Saudi Aramco expands hydrogen ambitions with acquisition
Date
7/18/2024 8:45:10 AM
(MENAFN) Saudi Aramco has taken a significant step in bolstering its hydrogen capabilities by finalizing agreements to acquire a 50 percent stake in Blue Hydrogen Industrial Gases Company, a subsidiary of Air Products Qudra. While financial specifics of the deal were not disclosed, it includes provisions for the acquisition of hydrogen and nitrogen assets.
Air Products Qudra, established as a joint venture between Air Products from the United States and Saudi Arabia's Qudra energy in 2017, operates within the industrial gases sector. This acquisition aligns with Saudi Arabia's strategic initiative to position itself as a major player in the global hydrogen market, viewed as pivotal for future energy needs.
The Kingdom, alongside neighboring countries, has committed substantial investments to hydrogen technologies, aiming to lead as key suppliers in this burgeoning sector. Saudi Energy Minister Prince Abdulaziz bin Salman Al Saud articulated in 2021 the nation's ambition to become the world's largest hydrogen supplier, marking hydrogen as a cornerstone of its economic diversification strategy.
These initiatives are integral components of Saudi Arabia's broader economic agenda, spearheaded by the Public Investment Fund (PIF), the kingdom's sovereign wealth fund. The agenda seeks to diminish reliance on crude oil revenues by advancing sustainable energy solutions, including hydrogen production and export capabilities.
In tandem with the acquisition, Saudi Arabia has already secured a monumental agreement for an USD8.4 billion green hydrogen plant through NEOM Green Hydrogen Company. This joint venture involves Air Products, ACWA Power, and NEOM, underscoring Saudi Arabia's commitment to fostering a robust hydrogen infrastructure to meet global energy demands sustainably.
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