Energy Efficiency and Greenhouse Gas Reduction

Energy efficiency has become a key environmental goal within Baker Hughes. In 2008, we established an energy baseline, by requiring our large locations to report on their annual usage of electricity, natural gas, propane, off-road diesel and fuel oil in a global reporting database called “GreenLink”. From mid-2009, we began a company-wide program for monthly reporting of energy efficiency data to elevate awareness and drive performance improvements. Having visibility to data on energy use has enabled location management to understand the energy profile of their facility and operations. This continues today and has resulted in a significant reduction in energy use and greenhouse gas emissions. The initiatives have also resulted in significant cost savings.

Energy Reduction Initiatives

At the outset, it was clear that success of our energy conservation goal would require the commitment and support of all parts of the company. Examples of successful initiatives are as follows:

Energy-Reduction Toolkit. An energy-reduction toolkit was developed and communicated internally. It encouraged all employees to take action to save energy in the course of their work, for example by turning off electrical equipment when not in use. This toolkit includes a variety of useful tools which are updated periodically, including worksheets to document short-term and long-term action plans; a selection of conservation options and improvement projects, awareness posters, success stories and our energy audit protocol.

Energy Audits. Since 2010 energy audits have been conducted to identify energy reduction opportunities. The audits involve a review of past energy bills, an on-site visual assessment of key energy-use systems (including indoor climate control, boilers, compressors, lighting, motors, transformers and switchgear) and basic measurement and metering of this equipment to gauge its efficiency. There follows a more in-depth assessment of the most significant 3-5 capital items to more accurately define environmental benefits, identify capital costs and return on investment.  A business case is then prepared to support the recommended actions from the audit.

Sustainable Building Standards. In 2009, the Environmental Affairs group and the Real Estate/Facilities group collaborated on the development and implementation of sustainable building standards applied to new and existing facilities. Green building concepts, typically, include a focus on equipment such as lighting and climate control systems that use significant energy. Baker Hughes’s largest office in Houston, Texas, completed a massive energy reduction project involving lighting retrofits throughout the campus; this concept is being adopted as a standard practice for new sites, including our Eastern Hemisphere headquarters in the Dubai Techno Park which won a local environmental award.

Information Technology Initiatives. Our Information Technology group has also made significant reductions in energy use throughout our facilities and in our data centers by the introduction of energy efficient equipment and energy-saving management practices.

Solar Energy. In some locations, solar power has been employed as a clean energy source for our facilities.  In Dubai, solar panels are being used to light the vehicle parking areas. Our facility in Ravenna, Italy, has installed about 500 m2 of solar panels on the roof, which produces approximately 85 kW of electricity per day.  This reduces the amount of electricity used from nonrenewable resources and contributes to a reduction in greenhouse gas emissions.

Alternative Energy. At our new 70-acre integrated services campus in Shafter, CA, we have installed a natural gas fuel cell from Bloom Energy for electrical self-generation. It uses a chemical reaction rather than a combustion process, so there are no greenhouse gas emissions. Only water vapour is emitted, which is recycled within the fuel cell. Our Shafter location was the first industrial site to employ this specific technology. The natural gas fuel cell supplies approximately 60% of the power required to operate the main office, laboratories, and vehicle maintenance workshop.

Environmental Reporting

Baker Hughes has developed an Energy Management and Greenhouse Gas Reporting Plan to document the way we manage energy and GHG reduction initiatives, and to quantify and report on our performance.

On an annual basis, energy data are used to calculate greenhouse gas emissions for public reporting. We participate in the Carbon Disclosure Project, in which organizations across the globe measure and disclose greenhouse gas emissions, water use, and climate change strategies. This information is designed to motivate corporations and governments to set reduction targets and make performance improvements, and informs investors and the public on company sustainability performance. The Carbon Disclosure Project is the only global climate change reporting system in existence.

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