Norwegian energy company Equinor announced a new review of its corporate strategy, eliminating its target for installed renewable energy capacity by 2030. The decision comes alongside adjustments to its investment plans and an improvement in its oil and gas production forecasts for the coming years.
Furthermore, the company replaced its renewable energy target with a broader energy generation perspective that incorporates both renewable projects and conventional electricity production technologies. This move reflects a trend also followed by other major international energy companies amidst an environment marked by higher costs and profitability demands.
A strategy focused on multiple energy sources
According to Equinor CEO Anders Opedal, the company does not intend to completely replace its traditional business with one based exclusively on renewable energy. On the contrary, it seeks to simultaneously develop its oil and gas, power generation, renewable energy, and low-carbon solutions activities.
Likewise, the executive acknowledged that it had been evident for several years that the company would have difficulty reaching its target of 10 to 12 gigawatts of installed renewable capacity by 2030. The increase in costs in the sector and the reduction of economically viable opportunities led to a progressive review of the project portfolio.
The energy sector adjusts its transition expectations
Equinor’s decision comes amid a trend where several international companies have reconsidered the pace of their energy transition plans. Companies like BP and Shell have also scaled back some of their renewable energy targets to prioritize projects with higher financial returns.
Over the past few years, the volatility of energy markets, cost inflation, and regulatory challenges have forced many developers to rethink investments in areas such as offshore wind energy and other renewable generation technologies.
In the case of Equinor, the company had previously reduced its targets related to the expansion of renewable capacity and its image within the offshore wind market.
Lower relative investment but higher electricity production
Although the company plans to allocate only around 10% of its capital investment to its energy division, it maintains expectations of growth in electricity production.
The strategy anticipates that energy generation will exceed 20 terawatt-hours by 2030, driven primarily by projects already under construction. This growth will be supported by a combination of renewable assets, gas-fired generation, and integrated energy storage systems within its new Energy business area.
The division, created in 2025, brings together operations in renewable energy, electricity generation using gas, energy storage and commercial activities associated with energy supply.
Carbon capture conditioned on market development
Furthermore, Equinor also decided to abandon its goal of transporting and storing between 30 and 50 million metric tons of carbon dioxide annually by 2035.
The company stated that it has sufficient capacity to reach those levels if market demand evolves favorably. However, its current strategy prioritizes developing projects based on specific business opportunities rather than predetermined targets.
With this strategic update, Equinor seeks to maintain a balance between hydrocarbon production, electricity generation and low-emission technologies, adapting its investments to the economic conditions currently facing the global energy sector.
Source: Reuters
Photo: Shutterstock
