Baker Hughes’ 2025 CCUS Strategy: How Acquisitions and Mega-Projects Are Securing Market Leadership
From Pilots to Pipelines: How Baker Hughes Is Commercializing Its CCUS Projects in 2025
Baker Hughes has decisively shifted its Carbon Capture, Utilization, and Storage (CCUS) strategy from foundational technology partnerships to the execution of large-scale, commercially significant infrastructure projects. The period between 2021 and 2024 was characterized by strategic investments in emerging technologies and pilot programs, but 2025 marked a clear pivot to deploying this technology at scale. This transition validates the company’s technology-first approach, positioning it as a critical supplier of the hardware and services required for global decarbonization.
- The company’s early strategy focused on acquiring novel technologies and forming exploratory partnerships, such as the 2022 acquisition of Direct Air Capture (DAC) firm Mosaic Materials and a 2023 collaboration with HIF Global to pilot DAC technology for eFuels.
- In 2025, this strategy materialized into large-scale commercial contracts, including supplying core compression technology for the Blue Point Number One project in Louisiana, which will capture 2.3 million tons of CO₂ annually, and the Sweetwater Carbon Storage Hub in Wyoming, a 100,000-acre dedicated storage site.
- This shift is further evidenced by the move from technology development to full-stack project supply, providing advanced CO₂ compressor trains for Eni’s Liverpool Bay CCS project in the UK, a deal announced in June 2025.
- The cornerstone of this commercial pivot is the transformative $13.6 billion acquisition of Chart Industries in July 2025, which instantly provides Baker Hughes with a market-leading portfolio of commercially ready hardware for cryogenics and liquefaction, essential for the entire CCUS and hydrogen value chain.
Scaling Up: Analyzing Baker Hughes’ Low-Carbon Investment Trajectory
Baker Hughes‘ investment strategy has visibly escalated from targeted, technology-focused acquisitions to a multi-billion-dollar consolidation of the low-carbon hardware market. Early investments between 2022 and 2024 secured access to innovative technologies in DAC, geothermal, and fuel cells. However, 2025 was defined by a landmark acquisition and significant capital expenditure to expand manufacturing, signaling a strategic transition from R&D to large-scale production and market dominance.
Table: Baker Hughes Low-Carbon Strategic Investments
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Chart Industries | July 2025 | A landmark $13.6 billion all-cash acquisition to secure a leading position in hardware for LNG, hydrogen, and carbon capture, including cryogenics and liquefaction technology. | Baker Hughes’ $13.6 Billion Acquisition… |
| Italian Facilities Expansion | September 2025 | An investment of nearly €300 million to expand manufacturing capacity and R&D for natural gas, hydrogen, and CO₂ solutions, supporting global project demand. | Baker Hughes to Invest Nearly €300mn… |
| Society of Exploration Geophysicists (SEG) | June 2025 | A grant from the Baker Hughes Foundation to support the upskilling of geoscientists for roles in carbon management, building the talent pipeline for CCUS. | Baker Hughes Foundation Awards Grant… |
| Elcogen | April 2024 | Strategic investment as part of a €140M funding round to scale solid oxide fuel cell (SOFC) technology for green hydrogen production and power generation. | Elcogen Raises €140M… |
| Zhero | August 2023 | Equity investment alongside TotalEnergies and Technip Energies to support the development of green energy production and infrastructure projects. | TotalEnergies, Baker Hughes… Invest |
| Baseload Capital | June 2023 | Strategic investment to combine Baker Hughes‘ technology with Baseload’s project development expertise to accelerate geothermal projects. | Baker Hughes and Baseload Capital… |
| Mosaic Materials Inc. | April 2022 | Acquisition of a Direct Air Capture (DAC) technology company to develop next-generation CO₂ capture solutions using Metal-Organic Frameworks (MOFs). | Baker Hughes Acquires Mosaic Materials… |
| GreenFire Energy Inc. | March 2022 | Strategic investment to advance closed-loop geothermal technology, aiming to expand access to geothermal resources globally. | Baker Hughes Announces Investment in Geothermal… |
The Partnership Pivot: From MoUs to Major Project Supply Agreements
The nature of Baker Hughes‘ partnerships evolved significantly between 2021 and 2025. Initial collaborations were often structured as Memorandums of Understanding (MoUs) focused on joint technology exploration. By 2025, these evolved into definitive supply agreements and strategic partnerships directly tied to the construction and operation of large-scale, capital-intensive low-carbon projects, cementing Baker Hughes‘ role as an essential technology provider.
