Baker Hughes Secures New Contracts for Growing Non-Oilfield Segment

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Written by Danny Levin, Deputy Editor for IIR News (Sugar Land, Texas)

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Summary

Fresh off reporting major growth in its industrial and energy-technology services segment, Baker Hughes has announced several new developments that will add to its backlog.

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Baker Hughes' Growing Non-Oilfield Segment

In the aftermath of reporting softening demand for its oilfield services and strong growth in its industrial and energy-technology services segment, Baker Hughes Company has announced several developments that will add to the latter's backlog.

In its recent quarterly earnings-related conference call, company executives noted the bright future for the Industrial & Energy Technology (IET) segment. Chief Executive Officer Lorenzo Simonelli said the company is targeting $2.4 billion to $2.6 billion of new energy orders in 2026, while Chief Financial Officer Ahmed Moghal said the company was in a "global power-demand multiyear growth cycle ... In 2025, Power Systems orders totaled $2.5 billion, with $1 billion directly linked to data center applications. We now see data center orders to total $3 billion between 2025 and 2027."

For more information on Baker Hughes' recent financial results and existing projects featuring its services, see January 29, 2026, article - Baker Hughes Looks to Power Systems, LNG for Business in 2026.

The IET segment entails a wide variety of solutions, including gas and power technology equipment and services for power generation and industrial applications like data centers, as well as climate technologies such as carbon, capture and storage, and hydrogen/ammonia production.

New Developments

Baker Hughes has announced it extended its relationship with global long-duration energy storage developer and operator Hydrostor. The agreement will integrate Baker Hughes' technology with the latter's compressed air energy storage (CAES) solution; it includes up to 1.4 gigawatts of orders for power generation and compression technology solutions (e.g. compressors, motors and generators).

CAES systems utilize electrically powered compressors during periods of low electricity demand to compress ambient air, storing it in underground caverns. When electricity demand peaks, the stored compressed air is released, flowing through a turbine connected to an electricity generator to produce electricity.

"Increasing pressure on electric grids is making long-duration energy storage an urgent priority. Hydrostor's innovative approach offers a low-carbon solution to ensure power reliability across a diverse mix of generation resources," Simonelli said in a press release. Baker Hughes has been an investor in the company since 2019.

"We're excited to build on our relationship with Baker Hughes as we near construction for our flagship projects and work to expand our project pipeline, as load grows and AI data center infrastructure is being built out globally," said Curtis VanWalleghem, chief executive officer of Hydrostor.

Those flagship CAES projects are the 200-megawatt Silver City Energy Storage Centre in Broken Hill, Australia and the 500-megawatt Willow Rock Energy Storage Center in California--Hydrostor's first utility-scale project being built in the U.S. Industrial Info is tracking both projects in the late permitting stage, and recent company updates shed more light on the progress.

Hydrostor earlier this month said it received its California Energy Commission permit in December as the project continues to move through the permitting process, and later announcing the Australia project is "set to begin construction later this year." Industrial Info is currently tracking the U.S. project as having a low probability of beginning construction in early 2027. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can read more information on the U.S. and Australia projects.

Baker Hughes also has announced multiple awards to advance one of the first low-carbon ammonia fertilizer production plants in the U.S., being developed by Wabash Valley Resources: supplying "essential compression and integrated well construction solutions that support multiple parts of the clean ammonia value chain - from hydrogen production to CO2 [carbon dioxide] separation and permanent sequestration." These latest awards follow a separate well construction contract booked in the third quarter of 2025 to support the site's long term CO2 storage infrastructure.

Armed with a now-finalized $1.5 billion loan from the U.S. Department of Energy, the project, located in West Terre Haute, Indiana, will repurpose an existing gasification facility into a state-of-the-art clean ammonia plant. Subscribers can read a detailed report on the project, which is expected to kick off later this year.

Baker Hughes to Provide Marathon Petroleum with Downstream Chemicals

Although demand for its IET segment is growing rapidly, Baker Hughes still is snagging awards in Oilfield Services & Equipment.

Earlier this month, the company announced a multi-year agreement with Marathon Petroleum to "become its preferred provider for hydrocarbon treatment products and services at refineries across the United States."

Baker Hughes will provide its portfolio of downstream chemical technologies to be deployed at 12 unnamed oil refineries and two renewable fuel facilities in the U.S. "to support reliable operations and environmental compliance while reducing nonproductive time." This includes its proprietary brands of heavy oil demulsifiers, corrosion inhibitors, renewable additives, and digital monitoring tools.

"Providing the energy that powers modern industry requires refiners to be flexible, efficient, reliable and sustainable," said Amerino Gatti, executive vice president, Oilfield Services & Equipment.

Marathon operates two renewable diesel facilities, in Martinez, California, and Dickinson, North Dakota, and Industrial Info is tracking 17 operational Marathon refineries across the U.S. Subscribers can view a full list.

Key Takeaways

• Baker Hughes is further expanding into providing technology and services for non-oilfield applications.
• This includes new contracts to support power generation, ammonia production and CCS.
• The company still is building out its legacy segment, evidenced by a new agreement to provide downstream chemicals for Marathon Petroleum's U.S. facilities.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).