Costs rise, Equinor cancels offshore wind projects in Spain and Portugal

A Norwegian energy company Equinor, which had previously announced its exit from Vietnam, has cancelled offshore wind projects in Spain, Portugal and may withdraw from other countries in order to reduce spending, according to an executive on Wednesday.

Paal Eitrheim is Equinor's director of renewables. He said: "We are leaving Vietnam, Spain, and Portugal."

The local media reported the departure from Spain and Portugal for the first time on Tuesday.

Equinor, a state-owned company, must prioritize capital investment more than ever before, given the rising costs of the offshore wind industry, due to inflation rates, supply-chain delays and high interest rates.

Eitrheim added that Equinor could withdraw from other markets.

Eitrheim didn't say how many capacity Equinor planned in Spain and Portugal.

He added that renewables are developing at a different pace, with solar and onshore wind being less affected than Equinor’s offshore wind business by cost increases.

Eitrheim stated that the company will maintain its goal of 12-16 gigawatts (GW) of renewable energy installed capacity by 2030. This is up from 0.9GW in 2023.

"I won't build 12 to 16 GW if it means sacrificing profitability."

He added that Equinor’s renewables division was still experiencing its busiest ever period.

The company and its partners SSE & Vaargroenn are building the first phase of Dogger Bank offshore Wind Farm in the UK.

The final investment decisions for its Empire Wind Project near New York, and two Baltic Sea Wind Farms in Poland are also close.

Eitrheim stated, "So this is what will build the next-generation of offshore wind growth for us." (Reporting and editing by Nora Buli)

(source: Reuters)