Innovative Baker Hughes Emissions Abatement Solution Chosen to Reduce Routine Flaring at SOCAR’s Baku Oil Refinery
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.
Baker Hughes (NASDAQ: BKR) e SOCAR hanno firmato un contratto per un sistema integrato di recupero del gas e rimozione dell'idrogeno solforato presso la raffineria di petrolio Heydar Aliyev di SOCAR a Baku, in Azerbaijan. Il progetto mira a ridurre le torce a valle e ci si aspetta che recuperi gas di torcia equivalente a 7 milioni di Nm3 di metano all'anno, riducendo le emissioni di CO2 di 11.000 tonnellate all'anno. Il gas recuperato sarà riutilizzato come combustibile all'interno della raffineria, migliorando l'efficienza e riducendo i costi operativi. L'esecuzione del progetto inizia immediatamente con un obiettivo di messa in servizio completo entro 24 mesi.
Baker Hughes (NASDAQ: BKR) y SOCAR han firmado un contrato para un sistema integrado de recuperación de gas y eliminación de sulfuro de hidrógeno en la refinería de petróleo Heydar Aliyev de SOCAR en Bakú, Azerbaiyán. El proyecto tiene como objetivo reducir la quema a valle y se espera que recupere gas de antorcha equivalente a 7 millones de Nm3 de metano al año, al tiempo que reduce las emisiones de CO2 en 11.000 toneladas anuales. El gas recuperado será reutilizado como combustible dentro de la refinería, mejorando la eficiencia y reduciendo los costos operativos. La ejecución del proyecto comienza de inmediato, con una puesta en marcha completa prevista en un plazo de 24 meses.
베이커 휴스(Baker Hughes, NASDAQ: BKR)와 SOCAR는 아제르바이잔 바쿠에 있는 SOCAR의 헤이다르 알리예프 석유 정제소에서 통합 가스 회수 및 황화수소 제거 시스템에 대한 계약을 체결했습니다. 이 프로젝트는 하류 플레어링을 줄이는 것을 목표로 하며, 연간 700만 Nm3의 메탄에 해당하는 플레어 가스를 회수할 것으로 예상되며, CO2 배출량을 연간 11,000톤 줄이는 것을 목표로 합니다. 회수된 가스는 정제소 내에서 연료로 재사용되어 효율성을 높이고 운영 비용을 낮출 것입니다. 프로젝트 실행은 즉시 시작되며, 24개월 이내에 완전 가동을 목표로 하고 있습니다.
Baker Hughes (NASDAQ: BKR) et SOCAR ont signé un contrat pour un système intégré de récupération de gaz et d'élimination de l'hydrogène sulfuré à la raffinerie de pétrole Heydar Aliyev de SOCAR à Bakou, en Azerbaïdjan. Le projet vise à réduire les torchages en aval et devrait récupérer un gaz de torchage équivalent à 7 millions de Nm3 de méthane par an, tout en réduisant les émissions de CO2 de 11.000 tonnes par an. Le gaz récupéré sera réutilisé comme combustible au sein de la raffinerie, améliorant ainsi l'efficacité et réduisant les coûts opérationnels. L'exécution du projet commence immédiatement, avec une mise en service complète prévue dans un délai de 24 mois.
Baker Hughes (NASDAQ: BKR) und SOCAR haben einen Vertrag für ein integriertes Gasrückgewinnungs- und Wasserstoffschwefelentfernungssystem in der Heydar-Aliyev-Ölraffinerie von SOCAR in Baku, Aserbaidschan, unterzeichnet. Das Projekt zielt darauf ab, die Abfackelung im Downstream zu reduzieren und es wird erwartet, dass es Fackelgas, das 7 Millionen Nm3 Methan pro Jahr entspricht, zurückgewinnt, während die CO2-Emissionen um 11.000 Tonnen jährlich gesenkt werden. Das zurückgewonnene Gas wird innerhalb der Raffinerie als Brennstoff wiederverwendet, was die Effizienz verbessert und die Betriebskosten senkt. Die Projektumsetzung beginnt sofort, mit einer vollständigen Inbetriebnahme, die in 24 Monaten angestrebt wird.
- 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
- 24-month implementation timeline before benefits realization
Insights
This significant emissions reduction contract with SOCAR represents both environmental and economic value. The integrated system will recover
- Recovery of 7 million Nm3 of methane annually
- Reduction of 11,000 tons of CO2 emissions per year
- Conversion of waste gas into usable fuel for refinery operations
This contract marks a strategic win for Baker Hughes in the critical downstream emissions control market. The project's implementation at SOCAR's major Baku refinery establishes an important reference case for similar installations globally. The dual benefit of emissions reduction and fuel cost savings makes this solution particularly attractive as refineries worldwide face increasing pressure to reduce their environmental impact while maintaining profitability. The timing aligns with Azerbaijan's recent Global Methane Pledge commitment, suggesting potential for follow-on contracts in the region. For investors, this demonstrates Baker Hughes' ability to monetize its emissions reduction technology portfolio and capture market share in the growing environmental solutions segment.
- 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
“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?
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