Equinor is stepping up investments in renewables and low carbon solutions to more than 50% of gross annual investments by 2030, as part of its strategy to accelerate its transition away from fossil fuels.
Equinor said it expects gross investments in renewables of around $23bn from 2021 to 2026, and to increase the share of gross capital expenditure for renewables and low carbon solutions from around 4% in 2020 to more than 50% by 2030.
The energy company has also pledged to reach a 20% reduction in net carbon intensity by 2030 and a 40% reduction in net carbon intensity by 2035, as part of its strategy.
These interim ambitions form part of Equinor’s aim to be a net zero company by 2050.
Based on early low-cost access at scale, Equinor expects to reach a installed renewables capacity of 12–16GW (Equinor share) by 2030.
Equinor is adjusting expected project base real returns to 4–8% and “remains determined” to capturing higher equity returns through project financing and farm downs.
Early access followed by targeted farm down is an integrated part of the value creation proposition, the company said.
So far, Equinor has divested assets of $2.3bn, booked a capital gain of $1.7bn and expects to deliver nominal equity returns in the range of 12–16% from the offshore wind projects with offtake contracts in the UK and US.
“Our strategy is backed up by clear actions to accelerate our transition while growing cash flow and returns.
“We are optimising our oil and gas portfolio to deliver even stronger cash flow and returns with reduced emissions from production, and we expect significant profitable growth within renewables and low carbon solutions.
“This is a strategy to create value as a leader in the energy transition”, said Anders Opedal, Equinor president and CEO.
By 2035, Equinor said it aims to develop the capacity to store 15-30 million tonnes of CO2 a year and to provide clean hydrogen in three to five industrial clusters.