Baker Hughes Company ( BKR Quick Quote BKR - Free Report) recently announced that it has signed a memorandum of understanding (MoU) with Horisont Energi to boost its decarbonization efforts. The Polaris carbon storage project in offshore Norway is included in the deal for the development and integration of technologies.
The Polaris project of Horisont Energi, a carbon tech start-up from Norway, is estimated to have more than 100 million tons of carbon storage capacity. The amount is almost twice the annual greenhouse gas emitted in Norway. The project constructions will likely commence in the second half of 2022. It is expected to have the lowest carbon storage cost in the world, which will create profitable carbon capture, transport and storage (CCTS) facilities that will not depend on government support schemes.
Baker Hughes joining hands with Horisont Energi will likely catapult the project and increase the scale of solutions that can be used for the decarbonization of the energy industry. The strategic partnership will focus on increasing efficiency and provide flexible technology to curb carbon footprint. Importantly, developing a decarbonization technology that can be profitable without reliance on government supports can be a crucial turning point for the overall energy spectrum as most of the current technologies require some sort of aid from the regulators.
The companies are expected to focus on the carbon capture value chain by reducing carbon footprint from well construction and subsea segments, front-end engineering and design activities, turbomachinery technology, and others. The deal will likely allow the companies to stress on generating low- to zero-emissions power for clean ammonia facilities.
Baker Hughes is actively working on its decarbonization efforts. It is also taking part in several liquified natural gas (LNG) projects, which are touted to be cleaner energy sources. With growing demand for clean energy needs, countries around the world are investing in LNG terminals. Baker Hughes has extended its reach beyond oil fields to capitalize on contracts for manufacturing turbines and associated equipment that are being used in LNG export terminals.
Baker Hughes’ shares have soared 67.5% in the past six months compared with the 30.8% rise for the
industry. Zacks Rank and Stocks to Consider
Currently, the stock has a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space include
DCP Midstream, LP ( DCP Quick Quote DCP - Free Report) , Frank's International N.V. ( FI Quick Quote FI - Free Report) and Royal Dutch Shell plc ( RDS.A Quick Quote RDS.A - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .
DCP Midstream’s bottom line for 2021 is expected to jump 45.3% year over year.
Frank's International’s bottom line for 2021 is expected to rise 46.7% year over year.
Shell’s bottom line for 2021 is expected to increase 188.7% year over year.
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