Equinor revealed its goal of becoming a net-zero energy company by 2050. Emissions from development and final energy consumption are included in the ambition.
It sets a clear strategic course and demonstrates the continued commitment of Equinor, in support of the Paris Agreement, to long-term value development.
“Equinor is committed to being a leader in the energy transition. It is a sound business strategy to ensure long-term competitiveness during a period of profound changes in the energy systems as society moves towards net zero. Over the coming months, we will update our strategy to continue to create value for our shareholders and to realize this ambition.”Anders Opedal, CEO and president of Equinor.
Equinor revealed its plans earlier this year to reach carbon neutral global operations by 2030 and to reduce Norway’s absolute greenhouse gas (GHG) emissions to near zero by 2050. At the same time, Equinor has outlined a value-driven strategy for substantial renewable energy growth, as well as a new target for net carbon intensity. The secret to reaching net-zero emissions would be to continue to deliver on short and mid-term ambitions.
“Equinor has for years demonstrated an ability to deliver on climate ambitions and has a strong track record on lowering emissions from oil and gas. Now, we are ready to further strengthen our climate ambitions, aiming to reach net zero by 2050.”Anders Opedal, CEO and president of Equinor.
From 2019 to 2026, Equinor expects to produce an average annual increase in oil and gas production of about 3 percent. In desirable areas with significant value creation opportunities, Equinor is well placed with world-class global assets.
Equinor will continue to grow competitive and resilient projects while preserving industry-leading recovery rates, unit costs and carbon performance by optimizing its portfolio through financial discipline and prioritization.
At the Norwegian Continental Shelf (NCS), the net-zero goal will reinforce future productivity and value development. The Equinor plans at the NCS for manufacturing, growth and exploration remain firm.
From around 2030 onwards, Equinor is planning for an estimated gradual decline in global oil and gas demand. Value creation, not substitution of volume, is and will direct Equinor ‘s decisions. Equinor plans to produce less oil and gas in the longer term than it does today.
Renewables would be an critical growth field for developing Equinor as a broad-based energy business. Equinor has previously set ambitions for profitable growth in renewables and is targeting 4-6 Gigawatts (GW) of production potential by 2026 and 12-16 GW by 2035.
Equinor is now preparing to expand its wind farm acquisition to boost sustainable growth and continue to exploit its leading role in offshore wind power. Beginning in the first quarter of 2021, Equinor will create renewables as a separate reporting category.
A well-functioning market for carbon capture and storage (CCS) and natural sinks, as well as the production of competitive hydrogen technologies, is needed to achieve net-zero emissions. Equinor is well placed to provide low-carbon solutions and develop zero-emission value chains, building on its oil and gas expertise.
Via projects like Northern Lights, which aims to store CO2 from industrial sites across Europe, Equinor is driving the development of these technologies. Equinor also expects that a rising share of petrochemicals will be used for oil and gas by 2050.
“Climate change is a shared challenge. The combined efforts of governments, industries, investors and consumers are crucial to reaching net-zero emissions, for Equinor and for society. Together, we can overcome technological and commercial challenges, cut emissions, and develop CCS and zero-emission value chains for a net-zero future.”Anders Opedal, CEO and president of Equinor.