Baker Hughes Invests in Bio-methanation Technology Company Electrochaea to Expand Carbon Utilization Portfolio with Power-to-Gas Solution

Rhea-AI Summary

Baker Hughes (NYSE: BKR) has announced a strategic investment in Electrochaea, a company pioneering bio-methanation technology. This investment will bolster Baker Hughes' carbon capture and utilization (CCU) portfolio by enabling the production of low-carbon synthetic natural gas (SNG) from captured CO₂ and green hydrogen. The two firms aim to accelerate technology scale-up and commercialization, potentially transforming CO₂ emissions into clean SNG, thereby advancing the energy transition and offering solutions for hard-to-decarbonize sectors.

Positive

• Baker Hughes acquires approximately 15% stake in Electrochaea, strengthening its position in the CCU market.
• Investment aims to enhance Baker Hughes' technology portfolio, focusing on low-carbon synthetic natural gas (SNG).
• Collaboration expected to decarbonize hard-to-abate sectors, potentially increasing market appeal.

Negative

• None.

Baker Hughes (NYSE: BKR), an energy technology company, has announced an investment in Electrochaea, a growth stage company developing novel proprietary bio-methanation technology. Through its investment, Baker Hughes will enhance its broader carbon capture and utilization (CCU) portfolio and provide an integrated solution for customers across the carbon dioxide (CO₂) value chain to enable the production of low carbon synthetic natural gas (SNG) from captured CO₂ and green hydrogen, helping meet demand for cleaner fuels to advance the energy transition.

The Electrochaea bio-methanation process is an accessible, highly-efficient, scalable and complementary technology to the Baker Hughes CCU portfolio. The two companies will join efforts to accelerate the scale up and industrialization of the technology, and they will develop the commercialization of an innovative integrated carbon capture and utilization solution. Once commercialized, the solution will provide to customers a unique ability to transform CO₂ emissions into clean SNG.

Baker Hughes will draw from its portfolio of carbon capture technologies, including its Compact Carbon Capture design, to provide integrated solutions tailored to specific applications utilizing both CO₂ sources with biogenic origin, such as biomass and waste-to-energy plants, as well as sources based on combustion of fossil fuels, such as industrial plants.

“The combination of these technologies provides an integrated method to decarbonize hard to abate sectors such as road transportation and heating”, said Rod Christie, executive vice president of Turbomachinery & Process Solutions at Baker Hughes. “This agreement is another deliberate step in our strategy to position Baker Hughes for new energy frontiers like CCU by investing in emerging technologies and combining them with our own proven capabilities. Together, we can develop and scale faster, providing integrated solutions that can effectively decarbonize a range of industries.”

“Delivering synthetic natural gas at grid scale would be a remarkable development for energy consumers,” added Mich Hein, CEO of Electrochaea. “By combining Baker Hughes’ carbon capture technology process with biomethanation, customers could potentially deploy large scale plants to reduce the carbon impact of existing gas infrastructure. We look forward to working with Baker Hughes to scale up this promising new solution.”

SNG is methane that originates from a synthesis process that starts from carbon and hydrogen feedstock. Compared to renewable natural gas (RNG) and bio-methane - which have biological origin - or fossil based natural gas, SNG re-utilizes CO₂ that would be otherwise emitted into the atmosphere, thus contributing to significantly mitigating greenhouse gas emissions.

Electrochaea’s technology produces SNG from green hydrogen and CO₂ that can come from a variety of sources, such as biogas, fermentation off-gas or captured from single point emitters such as power and industrial plants. SNG can be used for low-carbon heating, transport and industrial applications. In addition, once SNG is injected into existing natural gas pipelines, it can be used as a form of energy storage.

Along with the lead investor Baker Hughes, the existing investors MVP, Storengy (an ENGIE subsidiary), KfW, Caliza, Focus First, Energie 360°, and btov also participated in Electrocheaea’s latest financing round. Baker Hughes will take an approximately 15% stake in Electrochaea to help advance new project development and commercialization. Baker Hughes will also assume a seat on Electrochaea’s Board of Directors.

About Baker Hughes:

Baker Hughes (NYSE: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and with operations 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 Electrochaea:

Electrochaea delivers a technology to produce renewable methane, a drop-in fuel for natural gas, that can be stored and transported in the existing gas grid. Electrochaea’s patented process addresses the climate challenge by utilizing CO2, producing a renewable fuel, and providing a solution for long-term storage of intermittent renewable energy. The company is planning to deploy its technology with partners to produce more than 15 billion cubic feet per year of renewable SNG by 2025. Industrial-scale pilot plants have operated in the U.S., Switzerland and Denmark. Electrochaea is headquartered in Munich, Germany, with subsidiaries in Denmark and the U.S. Visit us at www.electrochaea.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210628005368/en/

FAQ

What is Baker Hughes' recent investment in Electrochaea about?

Baker Hughes has invested in Electrochaea to enhance its carbon capture and utilization portfolio, focusing on developing technology to produce low-carbon synthetic natural gas from CO₂ and green hydrogen.

How much of a stake did Baker Hughes take in Electrochaea?

Baker Hughes acquired approximately 15% stake in Electrochaea as part of its investment.

What technology does Electrochaea develop?

Electrochaea develops proprietary bio-methanation technology to produce renewable methane, which can be converted into synthetic natural gas.

How will Baker Hughes' investment impact the energy transition?

The investment aims to accelerate the development of integrated carbon capture and utilization solutions, contributing to cleaner fuel production and advancing the energy transition.

Which sectors could benefit from Baker Hughes and Electrochaea's collaboration?

Their collaboration could benefit hard-to-decarbonize sectors such as road transportation and heating by providing low-carbon energy solutions.