Dutch Shell and Baker Hughes boost energy transition

Sustainable energy

The Netherlands – Shell Global Solutions (Shell) and energy technology company Baker Hughes have signed a broad strategic collaboration agreement to accelerate the global energy transition by assisting each other in meeting their respective net-zero carbon emissions commitments and advancing solutions to decarbonize the 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.

As a first step in the collaboration, the parties hope to finalize Shell’s supply of power and renewable energy credits to certain Baker Hughes U.S. facilities for a two-year period. Baker Hughes’ global renewable electricity consumption was 22% in 2021, and with this agreement, it is expected to increase by 2% to 24% annually. Shell and Baker Hughes will also explore the development of an on-site solar solution for Baker Hughes’ chemical blending plant in Singapore, as well as the supply of up to 100 GWh of renewable energy for Baker Hughes facilities in Europe.

Shell and Baker Hughes will work together to explore additional opportunities to help Baker Hughes accelerate its transition to net-zero carbon equivalent emissions, such as Shell providing low-carbon transportation and fuel solutions.

Shell, for its part, will look into 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 assist Shell in the development of digital solutions to accelerate decarbonization across all of Shell’s global assets and operations.

In addition to advancing each other’s emissions reductions, Shell and Baker Hughes will work together to explore opportunities to provide solutions for difficult-to-reduce industries around the world.

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.