Communicator

Troll C

Date: February 9, 2025

Norwegian energy giant Equinor has announced a significant shift in its energy strategy, halving its planned investments in renewable energy over the next two years while ramping up oil and gas production.

The company will reduce its renewable energy spending to $5 billion, down from the $10 billion it previously committed, citing rising costs and slower-than-expected progress in low-carbon projects.

Equinor has also revised its 2030 renewable capacity target to 10-12 GW, a reduction from the earlier goal of 12-16 GW. This adjustment comes as the company focuses on "value creation" and shareholder returns.

CEO Anders Opedal emphasized that the decision aligns with market realities, noting that profitability in renewables has not met expectations. Despite these changes, Equinor maintains its commitment to achieving net-zero emissions by 2050.

It plans to continue investing in carbon capture and storage (CCS) and hydrogen technologies while reducing emissions from its oil and gas operations. However, the company will now prioritize increasing oil and gas output by 10% through 2027, leveraging its assets on the Norwegian continental shelf and other key projects like the Johan Sverdrup oil field to produce 2.2mn barrels of oil equivalent per day by 2030.

This strategic pivot reflects broader industry trends as major energy companies, including BP and Shell, scale back renewable ambitions amid economic pressures and geopolitical uncertainties.

While Equinor's move is expected to bolster cash flow and shareholder value, it raises questions about the pace of the global energy transition and the challenges of balancing profitability with sustainability goals.

#energytransition  #renewableenergy  #oilandgas  #equinor  #hydrogen #carbonecapture  #ccs  #greenhydrogen #Sustainability 

Investors in wind energy projects in the United States are grappling with profitability challenges, raising concerns about the viability of these ventures.

Equinor and BP, prominent investors in US wind energy, have issued warnings about the uncertain future of projects amidst escalating construction expenses and supply chain disruptions. This dilemma is particularly pronounced in offshore wind farm developments, where developers are advocating for higher prices to offset mounting costs.

Joining the chorus of concern is Danish firm Orsted, which has decided to withdraw from an agreement to supply wind power from the Skipjack Wind project in Maryland, citing unprofitability.

Collectively, these setbacks have translated into significant financial losses, with the trio of Equinor, BP, and Orsted reporting a staggering $5 billion in losses from their US wind generation endeavors.

To address these challenges, state authorities have accommodated energy companies by permitting them to participate in bidding processes at increased costs. However, tensions have surfaced within joint ventures, such as the one between Equinor and BP, leading to renegotiations and the pursuit of more favorable terms.

Equinor and BP have each sought ownership of different projects, with Equinor assuming control of the Empire Wind project and BP taking over the Beacon Wind project. This transition has prompted contractual adjustments and renewed bidding processes to ensure profitability for the involved parties.

The outcomes of these bidding rounds, crucial for the future trajectory of US wind energy initiatives, are set to be revealed soon.

#equinor