Benzinga | Nov 10, 2021 08:25AM EST

Baker Hughes And Shell Sign Broad Collaboration Agreement To Accelerate Energy Transition, Achieve Net-Zero Emissions

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."