I'm Jordan Blum, editorial director at Hart Energy here at CERAWeek by S&P Global, and I'm joined by Alessandro Bresciani, senior vice president of climate technology solutions at Baker Hughes.
Jordan Blum, editorial director, Hart Energy: So how significant is the Inflation Reduction Act for how companies in the U.S. approach carbon capture and other energy transition projects?
Alessandro Bresciani, senior vice president of climate technology solutions, Baker Hughes: It definitely is extremely important, it’s going to move the market. It's going to help the operators obviously to get financials better for the investment they have to do. And that is going to come through the entire value chain actually, which means that the technology company, they're going to have a benefit out of it.
JB: This is a bit of an American phrase, but are we entering kind of a ‘wild, wild west’ with companies in the U.S. trying to get a piece of that Inflation Reduction Act pie, so to speak, with climate carbon capture projects?
AB: Well, listen it's possible. Everything is possible. The reality is that the technology is going to win at the end. So, something that is going to work is going to be really deployed. And so, I do believe that the operator, they're going to team up with companies that are going to be reliable. They're going to be capable to do their project, to execute the project and to stay with them for the life of the operations. There is a possibility, but at the end of the day, we believe that in due course of the year, we are going to see serious players in the market.
JB: Internationally, a lot of companies are still saying they consider carbon capture to be pretty cost-prohibitive. I mean, do you see that being the case or do you see maybe a U.S. approach, maybe a government-friendly approach translating abroad?
AB: The situation that are similar to the United States somewhere else? Europe, Australia. So you can see these… incentives coming through. Carbon capture today still has to optimize the cost. But there's technology available today that are really already optimized and can be deployed. So, in the course of the year, you're going to see a little bit more optimization, but definitely that is going to come with the new technology that's going to be introduce[ed] in the next few years. Today we still have available technology that can really fulfill the needs of our customers.
JB: Great. Can you talk a little bit about just the approach Baker Hughes is taking—y’all are obviously doing a lot of partnerships. One of the most recent ones is, y'all are working with HIF Global on combining direct air capture and carbon CCS projects as well.
AB: We partner with HIF for our technology that is DAC—direct carbon capture directly from the air. So we did that one specifically, obviously for a project in Chile. A project here in [the] United States is a good partnership to go through. Together we are going to scale up the technology. We are going to prepare something that is going to be deployable at an industrial scale.
JB: Another one—y’all are working with FFI [Fortescue Future Industries] on geothermal and green hydrogen projects. How's that going?
AB: Yes, I mean—FFI, HIF—together with others players like Air Products, Santos, like Petronas, obviously those are players that we are teaming up with in order to develop our technology. It's really a partnership that we are looking for. There's more than that to come actually. And this is really to get the market moving and be able to really innovate in the sector.
JB: Great. Are there any other projects or partnerships you want to highlight at Baker Hughes?
AB: No, I mentioned the ones that are relevant at this point and that obviously we are pretty proud to have in our portfolio.
JB: Thank you so much for taking the time. For more information, please visit us online at hartenergy.com.
Recommended Reading
E&Ps Pivot from the Pricey Permian
2025-02-01 - SM Energy, Ovintiv and Devon Energy were rumored to be hunting for Permian M&A—but they ultimately inked deals in cheaper basins. Experts say it’s a trend to watch as producers shrug off high Permian prices for runway in the Williston, Eagle Ford, the Uinta and the Montney.
EOG Ramps Gassy Dorado, Oily Utica, Slows Delaware, Eagle Ford D&C
2025-03-16 - EOG Resources will scale back on Delaware Basin and Eagle Ford drilling and completions in 2025.
Devon, BPX to End Legacy Eagle Ford JV After 15 Years
2025-02-18 - The move to dissolve the Devon-BPX joint venture ends a 15-year drilling partnership originally structured by Petrohawk and GeoSouthern, early trailblazers in the Eagle Ford Shale.
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-22 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
Shale Outlook: E&Ps Making More U-Turn Laterals, Problem-Free
2025-01-09 - Of the more than 70 horseshoe wells drilled to date, half came in the first nine months of 2024 as operators found 2-mile, single-section laterals more economic than a pair of 1-mile straight holes.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.