Baker Hughes CCUS Strategy 2025: Analyzing the Pivot to Carbon Capture Dominance
Baker Hughes CCUS Projects 2025: From Pilots to Commercial Scale Deployment
Baker Hughes has transitioned its carbon capture, utilization, and storage (CCUS) strategy from technology development and early-stage partnerships to securing large-scale, commercial-grade projects in 2025. This strategic shift is defined by the deployment of its technology in major international decarbonization hubs and the acquisition of a comprehensive hardware portfolio to support a record backlog. The company now provides integrated solutions across the entire CCUS value chain, from capture and compression to transportation and storage.
- Between 2021 and 2024, Baker Hughes focused on building its CCUS toolkit through strategic actions, including licensing advanced solvent technology (Mixed Salt Process), investing in novel power cycles with inherent carbon capture (NET Power), and piloting emerging technologies like Direct Air Capture (Mosaic DAC) with partners such as HIF Global. This period was characterized by foundational agreements and technology validation, such as the MoU with Horisont Energi for the Polaris carbon storage project.
- The year 2025 marked a definitive move to commercial execution, underscored by a series of major contract awards. Baker Hughes secured a contract to supply advanced CO₂ centrifugal compressor trains for the Saipem/Eni Liverpool Bay CCUS project in the UK, a key European decarbonization initiative. This builds on its role as the technology provider for the PETRONAS Kasawari project in Malaysia, one of the world’s largest offshore CCS facilities.
- The company’s technology is also integral to blue hydrogen and ammonia production, which requires integrated CCUS. In October 2025, it was selected to supply critical compression technology for CO₂ transportation at the Blue Point Number One project, the world’s largest low-carbon ammonia plant. This demonstrates the cross-selling of its CCUS capabilities into adjacent clean energy markets.
- The strategic pivot was cemented by the landmark $13.6 billion acquisition of Chart Industries announced in July 2025. This move provides Baker Hughes with an extensive portfolio of commercially ready liquefaction, cryogenic, and compression hardware, resolving previous portfolio gaps and positioning it to deliver on its growing backlog of large-scale CCUS and LNG projects.
Baker Hughes CCUS & Energy Transition Investment Analysis 2025
Baker Hughes is fueling its expansion into CCUS and the broader energy transition with a dual-pronged investment strategy combining a transformational multi-billion-dollar acquisition with targeted capital injections into core technology and R&D.
Table: Baker Hughes Energy Transition Investments (2021-2025)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Acquisition of Chart Industries | July 2025 | A $13.6 billion all-cash acquisition to create a comprehensive technology provider for LNG, hydrogen, and CCUS. The deal positions Baker Hughes to control critical hardware supply chains. | Baker Hughes’ $13.6B Acquisition |
| Manufacturing & R&D Expansion | September 2025 | A planned €300 million investment over five years to expand manufacturing capacity and R&D for energy transition technologies, including turbine compressors for CO₂ applications, at its Italian facilities. | Baker Hughes to Invest Nearly €300mn |
| Elcogen | April 2024 | A strategic investment in a European solid oxide technology manufacturer to scale solutions for green hydrogen production, a key component of the broader decarbonization ecosystem alongside CCUS. | Baker Hughes backs European clean energy tech |
| Zhero Europe | August 2023 | An investment alongside partners to advance a portfolio of green energy production and infrastructure projects, creating future demand for CCUS and hydrogen technologies. | TotalEnergies, Baker Hughes…Invest |
| Baseload Capital | June 2023 | A second strategic investment to accelerate the deployment of geothermal heat and power projects, diversifying its clean energy portfolio beyond CCUS. | Baker Hughes and Baseload Capital Announce Investment |
| NET Power | February 2022 | Investment to help commercialize a novel power generation system that inherently captures all CO₂ emissions, directly aligning with the company’s CCUS technology goals. | Baker Hughes invests in NET Power |
| FiveT Hydrogen Fund | April 2021 | Became a cornerstone investor in a €1 billion fund dedicated to clean hydrogen infrastructure projects, establishing an early position in the hydrogen value chain. | Plug Power, Chart Industries and Baker Hughes announce… |
Baker Hughes Strategic CCUS Partnerships: A 2025 Breakdown
Baker Hughes utilizes strategic partnerships to secure market access, co-develop technology, and integrate its CCUS solutions into large-scale energy projects globally.
