For Illustration only; Image Credit: Baker Hughes (File Photo)
Baker Hughes Co said on Tuesday it would buy Compact Carbon Capture AS in a bid to expand its footprint beyond oil and gas oilfield services as it prepares for a transition to a low-carbon future.
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," Chief Executive Officer Lorenzo Simonelli said in a statement on Tuesday.
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 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.
(Reporting by Arunima Kumar in Bengaluru; Editing by Amy Caren Daniel)
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