MOSCOW (MRC) -- Shell Global Solutions BV and energy technology company Baker Hughes have signed a broad strategic collaboration agreement to accelerate the global energy transition by helping each other achieve their respective commitments for net-zero carbon emissions and advancing solutions to decarbonize energy and industrial sectors, as per Shell's press release.
The memorandum of understanding (MoU) intends to build on the existing relationship between Shell and Baker Hughes in key areas:
- Shell will initially provide selected Baker Hughes US sites with power and renewable energy credits and the companies will negotiate renewable power for Baker Hughes’ sites in Europe and Singapore.
- Shell and Baker Hughes also agreed to broader collaboration to identify other opportunities to accelerate each other’s transition to net-zero carbon emissions by 2050, such as Baker Hughes providing low-carbon technology solutions for Shell’s LNG fleet.
- The two companies will further explore potential opportunities to co-invest and participate in new models to decarbonize energy and industrial sectors.
Harry Brekelmans, Projects & Technology director at Shell, said: “Shell and Baker Hughes both have clear ambitions to decarbonize and have already made progress through technical innovations. I’m proud of the work that has been done so far, and with this new agreement, we are taking it one step further. It will enable us - and our partners - to push the boundaries of what can be achieved and move even closer toward our net-zero targets.”
As a first step in the collaboration, the parties seek to finalize Shell’s supply of certain Baker Hughes US facilities with power and renewable energy credits for a two-year period.
In 2021, Baker Hughes’ global renewable electricity consumption was 22%, and with this agreement, it is expected to grow by 2% to 24% annually.
Shell and Baker Hughes will also negotiate supply of up to 100 GWh of renewable power for Baker Hughes facilities in Europe and explore the development of an on-site solar solution for Baker Hughes’ chemical blending plant in Singapore.
Shell and Baker Hughes will further collaborate to explore additional opportunities to help Baker Hughes accelerate its transition to net-zero carbon equivalent emissions, including Shell providing low-carbon transportation and fuel solutions for Baker Hughes.
In turn, Shell will evaluate opportunities for Baker Hughes to provide low-carbon solutions for Shell’s LNG fleet through technology upgrades and compressor re-bundles. Baker Hughes will also help Shell develop digital solutions to accelerate decarbonization across Shell’s global assets and operations.
In addition to advancing each other’s own emissions reductions, Shell and Baker Hughes will collaborate to explore opportunities to offer solutions for hard to abate industries globally.
As MRC informed earlier, Royal Dutch Shell plans to reduce its refining and chemicals portfolio by more than half, it said in July 2020 without giving a precise timeframe. The move is part of the Anglo-Dutch company's plan to shrink its oil and gas business and expand its renewables and power division to reduce greenhouse gas emissions sharply by 2050.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
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