Equinor has launched new climate ambitions to reduce the absolute greenhouse gas emissions from its operated offshore fields. On 10 December Equinor completed the acquisition of a 50 % interest in the offshore wind development. Equinor and Masdar have joined forces with ORE Catapult to share floating offshore wind data. Equinor has signed an agreement to divest to Repsol its 63% interest in.
Norway by 40% by 2030, 70% by 2040 and to near zero by 2050. By 2030 this implies annual cuts of more than 5 million tons. Equinor signed contracts totalling around NOK 3.3 billion for the Hywind Tampen wind. It corresponding to around 10% of Norway’s total CO₂ emissions. Equinor launches new climate ambitions to reduce the absolute greenhouse gas emissions.
Equinor supports the Paris agreement and a net zero target for society. The company now has an interest in all three Bałtyk offshore wind development projects. Hywind Scotland is now available to access on a free to use basis for supply chain businesses. Its onshore business in the Eagle Ford in the US state of Texas.
The contracts have been awarded to Kvaerner AS, Siemens Gamesa Renewable Energy AS. Company launching an unprecedented set of ambitions for forceful industrial action. The signing of five major contracts is a key milestone in realizing the Hywind Tampen pioneer project. Substantial absolute emission reductions in Norway, aiming towards near zero in 2050.
This is in line with society’s climate targets and our strategy to create high value with low emissions. The acquisition of Baltyk I strengthens our presence in the Baltic Sea area. The transaction covers all of Equinor’s interests in the Eagle Ford Joint Venture with Repsol. While realizing these ambitions, company also expect operated fields and plants to create significant value.
The POD service is designed to offer comprehensive data sets from offshore wind demonstrator sites. It generate more than 3 trillion Norwegian kroner in income for the Norwegian State towards 2030. Repsol will have a 100% interest in the asset. New fields, field life extensions, improved oil and gas recovery. The contracts prove that the oil and gas industry is also competitive for renewables projects.
The new climate ambitions will strengthen future competitiveness and value creation for Equinor. The total consideration is USD 325 million. It supporting industrial developments in Norway. The awarded contracts will generate considerable spin-offs in Norway. Company appreciate the close cooperation with industry partners and suppliers, and to realize the ambitions.
Equinor supports the Paris agreement and a net zero target for society. It need even closer collaboration across industries and with authorities. Company have the opportunity to build scale and value in what an important energy region. Company plan investments in the order of 50 billion Norwegian kroner together with our partners by 2030.
The substructures will be designed and constructed by Kvaerner. It cut emissions in order to strengthen the long-term competitiveness for our fields and plants. It now launching an unprecedented set of ambitions for forceful industrial action. The first phase of the plan to reduce emissions by 2030 means more than 5 million tons in annual reductions.
“In setting these ambitions Equinor has assumed stable framework conditions and necessary investments”, Saetre said.
It representing around 10% of total annual Norwegian greenhouse gas emissions. It allowing the company to utilize its expertise in concrete structures on the Norwegian continental shelf for this contract. Similar as for the EU ETS targets, 2005 is used as a baseline for emissions reductions. The Bałtyk I offshore location license allows for a development of a wind farm with a capacity up to 1560MW.
Total emissions for Equinor operated fields and plants in 2018 were around 13 million tons, approximately the same level as in 2005. It was in 2018 that Equinor acquired a 50 % interest in the offshore wind development projects Bałtyk II. The ambition will cover all greenhouse gas emissions from offshore fields and onshore plants operated by Equinor in Norway.
It including both Scope 1 and Scope 2 emissions of CO₂ and methane. The substructures will be constructed at Kvaerner’s yard at Stord and site at Dommersnes in the Vindafjord in Norway. Since methane emissions are very low at the Norwegian continental shelf, the CO₂-emissions is the predominant part. It have a combined planned capacity of 1,440 MW with the potential power.
A 40% reduction by 2030 will be realized through large scale industrial measures, including energy efficiency, digitalization. Equinor decided to exercise an option to acquire a 50 % interest in the Bałtyk I offshore wind development project. It launch of several electrification projects at key fields and plants, including the Troll and Oseberg offshore fields.
The wind farm area is in the Baltic Sea in water depths of 25-35 meters. This transaction supports Equinor’s strategy to optimise onshore portfolio, enhancing financial flexibility. The 2030 ambition will require investments of around NOK 50 billion for Equinor and its partners. The contract includes assembly activities, tow-out and installation of completed wind turbines.
These investments will have neutral to positive net present value. The project will involve several Norwegian engineering communities. Further reduction ambitions towards 70% in 2040 and close to zero in 2050 will entail additional measures. Under the agreement between Equinor, Masdar and ORE Catapult, subscribers can access a pre-defined set.
It consolidation of infrastructure as well as opportunities to develop new technologies and value chains. The US is a core area for Equinor, demonstrated by recent acquisitions including assets in the Gulf of Mexico. Equinor expects Norwegian oil and gas production to be less than half of current levels, assuming development of defined projects.
Poland is an important market for Equinor. Fabrication of the wind turbines has been awarded to Siemens Gamesa,and will be carried out at several locations. The substantial efforts to increase production from existing fields and continued exploration. Equinor will as operator be responsible for operation and maintenance of the wind farm.
Eldar Sætre, CEO of Equinor says “We have already brought CO₂-emissions in the production process down to industry leading levels”.
Equinor aims to utilize its capabilities within innovation, technology and large-scale industrial solutions to develop new competitive value chains. This is in line with society’s climate targets and our strategy to create high value with low emissions. Equinor is pursuing and maturing opportunities within offshore wind, carbon capture.
It storage and emissions-free hydrogen based on natural gas. The two companies have a 50/50 joint venture and are working together to mature the Baltyk projects towards construction. The ambitions will support the development of new value chains within hydrogen and carbon capture. The three organisations aim to better engage industry, academia and the offshore wind supply.
The storage and help ensure that the Norwegian continental shelf and onshore plants can play an important role. The shared long-term goal is to reduce the cost of floating offshore wind. It create value in a world with net zero emissions. The oil and gas platforms will be the first ever powered by a floating offshore wind farm.
In setting ambitions for substantial cuts towards close to zero emissions in 2050, Equinor has assumed stable Norwegian framework conditions. Emissions from the Gullfaks and Snorre fields will be reduced by more than 200,000 tonnes per year. A continuation of the industry’s NOX-fund and other positive measures can support substantial emissions reduction.
The initiative shows Equinor’s strong commitment to support dissemination and education in the UK. Equinor entered the Eagle Ford asset in 2010 through a joint acquisition with Talisman Energy USA. The ambitions for substantial cuts in emissions in Norway is an important step in aligning Equinor’s business with the Paris agreement.
The inclusion of free to use operational data from Hywind Scotland. Equinor will present new corporate climate ambitions and a holistic climate platform. The Hywind Tampen investment will be close to NOK 5 billion. The approach to decarbonization and life cycle emissions at the Capital Markets Update in February.