Baker Hughes Selects Electricity Supplier For Certain U.S. Facilities, RECs

Baker Hughes and Shell Global Solutions BV (Shell) have signed a 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 companies said

Under a memorandum of understanding (MoU) 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.

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.

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.