Energy giant Shell and energy technology company Baker Hughes announced the launch of a broad collaboration agreement, which will see the companies working together to advance their own net zero commitments, and to explore decarbonization solutions for energy and industrial sectors.

Under the new agreement, Shell will provide power and renewable energy credits for Baker Hughes sites in the U.S., and the companies will also negotiate supply of up to 100 GWh of renewable power for Baker Hughes facilities in Europe, and explore development of on-site solar for a chemical blending plant in Singapore. The companies also agreed to explore other emissions reduction opportunities for Baker Hughes, such as low-carbon transportation and fuel solutions.

The collaboration will also see Shell evaluating low-carbon solutions from Baker Hughes for its LNG fleet, along with the development of digital solutions to accelerate decarbonization across Shell’s global assets and operations.

The companies also agreed to explore opportunities to invest in solutions targeted towards hard to abate energy and industrial sectors.

Lorenzo Simonelli, Baker Hughes chairman and CEO, said:

“Our agreement with Shell is another example of how we are collaborating in new ways to meet net-zero targets for our company and for our customers. The urgency around the energy transition to meet Paris Agreement goals requires collaboration to accelerate actionable steps to reduce emissions in various ways.”

Harry Brekelmans, Projects & Technology director at Shell, added:

“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.”