Baker Hughes and Hanwha Announce Partnership to Develop Small-Size Ammonia Turbines
Rhea-AI Summary
Baker Hughes (NASDAQ: BKR) has partnered with Hanwha Power Systems and Hanwha Ocean through a Joint Development and Collaboration Agreement (JDCA) to develop small-size turbines for ammonia applications. The partnership combines Baker Hughes' gas turbine technology with Hanwha's ammonia combustion system.
The new ammonia turbine (~16MW power range) will be suitable for marine, onshore, and offshore applications, including electric generation and mechanical drive. Hanwha Ocean will be the primary beneficiary, implementing the solution in future vessels. Hanwha has successfully tested a proof-of-concept combustor using 100% ammonia fuel, while Baker Hughes completed initial turbine feasibility studies in 2024.
The companies aim to complete full engine testing with ammonia by end-2027, after which the turbine will be commercially available. This development follows Baker Hughes' January 2024 announcement of successful testing of the world's first 100% hydrogen turbine.
Positive
- Partnership enables entry into growing ammonia-powered marine propulsion market
- Successful proof-of-concept testing completed for 100% ammonia combustor
- Clear commercialization timeline with full engine test completion by end-2027
- Secured initial customer (Hanwha Ocean) for implementation in future vessels
Negative
- Commercial revenue generation delayed until after 2027
- Significant R&D investment required through 2027 development period
Insights
The strategic partnership between Baker Hughes and Hanwha marks a pivotal advancement in maritime propulsion technology, positioning both companies to capture a significant share of the emerging green maritime market. The development of 16MW ammonia turbines addresses a critical gap in the industry's decarbonization toolkit, particularly for medium-sized vessels where alternative solutions like hydrogen fuel cells or battery systems face practical limitations.
The technology's dual-fuel capability with natural gas provides important operational flexibility during the transition period, reducing adoption risks for shipowners. This is especially relevant as ammonia bunkering infrastructure develops globally. The collaboration leverages complementary strengths: Baker Hughes' proven turbine expertise (demonstrated by their recent 100% hydrogen turbine achievement) and Hanwha's ammonia combustion technology and shipbuilding capabilities.
Market timing is strategic, aligning with:
- IMO's strengthened emissions regulations taking effect in 2026
- Growing pressure on shipping companies to adopt low-carbon solutions
- Expanding global ammonia production and distribution infrastructure
The 2027 commercialization target positions the technology to capture early-mover advantages in the maritime energy transition, potentially establishing industry standards for ammonia propulsion systems. This could create significant recurring revenue streams through both equipment sales and long-term service agreements.
- Agreement to focus on creation of
100% ammonia combustion dual fuel with natural gas small-size turbines - Ammonia is a low-carbon fuel that can play a critical role in decarbonizing hard-to-abate sector, including marine transportation
- Collaboration to deliver efficiency comparable to reciprocating engines while minimizing carbon emissions
FLORENCE, Italy, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, Hanwha Power Systems and Hanwha Ocean announced Monday a Joint Development and Collaboration Agreement (JDCA) for a new small-size turbine for ammonia applications that will leverage Baker Hughes’ small-size gas turbine technology and Hanwha’s ammonia combustion system. The agreement was signed during the Baker Hughes 2025 Annual Meeting in Florence. The new ammonia turbine will be suitable for marine applications but also for onshore and offshore applications, and for electric generation and mechanical drive.
Ammonia is a critical fuel in enabling the decarbonization of hard-to-abate sectors, including marine, oil and gas, and power. Hanwha Ocean, one of South Korea’s leading shipbuilders, will be the main beneficiary of the JDCA and will adopt the new solution as a propulsion system for their future vessels, thus enabling maritime decarbonization.
Hanwha already tested successfully a proof-of-concept of the combustor, with
“Decarbonizing hard-to-abate industries and transportation is one of the most pressing but high-potential opportunities of our time,” said Alessandro Bresciani, senior vice president of Climate Technology Solutions at Baker Hughes. “We believe fuel switching to ammonia will play a key role in achieving significant emissions reductions across these sectors, and to realize this ambition, the industry needs more partnerships such as this. Together, we will continue to lead by example and take energy forward.”
“We are very excited to be collaborating with Baker Hughes to deliver an innovative and efficient solution to enhance the adoption of ammonia as a fuel for the propulsion system for future vessels. This collaboration marks a significant turning point in accelerating the transition to low-carbon fuel propulsion in the global maritime industries,” said James Shon, senior executive vice president and head of Product Strategy and Technology at Hanwha Ocean.
“The transition to low carbon fuels is a mission for everyone in the marine sector. We aim to play a key role in the decarbonization of the sector, together with Baker Hughes, by supporting ammonia combustion and packaging systems,” said Nuno Kim, executive vice president and head of Hanwha Power Systems Ship Solution Division.
Baker Hughes is currently exploring how its small-size gas turbines can accelerate the transition from diesel motors to turbines powered by ammonia and hydrogen. In January 2024, the company announced the completion of the successful testing of the world’s first
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.
About Hanwha
Founded in 1952, Hanwha has grown quickly by anticipating and responding to changing business environments with a balanced business portfolio that includes energy & materials, aerospace, finance and retail & services. Our expertise and synergy in key areas have catapulted us into the seventh-largest business in South Korea and a Fortune Global 500 company. Hanwha continues to grow rapidly as we strive to pursue global leadership in all of our businesses. We are building a robust foundation for sustainable development and a brighter future for everyone. For more information, visit: www.hanwha.com
For more information, please contact:
Baker Hughes Media Relations
Chiara Toniato
+39 3463823419
chiara.toniato@bakerhughes.com
Hanwha Power Systems Media Relations
Sung Jae Park
+70 7147 4895
sungjae.park@hanwha.com
Baker Hughes Investor Relations
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com
FAQ
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