Baker Hughes Company (BKR Quick QuoteBKR - Free Report) ), a leading energy technology company, and Woodside Energy have strengthened their collaboration to develop a small-scale decarbonization solution leveraging Net Power’s innovative platform. The companies announced a new Technology Development Agreement (“TDA”) aimed at advancing low-carbon power generation solutions tailored for oil and gas, heavy industries and other applications.

The initiative builds upon a 2022 Memorandum of Understanding (MoU) between Baker Hughes and Woodside that focused on reducing emissions across the natural gas supply chain. It follows Baker Hughes’ July 2024 agreement with Woodside, in which the company signed a 10-year service frame agreement to support the latter’s LNG operations in Australia with critical spare parts, maintenance services and digital asset performance solutions.

The patented Net Power platform generates electricity using natural gas while capturing nearly all associated carbon dioxide (CO2) emissions. Baker Hughes holds exclusive rights to the platform’s small-scale applications, positioning it as a leader in industrial decarbonization solutions.

The TDA will assess the feasibility of scaling Net Power’s technology to different industrial needs, with plans to incorporate additional development partners to refine the solution. The research and testing will benefit from Net Power’s demonstration facility in La Porte, TX, and its first utility-scale plant in Midland, TX.

Julie Fallon, Woodside’s executive vice president of Technical and Energy Development, highlighted the company’s commitment to leveraging cutting-edge carbon capture and utilization technologies with Baker Hughes. Alessandro Bresciani, Baker Hughes’ SVP of Climate Technology Solutions, reaffirmed the company’s dedication to decarbonization while addressing global energy demands.

Net Power CEO Danny Rice welcomed the partnership’s potential to expand the company’s reach beyond utility-scale projects, bringing ultra-low-emissions energy solutions to a broader market.

This collaboration highlights Baker Hughes’ growing role in industrial decarbonization and strengthens its position in the transition toward cleaner energy solutions.

Zacks Rank & Key Picks

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

Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation (AR Quick QuoteAR - Free Report) , NextDecade Corporation (NEXT Quick QuoteNEXT - Free Report) and EOG Resources, Inc. (EOG Quick QuoteEOG - Free Report) . While Antero Resources presently sports a Zacks Rank #1 (Strong Buy), NextDecade and EOG Resources carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally. 

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.