Baker Hughes and SOCAR have signed a contract for a gas recovery and H2S removal system to reduce emissions.
Quiver AI Summary
Baker Hughes has signed a contract with SOCAR for an integrated gas recovery and hydrogen sulfide (H2S) removal system to be implemented at SOCAR’s Heydar Aliyev Oil Refinery in Baku, Azerbaijan. This project is expected to recover flare gas equivalent to 7 million Nm3 of methane annually and reduce CO2 emissions by up to 11,000 tons per year. The recovered gas will be utilized as fuel within the refinery, enhancing efficiency and reducing operating costs. The agreement was signed during COP29 and aligns with initiatives to curb routine flaring by 2030. Baker Hughes will integrate its technologies into the refinery’s infrastructure, marking a significant step in emissions abatement and sustainability efforts in the energy sector. The project aims to be fully operational within 24 months.
Potential Positives
- Signing of a contract for an integrated gas recovery and hydrogen sulfide removal system marks a significant milestone in emissions abatement and reflects Baker Hughes' commitment to sustainability.
- The project is expected to recover flare gas equivalent to 7 million Nm3 of methane annually and reduce CO2 emissions by up to 11,000 tons per year, enhancing environmental impact.
- The initiative will improve refinery efficiency by using recovered gas as fuel, leading to reduced fuel consumption and operating costs.
- The rapid progression from concept to contract in nine months highlights Baker Hughes' ability to drive action and deliver value through collaboration with partners.
Potential Negatives
- Signing a contract for emissions reduction technologies may indicate previous environmental challenges and flaring issues at SOCAR's Heydar Aliyev Oil Refinery, suggesting a reactive rather than proactive approach to sustainability.
- The project's success is tied to commitments made under international agreements, which may raise concerns about the company's ability to meet these climate targets without external pressure.
- While the project is aimed at helping SOCAR improve efficiency and reduce emissions, it also underscores the need for significant technological upgrades in their existing infrastructure, which could pose unexpected technical challenges and costs.
- Baker Hughes to deliver integrated gas recovery and hydrogen sulfide (H 2 S) removal system
- Solution expected to recover flare gas equivalent up to 7 million Nm 3 of methane per year, and further reduce CO 2 emissions by up to 11,000 tons per year
- Recovered flare gas will be used as fuel within the refinery, improving efficiency and reducing consumption and operating costs
- Contract signed at COP29 in Baku, Azerbaijan
BAKU, Azerbaijan, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Baker Hughes (NASDAQ: BKR), an energy technology company, and SOCAR announced Thursday the signing of a contract for an integrated gas recovery and hydrogen sulfide (H 2 S) removal system that will significantly reduce downstream flaring at SOCAR’s Heydar Aliyev Oil Refinery in Baku, Azerbaijan. The contract was signed at COP29 in Baku, in the presence of Baker Hughes Chairman and CEO Lorenzo Simonelli and SOCAR President Rovshan Najaf.
Building on the pledges formalized by Azerbaijan’s entry into the Global Methane Pledge and the COP28 presidency’s Oil & Gas Decarbonization Charter (OGDC) , the project is a tangible step toward ending routine flaring by 2030 at SOCAR’s site, using innovative applications of Baker Hughes' existing and field-proven emissions abatement technologies. The project is expected to recover flare gas equivalent up to 7 million Nm 3 of methane per year, and further reduce CO 2 emissions by up to 11,000 tons per year.
Baker Hughes will integrate its innovative gas recovery and H 2 S removal system into the refinery’s existing infrastructure to help abate methane and sulfur – two of the most potent greenhouse gas emissions – and remove hazardous H 2 S from the site. The system will also enable SOCAR to use the recovered gas, which would have previously been flared, as fuel for the refinery. This will reduce overall fuel gas consumption and operating costs at the refinery, creating new opportunities for value enhancement and efficiency gains.
“We must reduce emissions by 45% this decade to put us on the right path to reach net zero by 2050. The industry has an imperative to act now, and we can do it with existing technology solutions that can be deployed today,” said Baker Hughes Chairman and CEO Lorenzo Simonelli. “This award is a testament to our companies’ shared commitment to act on emissions abatement and represents another significant milestone in Baker Hughes’ journey to help customers drive more sustainable and efficient operations.”
“Our collaboration with Baker Hughes reflects SOCAR’s commitment to advancing sustainable operations and reducing emissions across our sites,” said Rovshan Najaf, president of SOCAR. “By launching this project, we are making a tangible impact on emissions abatement and setting a benchmark for environmental responsibility. This initiative aligns with our vision for a cleaner, more efficient energy future, supporting our commitment to climate goals.”
The project's rapid progression from concept to contract in only nine months demonstrates the two companies’ commitment to driving action and highlights the value achieved through close collaboration and early engagement. Project execution will begin immediately, with full commissioning targeted within 24 months.
This integrated gas recovery and H 2 S removal system is part of Baker Hughes’ broad portfolio of emissions abatement solutions capable of improving productivity, efficiency and delivering increased value at scale across customer operations.
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
.
About SOCAR
SOCAR, a global energy company headquartered in Azerbaijan, specializes in the extraction, processing, and distribution of energy resources. As the largest integrated energy enterprise in the South Caucasus region, the company has a significant presence worldwide, underscoring its importance in various international markets.
For more information, please contact:
Baker Hughes Media Relations
Chiara Toniato
+39 3463823419
[email protected]
Baker Hughes Investor Relations
Chase Mulvehill
+1 346-297-2564
[email protected]
SOCAR Media Relations
Laman HAJIZADA
+994 508417674
[email protected]
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5da93f30-dd6f-4ae6-91c5-db3a57f72463
FAQ
What is the purpose of Baker Hughes' new gas recovery system?
The system aims to recover flare gas and remove hydrogen sulfide (H2S), enhancing efficiency and reducing emissions at SOCAR's refinery.
How much methane will the system recover annually?
The integrated system is expected to recover flare gas equivalent to up to 7 million Nm3 of methane each year.
What are the expected CO2 emission reductions?
The project aims to reduce CO2 emissions by up to 11,000 tons per year through innovative emissions abatement technologies.
Where was the contract for this project signed?
The contract was signed at COP29 held in Baku, Azerbaijan, demonstrating a commitment to emissions reduction.
What is the timeline for project completion?
Project execution will begin immediately, with full commissioning targeted within 24 months from the contract signing.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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