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Baker Hughes (BKR) Wins Contract to Supply Hydrogen Compressors

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Baker Hughes Company (BKR - Free Report) recently received a contract from TERNA to supply gas turbines and compressors capable of operating on a mixture of natural gas and hydrogen for a new compression station to serve the Greek domestic gas market.

Baker Hughes will provide three compression trains, which include three NovaLT12 hydrogen-ready gas turbines and three PCL compressors. The turbo-compression technology has been designed to support the compression station, which has a capacity to transport up to 10% hydrogen.

In 2020, Baker Hughes teamed up with energy infrastructure network provider, Snam, to launch the NovaLT12 gas turbine to transport hydrogen-gas blends in its pipeline network in Italy. NovaLT12 allows for blends of 5-100% hydrogen.

The compression station is expected to start operating in 2024. The facility is anticipated to contribute to European Union (EU) Hydrogen Strategy objectives to accelerate the development of clean hydrogen in order to achieve a carbon-neutral energy system by 2050.

Baker Hughes has extensive experience in developing and supplying turbomachinery equipment to compress, transport and utilize hydrogen. The company’s portfolio involves advanced compressors, gas turbines, valves, centrifugal pumps, non-metallic pipes, hydrogen sensors, monitoring and diagnostics. It involves clean, integrated power solutions to generate power with hydrogen and hydrogen blends.

Technology is a key driver of the renewable energy transition. Baker Hughes’ climate technology solutions help customers in their transition to decarbonizing operations. The project could be significant progress for the Greek hydrogen value chain and the wider Europe market with the widespread adoption of low-carbon hydrogen.

Company Profile & Price Performance

Headquartered in Houston, TX, Baker Hughes is one of the leading oilfield service providers.

Shares of BKR have outperformed the industry in the past six months. The stock has gained 45% compared with the industry’s growth of 19.7%.

Zacks Investment Research
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Zacks Rank & Stocks to Consider

Baker Hughes currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Petrobras’ earnings for 2022 are expected to grow 55.5% year over year. In fourth-quarter 2021, PBR generated positive free cash flow for the 27th consecutive quarter, with the metric marginally rising to $7,511 million from $5,684 million recorded in last year’s corresponding period.

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