Baker Hughes and Hydrostor Deepen Strategic Collaboration to Advance Reliable, Resilient and Sustainable Power Systems

Rhea-AI Summary

Baker Hughes (NASDAQ: BKR) and Hydrostor announced a strategic technology and equity agreement on January 28, 2026, expanding a relationship that began in 2019. Baker Hughes will integrate equipment into Hydrostor’s A-CAES design and may supply up to 1.4 GW of power generation and compression technology for flagship projects.

The deal supports Hydrostor’s move toward construction on flagship projects and aims to accelerate long-duration energy storage deployment to improve grid reliability and resilience.

Positive

• Up to 1.4 GW of Baker Hughes equipment orders
• Expanded strategic equity relationship since 2019
• Integration of Baker Hughes compression, expander, motor and generator technology

Negative

• None.

Key Figures

Equipment orders potential: up to 1.4 GW

1 metrics

Equipment orders potential up to 1.4 GW Baker Hughes power generation and compression technology for Hydrostor flagship projects

Market Reality Check

Price: $56.52 Vol: Volume 11,600,918 vs 20-d...

normal vol

$56.52 Last Close

Volume Volume 11,600,918 vs 20-day average 9,332,330 (relative volume 1.24) indicates elevated trading activity ahead of this partnership news. normal

Technical Shares at $56.53 were trading above the 200-day MA of $43.97 and within 1.83% of the 52-week high, reflecting a strong pre-news trend.

Peers on Argus

BKR was modestly higher by 0.37% while key peers were mixed: SLB +0.74%, FTI +1....

BKR was modestly higher by 0.37% while key peers were mixed: SLB +0.74%, FTI +1.50%, TS +0.81%, NOV +0.91%, and HAL -0.35%. With peer_momentum scanners showing no sector-wide move, this collaboration appears more company-specific than part of a broad industry rotation.

Previous Partnership Reports

3 past events · Latest: Jan 02 (Positive)

Same Type Pattern 3 events

Date	Event	Sentiment	Move	Catalyst
Jan 02	JV partnership	Positive	+3.5%	Surface pressure control joint venture with Cactus delivering $344.5M cash proceeds.
Mar 03	CCS partnership	Positive	-2.2%	Frontier Infrastructure CCS and power partnership tied to data center, storage projects.
Feb 03	Tech collaboration	Positive	+2.6%	Joint development with Hanwha for small-size ammonia turbines for multiple applications.

Pattern Detected

Partnership announcements have generally been received positively, with two out of three prior deals producing gains above 2.5%, but one notable negative reaction highlights that outcomes are not uniformly favorable.

Recent Company History

Recent history shows Baker Hughes using partnerships and portfolio actions to reposition toward higher-return and low-carbon opportunities. The January 2026 joint venture with Cactus generated $344.5M in cash proceeds and saw a 3.51% gain. Earlier collaborations in 2025 with Frontier Infrastructure (CCS and data center projects, move -2.22%) and Hanwha on ammonia turbines (move +2.64%) focused on decarbonization technologies. Today’s Hydrostor agreement fits this pattern of leveraging Baker Hughes’ technology in energy transition partnerships.

Historical Comparison

partnership

+2.8 %

Average Historical Move

Historical Analysis

In the past year, BKR disclosed 3 partnership deals with an average move of 2.79%. This Hydrostor collaboration extends the same strategy of technology-focused, energy-transition agreements.

Typical Pattern

Partnerships have progressed from ammonia turbines and CCS infrastructure toward broader low-carbon and grid-resilience solutions, positioning Baker Hughes’ technology in emerging clean energy and storage applications.

Market Pulse Summary

This announcement expands Baker Hughes’ role in long-duration energy storage through a deeper collab...

Analysis

This announcement expands Baker Hughes’ role in long-duration energy storage through a deeper collaboration with Hydrostor, including up to 1.4 GW of potential equipment orders. It complements prior partnerships in ammonia turbines and carbon capture, underscoring a consistent focus on energy-transition technologies. Investors may track how these projects convert into firm orders, construction milestones on U.S. and Australian flagship sites, and any subsequent updates on pipeline expansion tied to growing AI data center power needs.

Key Terms

equity investment, long duration energy storage, LDES, advanced compressed air energy storage

4 terms

equity investment financial

"Collaboration includes an equity investment and up to 1.4 GW of power..."

An equity investment is buying ownership in a company by purchasing its shares, which gives you a claim on future profits and a portion of the company's value. It matters to investors because returns depend on the company’s growth and performance—like owning a slice of a pie that can grow or shrink—so you can gain through rising share prices or dividends but also risk losing value if the business falters.

long duration energy storage technical

"Hydrostor, a leading global long duration energy storage (LDES) developer..."

Long duration energy storage is a way to save large amounts of electricity for many hours, days, or even weeks and release it when the grid needs power, like a giant household battery or water tank for the electric system. It matters to investors because it helps make wind and solar more reliable, cuts the need for expensive backup plants, and creates steady income opportunities from selling stored energy, grid services, or capacity contracts, so it can materially change project economics and long‑term returns.

LDES technical

"Hydrostor, a leading global long duration energy storage (LDES) developer..."

