- Tech Insights
Lorenzo Simonelli was named Chairman of the Board in October 2017 and has been President and CEO since the company’s creation in 2017, where he oversaw the successful merger of GE Oil & Gas with Baker Hughes Inc. During his tenure, Lorenzo has transformed Baker Hughes from a legacy oilfield service company to an international energy technology company that combines innovation, expertise, and scale to provide solutions for energy and industrial customers. Lorenzo brings nearly 30 years’ experience to Baker Hughes, and in addition to his responsibilities at Baker Hughes, Lorenzo currently sits on the Boards of CNH Industrial and C3.ai, Inc and is active in numerous business and leadership councils.
As an energy technology company, Baker Hughes stands apart from other companies for its ability to offer truly differentiated technology at scale across a variety of energy sources—from oil & gas to alternative and renewable energy. “These are real capabilities our customers require and look for to reduce the carbon intensity of their operations, particularly on major projects,” says Simonelli. “We are already working with many customers on a project-by-project basis to bring low-carbon technologies into regular operations.”
"Baker Hughes has many exciting projects in the works to lead in the energy transition, helping to accelerate the energy transition and support a net-zero future with low to zero-carbon solutions."
There are four specific technologies Simonelli views as critical to their strategy to lead in the energy transition:
• Hydrogen as a fuel is a significant opportunity as Baker Hughes recently signed an agreement with NOVATEK to help decarbonize their LNG operations by using hydrogen blends with natural gas in their liquefaction processes.
• CCUS – continuous investment in this area, supporting new technologies to capture carbon in various ways and applying it across industrial industries. Baker Hughes acquired an innovative startup called Compact Carbon Capture in late 2020, and the company has signed multiple agreements and licenses with other partners to advance carbon capture, utilization and storage projects globally.
• Methane monitoring and reduction – Baker Hughes has a system called LUMEN, using land and drone sensors, to detect methane leaks in oil & gas operations, down to inches of accuracy.
• Emissions control – Flare.IQ is a promising technology Baker Hughes introduced which can help operators manage their flare stack emissions using sensors and software.
“As we continue to navigate the pandemic and macro-economic issues, I find it is best to focus on what we do know and what we can control. We know that the world needs more energy, and the world needs more from energy,” says Simonelli. “We don’t see that outlook changing short term or long term. For that reason, our purpose at Baker Hughes is clear, and our commitment is firm. We make energy safer, cleaner and more efficient for people and the planet.”
Baker Hughes has many exciting projects in the works to lead in the energy transition, helping to accelerate the energy transition and support a net-zero future with low to zero-carbon solutions. The company recently signed an agreement with Horisont Energi in Norway for the Polaris carbon storage project; under the agreement, the two companies will explore the development and integration of technologies to minimize the carbon footprint, cost, and delivery time of carbon capture, transport, and storage (CCTS). Besides, Baker Hughes recently became an investor in the FiveT Hydrogen Fund alongside Chart Industries and Plug Power, helping to accelerate the hydrogen economy and future infrastructure projects using clean hydrogen.
The company’s strategy is not only focused on financial and operational excellence. It is also heavily focused on ESG leadership and Corporate Responsibility, including its net-zero emissions commitment. In early 2019, Baker Hughes was among the first in the industry to commit to achieve net-zero carbon emissions from our operations by 2050 and use their portfolio to help the industry control and reduce its emissions. “Ultimately, this commitment plays an important part in driving our strategic decision-making and R&D approach. Maintaining focus allows us to manage across market cycles in pursuit of a low- to zero-carbon energy future,” says Simonelli. “We remain committed to investing in our products and services to maintain our leadership position across our offerings, including a $595 million research & development spend in 2020.” IE
CEO of Baker Hughes
Baker Hughes (NYSE: BKR) is an energy technology company that provides solutions for energy and industrial customers worldwide. Built on a century of experience and with operations 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