Baker Hughes to provide low-carbon tech for Shell’s LNG fleet

US energy services firm Baker Hughes will work with energy giant Shell to provide low-carbon technology solutions for the latter’s LNG fleet as part of a broad cooperation deal aimed at slashing emissions.

The two firms said on Wednesday they have signed a strategic 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 intends to build on the existing relationship between Shell and Baker Hughes in several areas.

Under the deal, LNG giant Shell will initially provide selected Baker Hughes US sites with power and renewable energy credits and the companies will negotiate renewable power for Baker Hughes’ sites in Europe and Singapore.

Also, Shell and Baker Hughes 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.

“Shell will evaluate opportunities for Baker Hughes to provide low-carbon solutions for Shell’s LNG fleet through technology upgrades and compressor re-bundles,” the statement said.

According to its website, Shell manages over 40 LNG carriers, one of the largest LNG fleets in the world.

Baker Hughes will also help Shell develop digital solutions to accelerate decarbonization across Shell’s global assets and operations.

Moreover, the two companies would further explore potential opportunities to co-invest and participate in new models to decarbonize energy and industrial sectors, they said.

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