Baker Hughes and Shell Sign Broad Collaboration Agreement to Accelerate Energy Transition, Achieve Net-Zero Emissions
10 November 2021 - 2:00PM
Business Wire
Energy technology company Baker Hughes (BKR: NYSE) and Shell
Global Solutions BV (Shell) have signed a broad strategic
collaboration agreement to accelerate the global energy transition
by helping each other achieve their respective commitments for
net-zero carbon emissions and advancing solutions to decarbonize
energy and industrial sectors.
The memorandum of understanding (MoU) intends to build on the
existing relationship between Shell and Baker Hughes in key
areas:
- Shell will initially provide selected Baker Hughes U.S. sites
with power and renewable energy credits and the companies will
negotiate renewable power for Baker Hughes’ sites in Europe and
Singapore.
- Shell and Baker Hughes also agreed to broader collaboration to
identify other opportunities to accelerate each other’s transition
to net-zero carbon emissions by 2050, such as Baker Hughes
providing low-carbon technology solutions for Shell’s LNG
fleet.
- The two companies will further explore potential opportunities
to co-invest and participate in new models to decarbonize energy
and industrial sectors.
“Our agreement with Shell is another example of how we are
collaborating in new ways to meet net-zero targets for our company
and for our customers,” said Lorenzo Simonelli, Baker Hughes
chairman and CEO. “The urgency around the energy transition to meet
Paris Agreement goals requires collaboration to accelerate
actionable steps to reduce emissions in various ways."
Harry Brekelmans, projects & technology director at Shell,
said: “Shell and Baker Hughes both have clear ambitions to
decarbonize and have already made progress through technical
innovations. I’m proud of the work that has been done so far, and
with this new agreement, we are taking it one step further. It will
enable us – and our partners – to push the boundaries of what can
be achieved and move even closer toward our net-zero targets.”
Power agreement for certain Baker Hughes sites
As a first step in the collaboration, the parties seek to
finalize Shell’s supply of certain Baker Hughes U.S. facilities
with power and renewable energy credits for a two-year period. In
2021, Baker Hughes’ global renewable electricity consumption was
22%, and with this agreement, it is expected to grow by 2% to 24%
annually. Shell and Baker Hughes will also negotiate supply of up
to 100 GWh of renewable power for Baker Hughes facilities in Europe
and explore the development of an on-site solar solution for Baker
Hughes’ chemical blending plant in Singapore.
Other solutions to meet companies’ net-zero carbon emissions
targets
Shell and Baker Hughes will further collaborate to explore
additional opportunities to help Baker Hughes accelerate its
transition to net-zero carbon equivalent emissions, including Shell
providing low-carbon transportation and fuel solutions for Baker
Hughes.
In turn, Shell will evaluate opportunities for Baker Hughes to
provide low-carbon solutions for Shell’s LNG fleet through
technology upgrades and compressor re-bundles. Baker Hughes will
also help Shell develop digital solutions to accelerate
decarbonization across Shell’s global assets and operations.
Exploration of new collaboration models to decarbonize energy
and industrial sectors
In addition to advancing each other’s own emissions reductions,
Shell and Baker Hughes will collaborate to explore opportunities to
offer solutions for hard to abate industries globally.
Shell and Baker Hughes have already achieved important results
through their long-standing relationship, including:
- Baker Hughes was the first supplier to participate in Shell’s
‘Supplier Energy Transition Hub’ - a key collaboration and
co-learning platform where suppliers define and estimate their
emissions reduction ambitions while learning from other industry
experiences.
- Under the Open AI Energy Initiative (OAI), Baker Hughes helped
Shell develop and bring to market solutions to accelerate
decarbonization across Shell’s assets and the wider industry.
- The two companies also introduced VitalyX, a digital
lubrication oil monitoring system using the latest digital
technologies to ensure the uptime, performance, and optimization of
a customers’ marine fleet.
About Baker Hughes
Baker Hughes (NYSE: BKR) is an energy technology company that
provides solutions to energy and industrial customers worldwide.
Built on a century of experience and with operations in over 120
countries, our innovative technologies and services are taking
energy forward – making it safer, cleaner and more efficient for
people and the planet. Visit us at bakerhughes.com.
About Shell
Royal Dutch Shell plc is incorporated in England and Wales‚ has
its headquarters in The Hague and is listed on the London‚
Amsterdam‚ and New York stock exchanges. Shell companies have
operations in more than 70 countries and territories with
businesses including oil and gas exploration and production;
production and marketing of liquefied natural gas and gas to
liquids; manufacturing‚ marketing and shipping of oil products and
chemicals and renewable energy projects. For further information‚
visit www.shell.com. The companies in which Royal Dutch Shell plc
directly and indirectly owns investments are separate legal
entities. In this document “Shell” is sometimes used for
convenience where references are made to Royal Dutch Shell plc and
its subsidiaries in general.
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Baker Hughes Contacts
Baker Hughes Media Relations: Stephanie Price +1 281 605
8399 stephanie.price@bakerhughes.com
Baker Hughes Investor Relations: Jud Bailey +1
281-809-9088 investor.relations@bakerhughes.com
Shell Contacts
Shell Media Relations: Laura van Lingen +31 70 377 8750
media-nl@shell.com
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