air Products and Qudra Energy, a subsidiary of Vision Invest. APQ is bringing world-leading technologies and global capabilities to build, own, and operate large-scale hydrogen, industrial gases, and energy facilities. APQ is working closely with industries including refineries, chemical, and petrochemical companies, as well as with governments as a trusted leader and sustainability partner, supporting countries to achieve their industrial growth and sustainability targets.