Table: Baker Hughes CCUS & Energy Transition Partnerships (2021-2025)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| PETRONAS | July 2025 | An MoU to explore strategic collaborations in the Asia-Pacific region, with a specific focus on developing CCUS technologies and enhancing LNG services. | Baker Hughes, PETRONAS Collaborate |
| Woodside Energy | March 2025 | A Technology Development Agreement to create small-scale decarbonization solutions for industrial use by leveraging Net Power’s innovative carbon capture platform. | Baker Hughes and Woodside Energy Announce… |
| Frontier Infrastructure | March 2025 | A strategic partnership to accelerate large-scale power generation and Carbon Capture and Storage (CCS) projects, with Baker Hughes supplying CO₂ compression and well design technology. | Baker Hughes, Frontier Infrastructure Partner |
| University of California, Berkeley | December 2024 | Established a global decarbonization center to fund collaborative research on next-generation materials for hydrogen and carbon capture applications, securing a future technology pipeline. | Baker Hughes and UC Berkeley Establish… |
| HIF Global | March 2023 | A collaboration to test and pilot Baker Hughes’ Mosaic Direct Air Capture (DAC) technology for use in HIF’s eFuels facilities, providing a validation pathway for a key capture technology. | Baker Hughes and HIF Global to Collaborate |
| ADNOC | May 2023 | An agreement to accelerate the development and commercialization of low-carbon hydrogen and CCUS solutions, strengthening its position in the Middle East energy transition market. | ADNOC and Baker Hughes Collaborate |
| Shell | November 2021 | A broad strategic collaboration to develop solutions for decarbonizing energy sectors, with a joint focus on hydrogen, CCUS, and integrated digital technologies. | Baker Hughes and Shell Sign Collaboration |
| Horisont Energi | March 2021 | An MoU to explore technology integration for the Polaris carbon storage project offshore Norway, an early move to engage with large European decarbonization hubs. | Baker Hughes and Horisont Energi Sign MoU |
Baker Hughes CCUS Global Footprint: Europe and North America Emerge as Core Growth Regions
Baker Hughes’ CCUS activities are geographically concentrated in North America and Europe, where regulatory support and project density have driven a shift from early-stage agreements to tangible project execution and investment. While Asia represents a significant market with a landmark project, the bulk of recent strategic activity reinforces the company’s focus on these two core regions.
- In the 2021-2024 period, Europe was a hub for foundational partnerships and technology trials. This included the MoU with Horisont Energi for the Polaris CCS project in Norway and the successful trial of a hydrogen-blend turbine with Snam in Italy, laying the groundwork for decarbonizing regional gas infrastructure.
- The year 2025 saw this European focus translate into major commercial wins and capital commitment. Baker Hughes secured the contract for the Saipem/Eni Liverpool Bay CCUS project in the UK and committed €300 million to expand its manufacturing and R&D facilities in Italy, solidifying its role as a key technology supplier for the continent’s decarbonization goals.
- North America has rapidly evolved into a primary growth market, moving from initial technology deployments to large-scale, integrated project agreements. The partnership with Frontier Infrastructure announced in March 2025 is aimed at developing large-scale CCS and power generation projects in the U.S. Mountain West, while the technology supply for the Blue Point Number One ammonia plant confirms its role in the U.S. Gulf Coast clean energy build-out.
- Asia remains a critical market, validated by the major contract award for PETRONAS’ Kasawari offshore CCS project in Malaysia. The 2025 MoU with PETRONAS to develop further CCUS opportunities indicates a long-term strategic interest in the Asia-Pacific region’s energy transition.
Baker Hughes CCUS Technology Maturity: From R&D to Commercial Deployment in 2025
Baker Hughes has systematically matured its CCUS technology portfolio, progressing from R&D and pilot-scale testing to full commercial deployment in globally significant projects. This evolution is marked by the successful application of its core compression technologies and the strategic acquisition of complementary hardware, creating a comprehensive, market-ready offering.
- The period between 2021 and 2024 was defined by building a diverse technology toolkit. Baker Hughes licensed the Mixed Salt Process for efficient solvent-based capture, invested in NET Power’s novel zero-emission power cycle, and initiated pilot testing of its Mosaic DAC technology with HIF Global. These moves were designed to establish capabilities across multiple carbon capture pathways.
- By 2025, the focus shifted to commercial validation through large-scale project execution. The selection of Baker Hughes’ advanced CO₂ centrifugal compressor trains for the Liverpool Bay CCUS project and its critical compression technology for the Blue Point Number One plant provides clear validation of its turbomachinery for demanding, high-volume CO₂ applications.
- The launch of the CarbonEdge digital solution signals a move towards full lifecycle support for CCUS assets. This software platform, designed to optimize project design and manage operational risks, demonstrates a level of maturity that extends beyond hardware to include integrated digital services for the CCUS industry.
- The planned $13.6 billion acquisition of Chart Industries in 2025 is the final piece, providing a full suite of commercially proven cryogenic and liquefaction technologies essential for CO₂ handling and transport. This move transforms Baker Hughes from a component supplier into an integrated technology provider capable of delivering on its record backlog.