Table: Baker Hughes Key Low-Carbon Partnerships
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Blue Point Number One | October 2025 | Selected by Technip Energies to supply compression and turbine technology for the world’s largest low-carbon ammonia plant, capturing 2.3M tons/year of CO₂. | Baker Hughes to Supply Key Technology… |
| PETRONAS | July 2025 | An MoU to collaborate on CCUS and hydrogen technology solutions for the Asia-Pacific region, expanding its international low-carbon footprint. | Baker Hughes, PETRONAS Collaborate… |
| Eni Liverpool Bay CCS | June 2025 | Contracted by Saipem to provide advanced CO₂ compressor trains for Eni’s CCS project in the UK, contributing to European decarbonization infrastructure. | Baker Hughes to Provide CO₂ Compressor Technology… |
| Frontier Infrastructure | March 2025 | Strategic partnership to develop the Sweetwater Carbon Storage Hub, a large-scale CCS project in Wyoming, with Baker Hughes providing key subsurface and compression technologies. | Baker Hughes, Frontier Infrastructure Announce… |
| HIF Global | March 2023 | Collaboration to pilot Mosaic’s DAC technology for eFuels production, targeting the capture of 25 million tons of CO₂ per year at commercial scale. | Baker Hughes and HIF Global to Collaborate… |
| ADNOC | May 2023 | Agreement to accelerate the development of technology solutions for green and low-carbon hydrogen and CCUS in the Middle East. | ADNOC and Baker Hughes Collaborate… |
| Horisont Energi | March 2021 | An early-stage MoU to explore technology integration for the Polaris CCS project in Norway, which aims to store over 100 million tons of CO₂. | Baker Hughes and Horisont Energi Sign MoU… |
Baker Hughes’ Geographic Pivot: U.S. Mega-Projects Take Center Stage in 2025
Baker Hughes strategically expanded its CCUS focus from foundational projects in Europe and partnerships in the Middle East to securing dominant, large-scale infrastructure victories in the United States in 2025. While early-stage work established a global presence, the recent focus on the U.S. demonstrates a clear strategy to capitalize on favorable policy environments and geological advantages to build out a commercially viable CCUS ecosystem.
- Between 2021 and 2024, the company’s geographic activities were centered on Europe and the Middle East, with partnerships like the Polaris CCS project with Horisont Energi in Norway and a collaboration with ADNOC in the UAE.
- The year 2025 marked a decisive shift to North America, with major project announcements including the Blue Point Number One low-carbon ammonia plant in Louisiana, the Commonwealth LNG facility in Louisiana, and the Sweetwater Carbon Storage Hub in Wyoming.
- This U.S. focus targets key industrial regions like the Gulf Coast and resource-rich states like Wyoming, which offer both significant emissions sources and ideal geology for permanent CO₂ storage, creating concentrated hubs for CCUS activity.
- This regional pivot is supported by global manufacturing capabilities, exemplified by the €300 million investment in its Italian facilities in September 2025 to develop and produce the advanced technologies needed for these U.S. and global projects.
From R&D to Reality: Baker Hughes’ CCUS Technology Reaches Commercial Scale
Baker Hughes‘ CCUS technology portfolio has matured from the R&D and pilot stages to proven, commercial-scale deployment, a progression validated by major equipment orders for multi-billion dollar projects in 2025. The company’s strategy of acquiring and developing next-generation solutions in the earlier period has now translated into a commercially robust and integrated offering capable of supporting the entire CCUS value chain.
- The journey began with forward-looking moves like the 2022 acquisition of Mosaic Materials for its next-generation DAC technology, which at the time was focused on lab-scale development and future pilot testing.
- The launch of the CarbonEdge™ digital platform in September 2024 signaled a transition toward providing operational management solutions for active CCUS projects, anticipating the need for risk and performance monitoring at scale.
- By 2025, the focus shifted to supplying mature, field-proven hardware, with Baker Hughes providing essential compression technology for large-scale projects like Blue Point Number One (ammonia and CO₂), Eni’s Liverpool Bay (CO₂ reinjection), and Commonwealth LNG (natural gas liquefaction).
- The $13.6 billion acquisition of Chart Industries in July 2025 served as the ultimate validation point, bypassing incremental R&D by integrating a full suite of commercially ready cryogenic and liquefaction technologies essential for CCUS, LNG, and hydrogen projects.
