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    Baker Hughes, Shell team for low-carbon work


An agreement between the two extends to LNG and renewable power.

by: Daniel Graeber

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Baker Hughes, Shell team for low-carbon work

US upstream services company Baker Hughes and Anglo-Dutch major Shell agreed November 10 to work together to find ways to decarbonise the energy and industrial sectors.

"As a first step in the collaboration, the parties seek to finalise Shell’s supply of certain Baker Hughes US facilities with power and renewable energy credits for a two-year period," the parties said.


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A memorandum of understanding details further potential collaboration in renewable power and LNG.

Baker Hughes so far this year relied on renewable electricity to satisfy 22% of its global demand. The partnership with Shell could see that increase by 2%. Both parties committed to negotiating for as much as 100 GWh of renewable power for Baker Hughes facilities in Europe and the possible deployment of solar power at a chemical plant in Singapore controlled by the upstream company.

Further opportunities exist to find low-carbon transportation solutions for Baker Hughes, while Shell will search for ways that Baker Hughes can support the energy major’s LNG fleet.

Both parties are pursuing other low-carbon opportunities. The renewable energy division of Shell joined forces November 9 with Norwegian aluminium and renewable energy company Norsk Hydro to examine potential developments in hydrogen, while Baker Hughes made a similar move with Canadian hydrogen developer Ekona Power.

“The urgency around the energy transition to meet Paris Agreement goals requires collaboration to accelerate actionable steps to reduce emissions in various ways,” said Lorenzo Simonelli, the CEO at Baker Hughes.