Equinor reduces renewable energy targets due to industry headwinds

Equinor, a Norwegian energy company, has announced that it will reduce its ambitious targets for developing renewable energy by 2030. This is the latest European energy firm to lower green goals as the renewables market dries up.

Equinor has followed in the footsteps of BP and Shell who have cut back on plans to expand renewable energy. This includes offshore wind where they had hoped to use their oil and gas experience at sea to help them.

Investors' patience has been tested by the offshore wind industry, which has faced a number of challenges, including rising interest rates, inflation in costs, supply bottlenecks and regulatory changes.

In a Wednesday strategy update, Equinor stated that the installed capacity for renewables has been reduced to 10-12 gigawatts by 2030. Equinor had set a 2030 target of 12-16 GW, but this is lower than the 2021 target.

It said that the company did this to better adapt to market conditions, and to create value for its shareholders.

Equinor announced that the new target included Equinor’s 10% stake in Orsted, Denmark’s largest offshore developer, and its 16.2% stake in Scatec.

Equinor also announced that it is abandoning its previous target of allocating 50% of capital expenditures in 2030 to renewables or low-carbon solutions.

Equinor, on the other hand, reported slightly higher profits than expected for the final quarter in 2024 and increased its oil production forecast.

(source: Reuters)