Innovative Baker Hughes Emissions Abatement Solution Chosen to Reduce Routine Flaring at SOCAR’s Baku Oil Refinery

Rhea-AI Summary

Baker Hughes (NASDAQ: BKR) and SOCAR have signed a contract for an integrated gas recovery and hydrogen sulfide removal system at SOCAR's Heydar Aliyev Oil Refinery in Baku, Azerbaijan. The project aims to reduce downstream flaring and is expected to recover flare gas equivalent to 7 million Nm3 of methane per year, while reducing CO2 emissions by 11,000 tons annually. The recovered gas will be repurposed as fuel within the refinery, improving efficiency and reducing operating costs. The project execution begins immediately with full commissioning targeted within 24 months.

Positive

• Project will recover 7 million Nm3 of methane annually
• CO2 emissions reduction of 11,000 tons per year
• Recovered gas will reduce fuel consumption and operating costs
• Fast project progression from concept to contract in 9 months

Negative

• 24-month implementation timeline before benefits realization

• Baker Hughes to deliver integrated gas recovery and hydrogen sulfide (H₂S) removal system
• Solution expected to recover flare gas equivalent up to 7 million Nm³ of methane per year, and further reduce CO₂ 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 (H₂S) 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 Nm³ of methane per year, and further reduce CO₂ emissions by up to 11,000 tons per year.

Baker Hughes will integrate its innovative gas recovery and H₂S 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 H₂S 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 H₂S 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
chiara.toniato@bakerhughes.com 

Baker Hughes Investor Relations
Chase Mulvehill
+1 346-297-2564
investor.relations@bakerhughes.com   

SOCAR Media Relations
Laman HAJIZADA
+994 508417674
laman.hajizada@socardownstream.az

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5da93f30-dd6f-4ae6-91c5-db3a57f72463

FAQ

What is the expected methane recovery from Baker Hughes' (BKR) new system at SOCAR's refinery?

The system is expected to recover flare gas equivalent to 7 million Nm3 of methane per year.

How much CO2 emissions will Baker Hughes' (BKR) new system reduce at SOCAR's Baku refinery?

The system will reduce CO2 emissions by up to 11,000 tons per year.

When will Baker Hughes (BKR) complete the implementation of the emissions abatement system at SOCAR?

The project execution begins immediately with full commissioning targeted within 24 months.