Equinor has published plans to cut net carbon intensity of energy produced by at least 50% by 2050; grow renewable energy capacity tenfold by 2026; and establish carbon neutral global operations by 2030.
Equinor has published plans to cut net carbon intensity of energy produced by at least 50% by 2050; grow renewable energy capacity tenfold by 2026; and establish carbon neutral global operations by 2030.
‘It is a good business strategy to ensure competitiveness and drive change towards a low carbon future, based on a strong commitment to value creation for our shareholders,’ said Eldar Sætre, president and CEO of Equinor.
‘We are now looking 30 years into the future, and it is not possible to predict an exact shape and pace of the transition. But we know there will have to be significant changes in the energy markets, and our portfolio will change accordingly to remain competitive. We will produce less oil in a low carbon future, but value creation from oil and gas will still be high, and renewables give significant new opportunities to create attractive returns and growth.’
The ambition to reduce net carbon intensity by at least 50% by 2050 takes into account scope 1, 2 and 3 emissions, from initial production to final consumption. By 2050 each unit of energy produced will, on average, have less than half of the emissions compared to today. The ambition is expected to be met primarily through significant growth in renewables and changes in the scale and composition of the oil and gas portfolio. Operational efficiency, CCUS and hydrogen will also be important, and recognised offset mechanisms may be used as a supplement.
In 2026, Equinor expects a production capacity from renewable projects of 4 to 6 GW. This is around 10 times higher than today’s capacity, implying an annual average growth rate of more than 30%. Towards 2035, Equinor expects to increase installed renewables capacity further to 12 to 16 GW.
Meanwhile, carbon efficient production of oil and gas will increasingly be a competitive advantage. In January 2020, Equinor announced ambitions to reduce absolute greenhouse gas emissions from its operated offshore fields and onshore plants in Norway by 40% by 2030, 70% by 2040 and towards near zero by 2050. The ambition can be realized through electrification projects, energy efficiency measures and new value chains such as carbon capture and storage and hydrogen.
Sætre said: ‘As a pioneer in CCUS, Equinor is engaged in building a European value chain, capturing and storing CO2 from third-party industrial sites. This, combined with a strong position within natural gas, makes Equinor prepared for future growth in hydrogen, which offers large-scale opportunities for zero emission energy.’
Equinor is aiming to reduce the CO2 intensity of its globally operated oil and gas production to below 8 kg per barrel of oil equivalent by 2025, five years earlier than the previous ambition. The current global industry average is 18 kg CO2 per barrel.
It is also setting a new ambition to reach carbon neutral global operations by 2030. Remaining emissions will be compensated through quota trading systems, such as EU ETS, or offset mechanisms, in support of carbon pricing and carbon market mechanisms outlined in the Paris Agreement.
Equinor’s said its low methane emissions are industry leading at around 10% of the global industry average. The company aims to keep methane emissions at near zero and to eliminate routine flaring before 2030.
‘We are developing as a broad energy company, leveraging the strong synergies between oil, gas, renewables, CCUS and hydrogen. But, we can and will do much more. As part of the energy industry, we must be part of the solution to combat climate change and address decarbonization,’ Sætre said.
