Baker Hughes and Woodside Energy Announce Collaboration Framework to Develop Small-Scale Decarbonization Solution Utilizing Net Power Platform
Rhea-AI Summary
Baker Hughes (NASDAQ: BKR) and Woodside Energy have announced a joint initiative to develop a lower-carbon power generation technology solution using the Net Power platform. The collaboration, formalized through a Technology Development Agreement (TDA), builds upon their 2022 MoU and aims to create solutions specifically for oil and gas, LNG, and heavy industries.
The Net Power platform utilizes natural gas to generate affordable power while capturing nearly all CO2 emissions. Baker Hughes, as the exclusive provider of the small-scale application, will leverage development and testing from Net Power's La Porte facility and planned utility-scale power plant near Midland, Texas.
The partnership focuses on assessing feasibility and industrial market scalability, with plans to bring additional development partners to tailor the concept for different power generation segments.
Positive
- Exclusive provider rights for BKR in small-scale Net Power applications
- Strategic expansion into decarbonization technology market
- Potential for additional partnership opportunities
Negative
- Technology still in development phase
- Requires significant testing and validation
- Market scalability yet to be proven
Insights
Baker Hughes' collaboration with Woodside Energy marks a strategic advancement in commercializing Net Power's decarbonization technology at smaller scales for oil & gas operations and heavy industries. This Technology Development Agreement (TDA) progresses their 2022 MoU relationship into concrete action specifically targeting captive power generation with inherent carbon capture capabilities.
The technical significance lies in the exclusivity Baker Hughes maintains for small-scale applications of Net Power's platform—a system that generates power from natural gas while capturing nearly all CO2 emissions. This positions BKR as a key technology provider in the growing industrial decarbonization space, especially for facilities requiring dedicated power generation with minimal carbon footprint.
What's particularly noteworthy is the framework's openness to additional development partners, indicating a collaborative ecosystem approach rather than a closed bilateral effort. This suggests BKR is pursuing an industry-standard solution that could see widespread adoption across multiple sectors requiring smaller-scale carbon capture solutions.
The development leverages ongoing work at Net Power's La Porte demonstration facility and upcoming utility-scale plant in Midland, potentially accelerating commercialization timelines through shared technical learnings. While immediate revenue impact is minimal, this positions Baker Hughes in a high-potential growth segment where industrial customers face mounting pressure to reduce emissions while maintaining reliable power generation capabilities.
This partnership represents Baker Hughes' strategic positioning in the energy transition market rather than an immediate revenue driver. The agreement's value lies in BKR's exclusive provider status for small-scale applications of Net Power's technology, creating potential future recurring revenue streams as industrial customers adopt these solutions.
From a competitive standpoint, this collaboration strengthens Baker Hughes' differentiation in the crowded energy technology space. By focusing on smaller applications for specific industries, BKR targets a practical middle ground between maintaining conventional energy operations and achieving meaningful emissions reductions—a pragmatic approach likely to resonate with customers facing both regulatory pressure and operational requirements.
However, investors should note several uncertainties: the agreement contains no disclosed financial terms, provides no commercialization timeline, and depends on successful technology scaling. The economic viability also hinges on carbon pricing evolution and regulatory frameworks that would incentivize adoption.
The TDA builds on Baker Hughes' broader strategy of maintaining relevance in traditional energy while developing lower-carbon alternatives. While not transformative to near-term financials, it enhances BKR's portfolio of transition technologies that could become increasingly valuable as emissions regulations tighten across industrial sectors. The initiative properly balances technological innovation with commercial pragmatism by focusing on applications where customers have clear operational needs.
- Joint initiative to develop a lower carbon power generation technology solution specifically designed for oil and gas, heavy industries and other smaller scale applications
- Collaboration framework focuses on assessing feasibility and scalability of Net Power’s platform and is open to other potential contributors
HOUSTON and LONDON, March 06, 2025 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, and Woodside Energy (ASX: WDS; NYSE: WDS), a leading Australian energy company, announced Thursday a joint initiative to develop a lower carbon power generation technology solution utilizing the Net Power (NSYE: NPWR) platform that is specifically designed for oil and gas (including LNG), heavy industries and other smaller scale applications.
Building on their 2022 Memorandum of Understanding (MoU), which aimed to advance the decarbonization of the natural gas supply chain, Baker Hughes and Woodside have now signed a Technology Development Agreement (TDA), to develop the small-scale Net Power platform. The patented Net Power platform works by utilizing natural gas to generate affordable power while inherently capturing nearly all carbon dioxide (CO2) emissions.
Baker Hughes and Woodside aim to bring other development partners into the program to tailor the concept to the continuously evolving requirements of different captive power generation segments.
Through the TDA, the program will also focus on assessing feasibility and industrial market scalability of Net Power’s platform.
Baker Hughes is the exclusive provider of the small-scale application of the Net Power platform, and the TDA will benefit from the development and testing currently ongoing both at Net Power’s La Porte, Texas, demonstration facility and the company’s planned first utility-scale power plant near Midland, Texas.
“We are excited to continue our collaboration with Baker Hughes and leverage their leading-edge technology and our combined engineering and CCUS capabilities to explore and develop lower-carbon emissions alternative power solutions using Net Power’s platform," said Woodside Executive Vice President Technical and Energy Development Julie Fallon. "This agreement further strengthens our long-standing relationship across the natural gas value chain and our shared journey in the energy transition."
“Baker Hughes is committed to providing innovative solutions that support the decarbonization of the energy and industrial sectors, and we are honored to share this journey with our long-standing customer Woodside Energy,” said Alessandro Bresciani, senior vice president of Climate Technology Solutions at Baker Hughes. “We believe this framework represents the partnerships and collaborations necessary to develop and scale the energy solutions that support decarbonization while also meeting the world’s growing energy demand.”
“Net Power applauds the enhanced collaboration between Woodside and our partner Baker Hughes. This work has the potential to bring our technology platform to a broader array of end markets and applications, complementing our utility-scale program and strategy,” said Danny Rice, chief executive officer of Net Power. “Today’s announcement is a tangible commitment to continue technology innovation and market development for the Net Power platform and to bring ultra-low emissions energy solutions to a power-hungry world.”
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 Woodside Energy
Woodside is a global energy company founded in Australia, providing reliable and affordable energy to help people lead better lives.
For more information, please contact:
Baker Hughes Media Relations
Chiara Toniato
+39 3463823419
chiara.toniato@bakerhughes.com
Woodside Energy Media Relations
Rob Young
+1 281-790-2805
robert.young@woodside.com
Baker Hughes Investor Relations
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com
FAQ
What is the purpose of Baker Hughes and Woodside Energy's new collaboration agreement?
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