Facing pressure from shareholders worried about the climate impact of fossil fuel and a plunge in oil and gas prices due to the COVID-19 pandemic, energy companies are seeking to accelerate a portfolio shift towards greener fuels.
Baker Hughes in September said it would continue to downsize its oilfield services and equipment portfolio and put emphasis on the energy transition and technology needed for renewables.
We are positioning our portfolio for new energy frontiers, and we believe there will be strong growth potential of carbon capture for both industrial applications and oil and gas projects.Lorenzo Simonelli, Chief Executive Officer, Baker Hughes
The company expects growth in demand for lower carbon solutions as more companies move to lower their carbon footprints, including by upgrading gas turbines and buying methane monitoring products. Baker Hughes is targeting net-zero carbon emissions by 2050.
Rival Schlumberger SLB.N has also been driving for new technology partnerships and accelerating its New Energy business, which aims to drive more sustainable energy output for its customers.
Baker said the deal for Compact Carbon Capture, which develops technology specializing in carbon capture solutions, includes all intellectual property, personnel and commercial agreements.