Table: Baker Hughes CCUS Strategy SWOT Analysis
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Core engineering expertise in turbomachinery and subsurface analysis; established relationships with national and international oil companies like ADNOC. | A dominant and integrated technology portfolio for the entire CCUS value chain; expanded manufacturing capacity through investments like the €300M Italy expansion. | The company transitioned from leveraging existing expertise to owning the critical hardware supply chain for CCUS through the Chart Industries acquisition. |
| Weaknesses | Nascent revenue from new energy ventures; reliance on partners like HIF Global for pilot projects and new technology validation. | High capital outlay for acquisitions ($13.6B for Chart Industries); significant integration risk associated with a large, all-cash transaction. | Strategic risk shifted from technology development and market creation to financial exposure and large-scale project execution. |
| Opportunities | Growing policy support for CCUS; early-mover advantage in next-generation technologies like the Mosaic Materials DAC acquisition. | Massive, tangible demand from hard-to-abate sectors like low-carbon ammonia (Blue Point) and new energy-intensive industries like data centers (Frontier Infrastructure). | The market opportunity evolved from a theoretical, policy-driven future to a concrete pipeline of bankable, large-scale infrastructure projects. |
| Threats | Competition from specialized technology startups; slow Final Investment Decisions (FIDs) on capital-intensive low-carbon projects. | Competitors like SLB and Halliburton pursuing different, less capital-intensive low-carbon strategies; project delays or cancellations, such as the pending FID for Commonwealth LNG. | The primary threat shifted from being out-innovated by startups to failing on large-scale project delivery and managing competition from other integrated energy service giants. |
2026 Outlook: From Acquisition to Execution
The critical strategic focus for Baker Hughes in the year ahead will be the successful integration of Chart Industries and the flawless execution of its newly secured mega-projects to convert its massive capital outlay into tangible revenue and market dominance. The success of this pivot now hinges on operational excellence and demonstrating that its integrated technology stack can deliver complex, large-scale decarbonization projects on time and on budget.
- The primary item to watch is the integration of Chart Industries’ portfolio. Announcements on consolidated supply chains and joint technology offerings will be key indicators of how quickly Baker Hughes can realize synergies from the $13.6 billion deal.
- Execution milestones for the Blue Point Number One project, which begins construction in 2026, will serve as a critical public benchmark of the company’s ability to deliver on its promises in the blue ammonia space.
- A positive Final Investment Decision on the 9.5 MMtpa Commonwealth LNG project, targeted for Q1 2026/2027, would solidify a major equipment order and validate the market demand for its high-efficiency LM9000 turbines.
- The partnership with Frontier Infrastructure to power data centers with gas-with-CCS potential at the Sweetwater Carbon Storage Hub is an innovative model. Expect Baker Hughes to pursue similar integrated energy and technology infrastructure plays in other regions.
Frequently Asked Questions
What was the biggest change in Baker Hughes’ CCUS strategy in 2025?
In 2025, Baker Hughes decisively shifted its CCUS strategy from foundational technology partnerships and pilot programs to the execution and supply of large-scale, commercially significant infrastructure projects. This pivot is demonstrated by securing major contracts for projects like Blue Point Number One and the acquisition of Chart Industries to supply market-ready hardware.
Why was the acquisition of Chart Industries so important for Baker Hughes’ strategy?
The $13.6 billion acquisition of Chart Industries was a cornerstone of the 2025 strategy because it instantly gave Baker Hughes a market-leading portfolio of commercially ready hardware for cryogenics and liquefaction. This technology is essential for the entire CCUS and hydrogen value chain, enabling the company to become a full-stack supplier for major projects.
What are some examples of the large-scale projects Baker Hughes secured in 2025?
In 2025, Baker Hughes secured several key contracts, including supplying compression technology for the Blue Point Number One low-carbon ammonia plant in Louisiana (capturing 2.3M tons of CO₂ annually), providing CO₂ compressor trains for Eni’s Liverpool Bay CCS project in the UK, and partnering on the Sweetwater Carbon Storage Hub in Wyoming.
How did Baker Hughes’ geographic focus change in 2025?
While early partnerships were centered in Europe (Norway) and the Middle East (UAE), 2025 marked a clear pivot towards securing large-scale infrastructure projects in the United States. Major wins like the Blue Point project in Louisiana and the Sweetwater hub in Wyoming show a strategic focus on capitalizing on the favorable policy and geological environment in the U.S.
What is the key challenge or focus for Baker Hughes in 2026?
For 2026, the critical focus for Baker Hughes is execution. This includes the successful integration of Chart Industries’ large portfolio and the flawless delivery of its newly secured mega-projects like Blue Point Number One. The goal is to convert its massive 2025 capital investments into tangible revenue and solidify its market dominance.
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