Baker Hughes Achieves New Hydrogen Milestones to Accelerate Transition to Hydrogen Economy

Rhea-AI Summary

Baker Hughes (BKR) announced several milestones to support the growth of the hydrogen economy, including a new hydrogen testing facility in Florence, Italy, the delivery of advanced hydrogen compression technologies for NEOM green hydrogen complex in Saudi Arabia, and new collaborations in the hydrogen sector with HyET and Green Energy Park. The company also unveiled a new Hydrogen Testing Facility for validation of its NovaLT™ industrial turbines to run blends all the way up to 100% hydrogen, completed manufacturing and testing of its NovaLT™16 hydrogen turbines for Air Products’ Net-Zero Hydrogen Energy Complex in Edmonton, and reported progress on another key Air Products’ hydrogen project in Saudi Arabia. Baker Hughes signed a collaboration agreement with HyET and a memorandum of understanding with Green Energy Park to set out the principles of the envisaged collaboration between the two companies in multiple areas of the green hydrogen value chain.

Energy Sector Analyst

Baker Hughes' unveiling of a new Hydrogen Testing Facility represents a significant commitment to the hydrogen economy, which is poised to play a pivotal role in the global energy transition. The facility's capabilities, including full load testing with complete fuel flexibility up to 100% hydrogen, positions the company as a front-runner in providing robust and reliable hydrogen-ready technologies. This strategic move not only aligns with the increasing demand for low-carbon energy solutions but also enhances Baker Hughes' competitive edge in the industrial turbines market.

The collaboration agreements with HyET and Green Energy Park further underscore the company's dedication to fostering innovation within the green hydrogen value chain. By engaging in these partnerships, Baker Hughes is tapping into the emerging market for hydrogen and ammonia-based fuels, which are essential components of the future energy mix. These collaborations could lead to the development of cutting-edge technologies that would facilitate the large-scale production, storage and transportation of green hydrogen, thereby accelerating the shift towards a more sustainable energy landscape.

Financial Analyst

The strategic investments and collaborations announced by Baker Hughes are likely to have a positive impact on the company's financial performance in the medium to long term. By establishing a new testing facility and securing contracts for hydrogen projects, the company is expanding its revenue streams and diversifying its portfolio. The focus on hydrogen-ready technologies, such as the NovaLT™16 turbine, reflects a proactive approach to capturing market share in an industry that is expected to grow significantly as nations work towards their net-zero targets.

Investors should note that the company's engagement in the NEOM project, the world's largest green hydrogen project and the expansion of its manufacturing site in Saudi Arabia, are indicative of its strategic positioning in key markets. These developments may lead to increased investor confidence and potentially enhance stock valuation, given the growing interest in companies that contribute to the energy transition. However, it is important to monitor the execution and commercial viability of these projects, as they are critical factors in realizing the anticipated financial returns.

Sustainability Expert

Baker Hughes' recent announcements reflect a broader industry trend towards sustainable energy solutions and the decarbonization of the energy sector. The company's investment in hydrogen technology and infrastructure is a clear indicator of its commitment to sustainability and reducing carbon emissions. The ability to test and validate turbines capable of running on up to 100% hydrogen is a significant technological advancement, as it directly supports the scalability of hydrogen as a clean energy source.

Furthermore, the partnerships with HyET and Green Energy Park are strategic moves that align with global sustainability goals. These collaborations aim to enhance the efficiency and cost-effectiveness of hydrogen production and distribution, which are essential for the widespread adoption of hydrogen as a viable alternative to fossil fuels. By focusing on the end-to-end hydrogen value chain, Baker Hughes is contributing to the development of a sustainable energy ecosystem that could have far-reaching environmental benefits.

• New hydrogen testing facility at Florence, Italy, manufacturing site unveiled as part of the company’s strategy to further support the deployment of hydrogen-ready technologies, such as the optimized NovaLT™16 turbine delivered to Air Products’ Net-Zero Hydrogen Energy Complex in Edmonton
  
• Progress follows delivery of advanced hydrogen compression technologies for NEOM green hydrogen complex in Saudi Arabia, as well as new collaborations in the hydrogen sector with HyET and Green Energy Park

FLORENCE, Italy, Jan. 29, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, announced Monday several milestones to support the growth of the hydrogen economy, as part of the company’s broader strategy in new energy. The milestones were announced during the 24^th Baker Hughes Annual Meeting held in Florence, Italy, and included advancements in the company’s hydrogen enabling technologies, as well as progress in executing several customers’ hydrogen projects and new collaborations in the sector.

