Anglo-Dutch supermajor Shell and energy technology firm Baker Hughes have teamed up to accelerate each other’s net-zero emissions drives in a partnership that will include LNG ships and renewable energy credits.
A memorandum of understanding will see Shell provide low-carbon transportation and fuel solutions for Baker Hughes, while in turn Baker Hughes will provide low-carbon solutions for Shell’s LNG fleet through technology upgrades and compressor re-bundles, as well as develop digital solutions to accelerate decarbonisation across Shell’s global assets and operations.
Other key areas of the collaboration include Shell providing selected Baker Hughes US sites with power and renewable energy credits for a two-year period, and the companies will negotiate renewable power for Baker Hughes’ sites in Europe and Singapore. 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 has been growing its LNG carrier fleet, taking its newbuild book to 24 in July this year, with agreements in place for six ships with Knutsen LNG, Pan Ocean and investors advised by J.P. Morgan Asset Management. These ships will be some 35% more efficient than required by the EEDI and 20% more than required by the AER. The 174,000 cu m vessels will be built by Hyundai Heavy Industries and Hyundai Samho Heavy Industries. Delivery will take place from 2023.