Norwegian oil major Equinor launched a new climate roadmap to ensure a competitive business model in the energy transition, in line with Paris Agreement. Among others, the company aims to reduce the net carbon intensity of energy produced by at least 50% by 2050.
The three targets of Equinor are 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 position on carbon efficient production, aiming to reach carbon neutral global operations by 2030.
We are now looking 30 years into the future, and it is not possible to predict an exact shape and pace of the transition. Not for society and not for us. But we know there will have to be significant changes in the energy markets, and our portfolio will change accordingly to remain competitive,
…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.
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 availability of attractive project opportunities.
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.
This follows the company’s plan, announced in January 2020, to reduce absolute GHG 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.
The company 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.
In addition, it has set a new ambition to reach carbon neutral global operations by 2030. The main priority will be to reduce GHG emissions from own operations.
Remaining emissions will be compensated either through quota trading systems, such as EU ETS, or high-quality offset mechanisms.
The climate roadmap includes ambitions to keep methane emissions at near zero and to eliminate routine flaring before 2030.
Meanwhile, the news comes shortly after Danish offshore wind company Ørsted revealed its target to become carbon neutral by 2025 and reach net-zero emissions across its entire supply chain by 2040
See also:
First shipping firm claims net zero CO2 emissions as of 2020