SWOT Analysis: Baker Hughes’ CCUS Strategy Evolution (2021-2025)
Table: SWOT Analysis of Baker Hughes’ CCUS Strategic Shift
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Deep expertise in turbomachinery and subsurface characterization. Broad R&D partnerships with energy majors like Shell and ADNOC. | Proven commercial wins on major CCUS projects (Kasawari, Liverpool Bay). An integrated technology portfolio via the Chart Industries acquisition. A record Industrial & Energy Technology (IET) backlog of $32.1 billion. | The company’s core engineering strength was validated through major commercial contracts, and portfolio gaps in cryogenic hardware were filled through a large-scale acquisition. |
| Weaknesses | Portfolio gaps in specific CCUS hardware like cryogenics. Reliance on external partnerships and investments for access to novel capture technologies like NET Power and Mosaic DAC. | Immense operational and financial pressure to integrate the $13.6 billion Chart Industries acquisition. Significant execution risk associated with delivering a multi-billion-dollar project pipeline simultaneously. | Strategic portfolio weaknesses were addressed through acquisition, but this introduced significant integration and execution risk, shifting the primary challenge from technology access to operational delivery. |
| Opportunities | A nascent but rapidly growing global market for CCUS, supported by government incentives. Ability to leverage existing customer relationships in the oil and gas sector. | Achieving market dominance as a key technology supplier for LNG, CCUS, and hydrogen value chains. Ambitious “Horizon 2” target to secure $40 billion in new energy orders by 2028. | The company’s ambition evolved from participating in the CCUS market to leading it, with a clear financial target and a comprehensive portfolio to capture a significant share of global decarbonization spending. |
| Threats | Slow pace of final investment decisions (FIDs) for large-scale CCUS projects. Technology competition from peers like SLB, particularly in digital solutions for carbon storage. | Market volatility affecting project timelines and profitability. Competitors making aggressive, large-scale investments, such as Linde’s $1.8 billion blue hydrogen facility. | The primary external threat has shifted from uncertain market development to intense competition and the operational challenge of executing projects in a volatile, high-stakes environment. |
Outlook for Baker Hughes CCUS: Execution and Integration are Crucial for 2026
The critical factor for Baker Hughes’ future success in CCUS and the broader energy transition is its ability to successfully integrate Chart Industries and execute its record backlog of complex, large-scale projects. The strategic acquisitions and partnerships are now in place; the focus must shift entirely to operational delivery and realizing the promised synergies to justify its significant investments and solidify its market leadership.
- The most significant milestone to watch is the closing and subsequent integration of the $13.6 billion Chart Industries acquisition, expected by mid-2026. The company’s ability to merge product portfolios and corporate cultures will determine its capacity to capitalize on the integrated LNG, hydrogen, and CCUS value chains it has assembled.
- Progress towards the ambitious “Horizon 2” target of securing $40 billion in new energy technology orders by 2028 will be the key performance indicator of its strategy’s success. Quarterly order intake for the Industrial & Energy Technology (IET) segment will be closely monitored by investors as a measure of market penetration.
- The company’s financial performance is now directly linked to its energy transition strategy. Achieving the full-year 2025 revenue guidance of $12.8 billion to $13.3 billion for the IET segment is essential for maintaining investor confidence and funding future growth.
- Translating agreements into revenue through final investment decisions (FIDs) on major projects is crucial. The progression of ventures like the Rio Grande LNG Expansion**, which has associated decarbonization needs, will be a vital signal of future revenue growth and the conversion of the project pipeline into tangible results.
Frequently Asked Questions
What was the main change in Baker Hughes’ CCUS strategy in 2025?
In 2025, Baker Hughes pivoted its CCUS strategy from a focus on technology development and early-stage partnerships (2021-2024) to securing and executing large-scale, commercial-grade projects. This strategic shift is highlighted by major contract wins for projects like Saipem/Eni Liverpool Bay and PETRONAS Kasawari, marking a move from pilot programs to full commercial deployment.
Why did Baker Hughes acquire Chart Industries and for how much?
Baker Hughes announced the acquisition of Chart Industries in July 2025 for $13.6 billion. The purpose of this landmark deal was to acquire a comprehensive portfolio of commercially ready liquefaction, cryogenic, and compression hardware, resolving previous portfolio gaps and positioning Baker Hughes as an integrated technology provider for LNG, hydrogen, and CCUS projects.
What are some of Baker Hughes’ key commercial CCUS projects mentioned in 2025?
Key commercial projects in 2025 include supplying advanced CO₂ centrifugal compressor trains for the Saipem/Eni Liverpool Bay CCUS project in the UK, providing technology for the PETRONAS Kasawari offshore CCS facility in Malaysia, and supplying critical compression technology for the Blue Point Number One low-carbon ammonia plant.
Which technologies are part of Baker Hughes’ CCUS and energy transition portfolio?
Baker Hughes’ portfolio includes a range of technologies such as advanced CO₂ centrifugal compressors, the licensed Mixed Salt Process for solvent-based capture, investment in NET Power’s zero-emission power cycle, and the pilot-stage Mosaic Direct Air Capture (DAC) technology. The acquisition of Chart Industries adds critical cryogenic and liquefaction hardware to this portfolio.
What is the biggest challenge facing Baker Hughes’ CCUS strategy after its 2025 pivot?
The biggest challenge is now execution and integration. The company must successfully integrate the massive $13.6 billion Chart Industries acquisition while simultaneously delivering on a record backlog of complex, large-scale projects. Its future success depends on its ability to shift from strategy and acquisition to flawless operational delivery.
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