Long-duration energy storage (LDES) describes technologies that store large amounts of electricity for many hours to days, not just minutes, allowing power to be shifted from times of surplus to times of need. For investors it matters because LDES can unlock greater use of renewable energy, reduce the risk of blackouts, create new revenue streams for utilities and storage companies, and influence long-term capital and policy decisions in the energy sector.

advanced compressed air energy storage technical

"core design offering for its advanced compressed air energy storage (A-CAES) solution."

A system that stores electricity by compressing air into underground caverns or tanks and later releases the pressurized air to drive turbines and make electricity, like a giant rechargeable pressure tank. Advanced designs capture and reuse the heat generated during compression or pair with renewable sources to boost efficiency and reduce losses. Investors care because it provides long-duration, low-cost grid storage that can earn revenue by shifting energy to peak hours, backing up renewables, and taking part in capacity and ancillary service markets.

AI-generated analysis. Not financial advice.

• Collaboration includes an equity investment and up to 1.4 GW of power generation and compression technology orders for Hydrostor’s flagship projects
  

FLORENCE, Italy and DENVER, Colo., Jan. 28, 2026 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, and Hydrostor, a leading global long duration energy storage (LDES) developer and operator, announced Wednesday a strategic technology solutions and equity agreement. Baker Hughes will deepen its relationship with Hydrostor, integrating Baker Hughes’ technology capabilities as part of Hydrostor’s core design offering for its advanced compressed air energy storage (A-CAES) solution. This includes up to 1.4 GW of Baker Hughes equipment orders for Hydrostor’s flagship projects. The announcement was made at the 2026 Baker Hughes Annual Meeting in Florence.

"Increasing pressure on electric grids is making long-duration energy storage an urgent priority. Hydrostor's innovative approach offers a low-carbon solution to ensure power reliability across a diverse mix of generation resources," said Lorenzo Simonelli, chairman and CEO of Baker Hughes. “We are proud to support Hydrostor with critical technology to accelerate these projects, supporting greater global grid resilience, and enabling sustainable power systems at scale.”

“The agreement Hydrostor has signed with Baker Hughes underscores the momentum behind our A-CAES technology platform that is able to cost-effectively provide reliability and resiliency to grids around the world,” said Curtis VanWalleghem, cofounder and CEO. “We’re excited to build on our relationship with Baker Hughes as we near construction for our flagship projects and work to expand our project pipeline, as load grows and AI data center infrastructure is being built out globally.”

Baker Hughes has been an investor in Hydrostor since 2019. This latest strategic agreement marks an expansion of the relationship as Hydrostor nears construction on its flagship projects in the U.S. and Australia. In the initial phase of the expansion, Hydrostor will be deploying up to 1.4 GW of power generation and compression technology solutions from Baker Hughes’ extensive portfolio including compression, expander, motor and generator technology.

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 Hydrostor Inc.         
Hydrostor is a leading developer and operator of long duration energy storage systems, leveraging a proven, patented technology solution for delivering long duration energy storage to power grids around the world, using compressed air and water to store energy.

Founded in 2010 and with headquarters in Toronto, Canada, and offices in Melbourne, Australia, and Denver, USA, Hydrostor is backed by Goldman Sachs Alternatives, CPP Investments, Canada Growth Fund, and other forward-thinking institutional investors, providing financial security to commit to top-tier energy projects. Hydrostor has an extensive pipeline of A-CAES projects in North America, Australia, and Europe, poised to meet evolving grid and reliability needs.

Follow us on LinkedIn.
  
To learn more, visit https://www.hydrostor.ca/.

Advisors

Goldman Sachs & Co. LLC, National Bank Capital Markets, and Rothschild & Co. acted as financial advisors to Hydrostor.

FAQ

What did Baker Hughes (BKR) announce about Hydrostor on January 28, 2026?

They announced a strategic technology and equity agreement to deepen collaboration. According to Baker Hughes, the deal integrates Baker Hughes equipment into Hydrostor’s A-CAES core design and supports Hydrostor’s flagship projects as they near construction.

How much equipment capacity will Baker Hughes potentially supply to Hydrostor (BKR)?

Baker Hughes may supply up to 1.4 GW of equipment to Hydrostor. According to Baker Hughes, that includes power generation and compression technology for Hydrostor’s flagship projects to support long-duration energy storage deployment.

What technologies will Baker Hughes provide for Hydrostor under the BKR agreement?

Baker Hughes will provide compression, expander, motor and generator technology integrated into A-CAES systems. According to Baker Hughes, these technologies form part of Hydrostor’s core design offering for its advanced compressed air energy storage.

Does the Baker Hughes and Hydrostor (BKR) agreement include an equity investment?

Yes, the agreement includes an equity component alongside technology collaboration. According to Baker Hughes, the expanded strategic agreement deepens Baker Hughes’ investor relationship that began with Hydrostor in 2019.

What is the expected near-term impact of the Baker Hughes (BKR) deal on Hydrostor projects?

The deal aims to accelerate construction readiness for flagship projects and expand Hydrostor’s pipeline. According to Baker Hughes, integrating its equipment is intended to enhance grid reliability and scale sustainable power systems.