Baker Hughes and Vallourec entered into a Memorandum of Understanding on February 17 2026 to collaborate on underground hydrogen storage, combining Vallourec’s Delphy vertical storage system with Baker Hughes’ high‑pressure compression technology. The agreement focuses on optimizing compression–storage configurations and determining the most efficient operating pressures for green‑hydrogen applications, including green ammonia, sustainable fuels, green steel manufacturing and data‑center power.
The partnership is strategically significant because it merges Vallourec’s proven Delphy solution—capable of storing up to 100 tons of green hydrogen and certified by Bureau Veritas and DNV—with Baker Hughes’ expertise in hydrogen compression, notably its High‑Pressure Ratio Compressors. Together, the companies aim to reduce customers’ total cost of ownership and enhance competitiveness in the growing green‑hydrogen market, which is projected to expand from roughly USD 18.8 billion in 2025 to USD 34.6 billion by 2034, a CAGR of about 7%.
Baker Hughes’ recent financial performance underscores the company’s readiness to pursue this partnership. In Q4 2025, the company reported revenue of $7.39 billion, beating analyst expectations of $7.07 billion, and adjusted earnings per share of $0.78 versus the consensus estimate of $0.67—a beat of $0.11 or 16%. The Industrial & Energy Technology (IET) segment drove the upside, with orders of $4.02 billion against an estimate of $3.34 billion. The earnings beat was largely driven by disciplined cost control and a favorable mix shift toward higher‑margin IET projects, offsetting headwinds in the Oilfield Services & Equipment segment.
Vallourec’s financial context also supports the strategic fit. In Q3 2025, the company posted a Group EBITDA of €210 million, translating to a 23% margin. For Q4 2025, management projected EBITDA between €195 million and €225 million, with the full‑year 2025 results expected on February 27 2026. These figures demonstrate Vallourec’s solid profitability and its capacity to invest in the hydrogen value chain.
Philippe Guillemot, Chairman and CEO of Vallourec, said, "We are proud to initiate this collaboration with Baker Hughes, a recognized leader in compression technology. Our capabilities are highly complementary, particularly as Baker Hughes holds strong expertise in compression, a critical step before the storage of compressed hydrogen. This cooperation confirms Vallourec's strategy to develop relationships along the value chain and commitment to bringing green hydrogen, at scale, for industry decarbonization."
The MOU positions both companies to capture a share of the expanding green‑hydrogen ecosystem, offering integrated solutions that lower operating costs for customers and accelerate the deployment of hydrogen‑based processes across multiple industrial sectors. By combining complementary technologies, Baker Hughes and Vallourec aim to strengthen their competitive foothold and support the broader transition to low‑carbon energy systems.
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