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Baker Hughes (BKR) Partners With Snam for Hydrogen-Ready Tech

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Baker Hughes Company (BKR - Free Report) ), a leading energy technology company, has secured a contract with Snam, Europe’s premier operator in natural gas infrastructure. The agreement entails supplying Snam with three NovaLT™12 gas turbine-driven compressor trains for a new gas compressor station in Sulmona, Italy.

Milestone in Decarbonization Efforts

The Sulmona station forms an integral part of the Adriatic Line, a pipeline project initiated by Snam. This project, included in Italy’s National Recovery and Resilience Plan (PNRR) as part of the REpowerEU Plan, is deemed eligible for financing.

The Adriatic Line encompasses the construction of a 425 km long, hydrogen-ready pipeline, facilitating the transport of additional energy supplies from Azerbaijan, Africa and the Eastern Mediterranean region to Northern Europe.

Hydrogen-Ready Technology

The adoption of Baker Hughes' NovaLT™12 turbines represents a significant leap in decarbonizing Italy's gas network infrastructure. These turbines offer the flexibility to operate on either 100% natural gas or hydrogen blends of up to 10%. This aligns perfectly with Snam’s strategy to achieve carbon neutrality on direct emissions by 2040.

Building on Collaboration

The contract awarded to Baker Hughes builds upon a longstanding collaboration between the two companies. This collaboration witnessed the successful testing of the world’s first "hybrid" hydrogen turbine (designed for a gas network) in 2020 and the installation of a NovaLT™12 turbine at Snam’s Istrana site in Italy in November 2022.

Ganesh Ramaswamy, the executive vice president of Industrial & Energy Technology at Baker Hughes, expressed his thoughts on the achievement, emphasizing the importance of the ongoing collaboration with Snam in navigating the energy transition. He highlighted the importance of continuous partnership to innovate and implement groundbreaking solutions for decarbonizing gas networks.

Full Hydrogen Value Chain Support

Baker Hughes’ expertise in hydrogen projects dates back to the 1910s. Its portfolio includes advanced compressors, gas turbines, valves, centrifugal pumps, non-metallic pipes, hydrogen sensors, monitoring and diagnostics solutions, as well as clean power solutions to produce power with hydrogen and hydrogen blends.

BKR’s engagement with Snam represents a significant stride in pioneering hydrogen solutions within the energy sector. By leveraging advanced technology and fostering collaborative partnerships, both entities are poised to play a pivotal role in shaping the future of sustainable energy infrastructure.

Zacks Rank & Key Picks

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

Some better-ranked stocks in the energy sector are Sunoco LP (SUN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Global Partners (GLP - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow. 

The Zacks Consensus Estimate for SUN’s 2024 earnings per share (EPS) is pegged at $4.96. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.32. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

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