Norwegian energy giant Equinor has launched a new climate roadmap to ensure a competitive and resilient business model in the energy transition, in line with the Paris Agreement.
The company aims to:
- reduce the net carbon intensity, from initial production to final consumption, of energy produced by at least 50% by 2050,
- Grow renewable energy capacity tenfold by 2026, developing as a global offshore wind major, and
- Strengthen its industry-leading position on carbon-efficient production, aiming to reach carbon neutral global operations by 2030.
- Reduce the net carbon intensity, from initial production to final consumption, of the energy produced with at least 50% by 2050.
- Grow renewable energy capacity tenfold to between 4 to 6GW by 2026, developing as a global offshore wind major.
- Reduce absolute emissions from operated offshore fields and onshore plants in Norway by 40% by 2030, 70% by 2040 and towards near zero by 2050.
- Reduce CO2-emissions per barrel oil and gas produced to below 8 kg by 2025 from operated fields.
- Carbon neutral operations globally by 2030.
- Eliminate routine flaring before 2030.
- Maintain methane emissions near zero.
- Continue to apply an internal price on CO2-emission of at least $55 per tonne in all our investment decisions.
- Continued support to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
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“Today we are setting new short-, mid- and long-term ambitions to reduce our own greenhouse gas emissions and to shape our portfolio in line with the Paris Agreement. 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.
“Equinor’s strategic direction is clear. We are developing as a broad energy company, leveraging the strong synergies between oil, gas, renewables, CCUS and hydrogen. We will continue addressing our own emissions in line with the emitter pays principle. 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 decarbonisation more broadly in line with changes in society,” says Sætre.
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 and natural sinks may be used as a supplement.
In 2026, the company expects a production capacity from renewable projects of 4 to 6 GW, Equinor share, mainly based on the current project portfolio. 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, dependent on the availability of attractive project opportunities.
The scale and composition of Equinor’s oil and gas portfolio, and the efficiency of its operations, will play a key role in achieving Equinor’s net carbon intensity ambition. Carbon efficient production of oil and gas will increasingly be a competitive advantage, and Equinor will seek to ensure a high value and robust oil and gas portfolio.
In January 2020, Equinor announced its 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 realised through electrification projects, energy efficiency measures and new value chains such as carbon capture and storage and hydrogen.
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.
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