- Eight-year power purchase agreement will help to achieve a reduction of 6.8 Kilotonnes of CO2 equivalent per year, in line with the EU's long-term climate action 2050 strategy
- Agreement follows companies' 2021 memorandum of understanding to help Baker Hughes to meet 2030 target to reduce operational emissions by 50%
- The two companies also agreed on measures to preserve and enhance biodiversity
FLORENCE, September 20, 2023 - Baker Hughes, an energy technology company, announced Wednesday a new agreement with Shell Energy Italia - an eight-year-long power purchase agreement (PPA) that will see Shell Energy Italia supply seven of Baker Hughes' Industrial & Energy Technology (IET) Italian facilities with renewable energy, sourced from Shell's solar photovoltaic farm currently under construction in the Apulia region, in southern Italy.
The agreement aims to achieve a reduction of 6.8 Kilotonnes (Kton) of CO2 equivalent (CO2e) per year across the sites, resulting in 13% less emissions - equivalent to 1,200 fewer light duty gasoline cars on the road per year.
The announcement follows a memorandum of understanding (MoU) signed in 2021 to enhance collaboration between the two companies as they seek to achieve respective commitments for emissions reduction through advancing technology solutions that help to decarbonize the energy and industrial sectors.
"Today's announcement marks a significant milestone both in Italy and globally. We're working together with Shell to invest in vital renewable energy projects that will support both the decarbonization of our manufacturing facilities and create a cleaner, more sustainable energy system for the country," said Davide Marrani, vice president of operations, Industrial & Energy Technology at Baker Hughes. "This agreement sets us on the right path to achieving our commitment to reduce our CO2 emissions by 50 percent by 2030 and achieve net-zero emissions by 2050."
"Shell Energy Italia is a major energy supplier, capable of responding to market demands by offering advanced energy commodity management solutions to over 700 major industrial customers," said Gianluca Formenti, CEO of Shell Energy Italia. "The supply contract signed with Baker Hughes for the Zamboni plant is a tangible confirmation of our ability to create a direct link between our production and demand for energy from renewable sources positioning us as an integrated energy company."
Sustainable progress is a major catalyst of the agreement, and several measures were implemented to protect and enhance local biodiversity where the new solar plant will be built, including restoration of a hitherto uncultivated area; designing structures for spawning and ecological corridors of native plant species to attract nesting sedentary birds and pollinating insects, and improve the health and quality of the soil.
The PPA complements a previous agreement Baker Hughes signed in 2019 to cover energy needs of its Texas facilities, as well as several other on-site renewable solutions, including the installation of solar across several Italian sites.
Baker Hughes' 2022 corporate sustainability report showed a 28% reduction in greenhouse gas emissions by its operating facilities in Scope 1 and 2 because of energy efficiency initiatives, which puts it on track to achieving the company's net-zero commitments by 2050.
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.
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Rendering of the renewable facility. Credit: Shell Energy Italia
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Spokesperson: Baker Hughes
SOURCE: Baker Hughes
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