Baker Hughes Offshore Wind Strategy, $2 B New Energy Bookings, 300 MW Fervo Geothermal Deal, and 0 Wind Projects (2025)

Offshore Wind Project Risk, Baker Hughes Focuses on Enabling Tech

The 2025 offshore wind market was defined by significant policy-driven volatility in the U.S., compelling major service providers like Baker Hughes to de-risk by avoiding direct project participation and instead focusing on developing and supplying transferable technologies. This strategic pivot allowed the company to sidestep market headwinds while positioning its core competencies for future entry.

US Market Policy Disruption

The US offshore wind sector faced a major disruption in 2025. A presidential memorandum issued on January 20, 2025, temporarily withdrew all Outer Continental Shelf areas from new offshore wind leasing, creating significant uncertainty for project developers and investors. While this pause was later invalidated by a federal court on December 8, 2025, the year-long instability influenced investment decisions and likely reinforced the strategies of service companies to avoid direct project risk. This environment contrasted with the more stable policy frameworks seen in Europe, where companies like RWE and Total Energies continued to advance large-scale projects.

Baker Hughes’ Strategic Pivot

In this volatile environment, Baker Hughes made a conspicuous choice to not announce any direct involvement in offshore wind projects during 2025. Instead, the company concentrated its energy transition efforts on adjacent sectors where its oil and gas expertise offered a more immediate competitive advantage. This is evidenced by a major agreement with geothermal developer Fervo Energy to supply equipment for 300 MW of power and a collaboration with Hanwha to develop ammonia-capable turbines for the maritime industry. This approach suggests a deliberate de-risking strategy, focusing on building a robust portfolio in less policy-sensitive clean energy markets like geothermal and hydrogen.

$2 B in New Energy Orders, Baker Hughes Sidesteps Direct Wind Investment

Baker Hughes reported a record $2 billion in “New Energy” orders for 2025, significantly surpassing its target of $1.4 to $1.6 billion. However, an analysis of the company’s announced commercial agreements reveals that these funds were allocated to geothermal, Carbon Capture, Utilization, and Storage (CCUS), and hydrogen technologies, with no specific capital expenditures or investments directed toward the offshore wind sector.

Record ‘New Energy’ Bookings

The $2 billion in bookings represents a key financial milestone for Baker Hughes’ energy transition business. While the company does not provide a specific breakdown, the public record of its commercial wins in 2025 points toward a strategy of investing in technologies that are synergistic with its existing business lines. This contrasts with the direct project equity strategies pursued by some integrated energy companies like BP, which has invested heavily in offshore wind farm development.

Geothermal and Other Investments

A significant portion of the company’s “New Energy” focus can be seen in its activities in geothermal. Beyond the large equipment agreement with Fervo Energy for its Cape Station project, Baker Hughes is also an investor in geothermal startup Green Fire Energy. This investment supports the development of closed-loop geothermal systems, another area where Baker Hughes’ drilling and subsurface expertise can be directly applied. These actions underscore a disciplined capital allocation strategy focused on markets with clear technological and commercial adjacencies.

Table: Baker Hughes New Energy and Related Investments (2025)

Partnership Strategy, Baker Hughes Targets Geothermal and Hydrogen

Baker Hughes’ 2025 partnerships were concentrated in synergistic energy transition sectors like geothermal, hydrogen/ammonia, and CCUS, conspicuously avoiding new alliances in the offshore wind market. This pattern highlights a strategy of building depth in areas where its technology provides a defensible advantage.

Fervo Energy Geothermal Alliance

The most significant new energy partnership in 2025 was the agreement with Fervo Energy. By supplying integrated technology solutions for a large-scale enhanced geothermal project, Baker Hughes solidified its position as a key equipment provider in a sector that directly utilizes its drilling and power generation expertise. This move allows the company to capitalize on the energy transition without entering the more competitive and volatile wind turbine or project development markets.

Hanwha Ammonia Turbine Partnership

The collaboration with Hanwha, announced in February 2025, aims to develop a gas turbine capable of running on 100% ammonia. While initially targeting maritime and industrial power, this partnership is strategic for Baker Hughes. It leverages its core turbine manufacturing capabilities to address future fuel markets, including green ammonia produced from renewable sources like offshore wind, creating a potential downstream role for the company in the hydrogen economy.

