Shell Global Solutions BV and energy technology company Baker Hughes announced this Wednesday they are up to collaborate to advance their net-zero emissions commitments and to advance solutions to decarbonize the energy and industrial sectors. The arrangement came to be as a Memorandum of Understanding.
The agreement intends to build a mutual platform for the identification of opportunities in various areas. It also expands both companies’ individual actions in regards to the energy transition. About the matter, Lorenzo Simonelli, Baker Hughes, said. “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.”
He also remarked. “The urgency around the energy transition to meet Paris Agreement goals requires collaboration to accelerate actionable steps to reduce emissions in various ways.”
On the other hand, Harry Brekelmans, Projects & Technology Director at Shell, said. “I’m proud of the work that has been done so far… This agreement will enable us to push the boundaries of what can be achieved and move even closer toward our net-zero targets.”
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Shell and Baker Hughes collaborating in key areas
Firstly, under the MoU, the parties seek to finalize Shell’s supply of certain Baker Hughes U.S. facilities with power and renewable energy credits for two years. This will increase Baker Hughes’ use of renewable energy by 2% to a total of 24% annually.
Moreover, Shell and Baker Hughes will also negotiate a supply of up to 100 GWh of renewable power for Baker Hughes facilities in Europe. They will also explore the development of an on-site solar solution for Baker Hughes’ chemical blending plant in Singapore.
Furthermore, Shell will provide low-carbon transportation and fuel solutions for Baker Hughes. At the same time, Baker Hughes would offer low-carbon solutions to Shell’s LNG fleet through technology upgrades and compressor re-bundles.
Finally, from all the solutions leveraged after the MoU, the two companies will explore and expand opportunities to offer similar solutions to industrial users globally.