The milestones include:

• Baker Hughes unveiled a new Hydrogen Testing Facility for validation of its NovaLT™ industrial turbines to run blends all the way up to 100% hydrogen. The new facility includes a test bench to allow full load testing, with complete fuel flexibility up to 100% hydrogen and features a 300-bar pressure and 2,450 kg storage capacity. This infrastructure, aligned to the highest standards of safety and security – which are particularly crucial when dealing with hydrogen – allows Baker Hughes to test turbines in all project conditions, providing customers with enhanced operational confidence. The new Hydrogen Testing Facility will then serve as a hub for Baker Hughes’ collaboration with customers in the growing hydrogen economy.
  
  
• Baker Hughes recently completed manufacturing and testing of its NovaLT™16 hydrogen turbines for Air Products’ Net-Zero Hydrogen Energy Complex in Edmonton, Canada. The NovaLT™16 turbines underwent full load testing at the newly unveiled Hydrogen Testing Facility. This family of turbines can be deployed for a variety of industrial applications, including combined heat and power, as well as for pipeline and gas storage operations.
  
  
• The company also reported progress on another key Air Products’ hydrogen project, with the delivery of the first two trains of advanced hydrogen compression solutions for the NEOM project in Saudi Arabia, the largest green hydrogen project in the world through the equal joint venture of ACWA Power, Air Products and NEOM. Baker Hughes recently invested in expanding its manufacturing site in Modon, Saudi Arabia, to further support the delivery of projects in the country, including NEOM, with localized testing and packaging solutions. Both projects are part of the two companies’ long-standing collaboration on hydrogen inaugurated in 2021.
  

"Baker Hughes’ advanced technology and experience are key elements of our collaboration as Air Products continues to execute some of the largest low- and zero-carbon clean hydrogen megaprojects in the world,” said Dr. Samir J. Serhan, chief operation officer, Air Products. “We are delivering tangible progress with a common goal - to drive the energy transition forward and achieve net-zero targets."

• The company also executed a collaboration agreement with HyET – a company that provides technologies for low-cost, distributed power generation and commercially viable hydrogen production at high pressure – for the development, industrialization and commercialization of an advanced hydrogen compression solution.
  
  
• Baker Hughes signed a memorandum of understanding with Green Energy Park, a vertically integrated renewable energy company with ammonia and hydrogen terminals projects worldwide, and part of Green Energy Park Global group. The agreement aims to set out the principles of the envisaged collaboration between the two companies in multiple areas of the green hydrogen value chain, including production, storage, transportation and utilization of green hydrogen and ammonia-based fuels, as well as exploration of possible co-development of related technologies and projects at the giga-watt scale.
  

“These low-carbon and carbon-free energy advancements illustrate how the urgency of the energy transition has transformed customer relationships into comprehensive partnerships for innovation across several projects,” said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “There is no path to net-zero without innovation and collaboration, and our work with customers and partners, including Air Products, is proving the validity the hydrogen economy and of our strategy to invest and develop innovative solutions to cover the entire hydrogen value chain.”

Baker Hughes’ advanced technologies and solutions serve the entire hydrogen value chain, from production to transportation and utilization. The company’s experience in hydrogen projects dates back to the 1910s, and its portfolio includes advanced compressors, gas turbines, valves, centrifugal pumps, non-metallic pipes, hydrogen sensors, monitoring and diagnostics including inspection solutions for hydrogen embrittlement in production and storage, as well as clean power solutions to produce power with hydrogen and hydrogen blends.

About Baker Hughes

Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com.

For more information, please contact:

Media Relations

Chiara Toniato
+39 3463823419
chiara.toniato@bakerhughes.com

Investor Relations

Chase Mulvehill
+1 281-809-9088
investor.relations@bakerhughes.com 

FAQ

What did Baker Hughes announce to support the growth of the hydrogen economy?

Baker Hughes announced several milestones to support the growth of the hydrogen economy, including a new hydrogen testing facility in Florence, Italy, the delivery of advanced hydrogen compression technologies for NEOM green hydrogen complex in Saudi Arabia, and new collaborations in the hydrogen sector with HyET and Green Energy Park.

What is the ticker symbol for Baker Hughes?

The ticker symbol for Baker Hughes is BKR.

What new facility did Baker Hughes unveil for validation of its NovaLT™ industrial turbines?

Baker Hughes unveiled a new Hydrogen Testing Facility for validation of its NovaLT™ industrial turbines to run blends all the way up to 100% hydrogen.

Where were the NovaLT™16 hydrogen turbines manufactured and tested?

The NovaLT™16 hydrogen turbines were manufactured and tested for Air Products’ Net-Zero Hydrogen Energy Complex in Edmonton, Canada.

What collaboration agreements did Baker Hughes sign in the hydrogen sector?

Baker Hughes signed a collaboration agreement with HyET and a memorandum of understanding with Green Energy Park to set out the principles of the envisaged collaboration between the two companies in multiple areas of the green hydrogen value chain.