Table: Key Baker Hughes Energy Transition Partnerships (2025)

US vs. Global Markets, Baker Hughes Navigates Regional Volatility

While the global offshore wind market saw continued growth in 2025, significant policy-driven disruption in the United States reinforced Baker Hughes’ cautious, technology-focused approach. The company’s strategy appears tailored to avoid direct exposure to regional investment risks while preparing to serve a global market with enabling technologies.

United States Policy Headwinds

The temporary halt on new federal offshore wind leasing in the U.S. from January to December 2025 created a challenging environment for project developers and their supply chains. This uncertainty likely impacted the strategic calculus for major service companies, making direct capital investment in U.S. offshore wind projects less attractive compared to other, more stable energy transition sectors. Other oil and gas majors like Chevron have also pursued a more technology-and-partnership-focused approach rather than direct development.

Global Growth Trajectory

In contrast to the U.S. slowdown, the global offshore wind market continued its expansion. Total installed capacity reached 83 GW in 2025, with forecasts from agencies like IRENA projecting growth to over 400 GW by 2035. This robust global demand, particularly in Europe and Asia, ensures a long-term market for the types of enabling technologies Baker Hughes is developing, such as subsea infrastructure and digital maintenance solutions, even if the company forgoes direct project participation.

Technology Crossover, Baker Hughes Leverages Subsea and AI Expertise

In 2025, Baker Hughes advanced technologies with clear crossover potential for the offshore wind sector, such as all-electric subsea systems and AI-driven operational tools, without developing products exclusively for wind applications. This approach allows the company to leverage R&D across multiple energy verticals.

All-Electric Subsea Systems

The launch of its all-electric subsea production system in February 2025 was a key technological milestone. This system, designed to reduce the carbon footprint and complexity of offshore operations, is directly applicable to large-scale offshore wind farms. These projects require reliable subsea power distribution and control systems to manage energy flow from turbines to shore, representing a clear future market for this technology.

AI and Digital Solutions

Baker Hughes’ collaboration to integrate its Cordant solutions with Microsoft’s Azure AI Foundry is another example of developing transferable capabilities. The goal of using AI to optimize operations, improve predictive maintenance, and enhance safety is critical for managing vast, remote assets like offshore wind farms. This positions Baker Hughes to compete as a high-tech service provider for offshore wind operators, a strategy similar to Exxon Mobil’s focus on providing specialized lubricants and services to the wind industry.

SWOT Analysis for Baker Hughes’ 2025 Offshore Wind Strategy

Baker Hughes’ 2025 strategy demonstrates a clear strength in leveraging existing oil and gas expertise for adjacent energy markets but reveals a potential opportunity cost by not establishing an early foothold in the rapidly growing offshore wind supply chain.

Table: SWOT Analysis for Baker Hughes’ 2025 Offshore Wind Initiatives

Scenario Modelling, Baker Hughes’ Entry Points into Offshore Wind

The most critical indicator to watch for Baker Hughes’ future in offshore wind is the commercialization of its transferable technologies, particularly as the U.S. policy environment shows signs of stabilization and global projects demand more sophisticated subsea and digital solutions.

If US Policy Stabilizes

Following the federal court’s decision to invalidate the leasing pause in December 2025, the U.S. market may become more attractive. If this stability holds, watch for Baker Hughes to potentially bid on subsea infrastructure or digital twin contracts for major U.S. projects. A successful bid would signal a formal entry into the regional supply chain.

If Technology Crossover Proves Viable

A key signal will be the first deployment of Baker Hughes’ recently launched all-electric subsea system or its Cordant AI solutions within an offshore wind farm context, most likely in the more mature European market. Securing a contract for these technologies from a major wind developer would validate its crossover strategy and establish a new revenue stream.

If Green Hydrogen Matures

As interest grows in pairing offshore wind with green hydrogen production, watch for Baker Hughes to form partnerships in this hybrid segment. The company is well-positioned to contribute its expertise in both subsea infrastructure and hydrogen-ready technologies, such as the ammonia turbines being developed with Hanwha.

The questions your competitors are already asking

This report covers one angle of Baker Hughes’ energy transition strategy. The questions that matter most depend on your work.

• US enhanced geothermal project pipeline
• Ammonia as marine fuel commercial viability
• Schlumberger energy transition investments
• Offshore wind subsea equipment suppliers

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