Baker Hughes, Shell partner on decarbonisation options
Energy technology company Baker Hughes (BKR:NYSE) and Royal Dutch Shell Plc (AMS:RDSA) have signed a memorandum of understanding (MoU) to help each other reach net-zero carbon emissions by 2050, starting with Shell supplying renewable energy to some Baker Hughes sites.
The US oilfield services provider and the Anglo-Dutch oil group said on Wednesday the collaboration builds on their existing relationship and covers several areas.
Initially, Sell will supply certain Baker Hughes facilities in the US with power and renewable energy credits for a two-year period, increasing Baker Hughes’ global renewable electricity consumption to an expected 24% annually from 22% in 2021. The two will also negotiate supply of up to 100 GWh of renewable electricity for Baker Hughes sites in Europe and consider on-site solar for Baker Hughes’ chemical blending plant in Singapore.
As part of the collaboration, the companies will also explore options such as Shell providing low-carbon transportation and fuel solutions for Baker Hughes, and Baker Hughes providing low-carbon solutions for Shell’s liquefied natural gas (LNG) fleet through technology upgrades and compressor re-bundles. Baker Hughes will also help Shell advance decarbonisation across its global assets and operations through the development of digital solutions.
In addition, Shell and Baker Hughes will look into opportunities to offer solutions for hard to abate industries.