11 October 2021

Equinor tables massive plan for investment in Norwegian self

Equinor wants the oil industry to invest NOK 350 billion in green restructuring of the Norwegian shelf, by reducing emissions and costs in oil and gas production, investing heavily in offshore wind, creating a market for hydrogen, and offering transport and storage of CO2. The plan that Equinor proposes develops on ideas presented in the Norwegian government's energy report, and a joint energy and industrial policy platform from the unions and industry. Equinor says that it is willing to invest NOK 100 billion in the plan, and wants the state to contribute around NOK 50 billion to assist with risk-sharing. Spokesman Eskil Eriksen said “There is a need for risk relief related to the development of floating offshore wind, hydrogen and the development of the offshore power grid.”

Of the NOK 350 billion, around NOK 220 billion would be invested in offshore wind. NOK 80 billion will be used for projects related to carbon capture and storage, and NOK 50 billion will be used for the development of hydrogen projects (TU, Dagens Næringsliv).

Reliance Industries acquires Norwegian REC Solar 

Reliance Industries, the Indian oil- and gas company has acquired REC Solar Holdings, the Norwegian solar power company for $771 million as part of Reliance’s increased focus on renewable energy. Reliance Industries had a turnover of $74.6 billion last year and has recently committed to the development of 100 GW green energy by 2030 (Altaposten). 

Norway’s has double-sided reputation in pursuing green transition

Norway is placed high on the ranking of countries closest to reach their sustainability goals (seventh place). However, Norway is also on the list of countries that have the largest negative impact on other country’s ability to reach their sustainability goals by 2030, which Kim Gabrielli, CEO at UN Global Compact Norway accredits to its high consumption and the indirect effects of their oil- and gas import on other countries.

This double-sided reputation is echoed internationally, according to Solveig Aamodt and Steffen Kallbekken at CICERO (Center for International Climate Research. On one hand, Norway has a positive reputation due to international climate initiatives such as the rainforest initiative. On the other hand, Norway’s lack of domestic efforts is put on display, referring to the elevated focus on oil. Aamodt claims that this will affect the nation’s credibility as it is clear that Norway is making money on oil (Dagbladet).

Icelandic e-methanol company listed on Oslo Stock Exchange

Carbon Recycling International (CRI), an Icelandic company that converts CO2 and H2 into “green” methanol is being listed on the Oslo Stock Exchange in 4Q21, trying to raise $30-50 million for its CO2 recycling project in China. CRI recently acquired the Chinese petrochemical company, Jiangsu Sailboat, and will use its technology to produce 100,000 tonnes of “green” methanol by recycling 150,000 tonnes of CO2 and 20,000 tonnes of H2 from Jiangsu Sailboat’s annual industrial production. The facility will be owned and run by Jiangsu Sailboat, with an expected cost of NOK 300 million and will operate in 2023. Further, CRI is in collaboration with Statkraft to develop the first commercial facility for the production of “green e-methanol” in Norway (Press release).

Fortum and Helen voice their opinion on nuclear power amidst talks of EU Taxonomy

Fortum is looking for transition opportunities on the energy market for their primarily coal-dependent operations. This comes amidst talks of the EU Taxonomy that decides on which investments that are considered climate friendly – a classification that nuclear power fails to receive. Among other reasons, EU’s ambiguity underlies Fortum’s need to decide on the future of the “Lovisa” nuclear plant next year, where the alternatives are to cease operations or apply for two new reactor facilities, according to Vesa Ahoniemi, Strategy Manager at Fortum. Anu-Elina Hintsa, Senior VP of Sales and Customer Service at Helen, an energy company, echoes this sentiment, saying that the EU needs to look at the green transition by creating a roadmap for current technologies to transition into ideal technologies (Kauppalehti).

What we’re reading

- Big banks resist most direct road map to net zero emissions (Financial Times)

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