Baker Hughes Signs Deal with Shell for Renewable Energy Credits

Oil major Royal Dutch Shell's clean energy unit will provide renewable energy credits (REC) to oilfield firm Baker Hughes' facilities in United States for a two-year period, the companies said on Wednesday. 

The move comes as climate activists, investors, banks and some governments mount pressure on oil and gas companies to announce net zero emission targets and explore ways to move away from traditional oil and gas businesses, to tackle global warming and address climate change.

The RECs are tradable instruments substantiating that electricity has been generated from renewable energy sources.

With the latest agreement, Baker Hughes' global renewable electricity consumption is expected to grow 2% to 24% annually, the company said in a statement.

The agreement includes options for supplying up to 100 Gigawatt hours (GWh) of renewable power for Baker Hughes' facilities in Europe and developing an on-site solar solution for its chemical blending plant in Singapore.

Additionally, Baker Hughes will provide low-carbon technology solutions for Shell's LNG fleet.

(Reporting by Rithika Krishna in Bengaluru; Editing by Shinjini Ganguli)