Nordic Green News – 10 September, 2020

Equinor sells 50% of offshore US wind project to BP

In a sign of just how quickly the global energy industry is transforming, BP has purchased half of an Equinor wind project, where BP is essentially coming in as the minor party to learn from Equinor.

 

Equinor has entered into an agreement with BP to sell a 50% stake in Empire Wind and Beacon Wind on the east coast of the United States for a total price of $1.1 billion. Equinor, which has invested $200m into the development will therefore book a profit of $900m, surprising analysts with the profitability of its green strategy. The two projects are;

1. Empire Wind - located 15-30 miles southeast of Long Island and covering an area of ​​80,000 acres with ocean depths between 65 and 131 feet. The license was purchased in 2017 and is being expanded in two phases with the potential for a total installed capacity of over 2 GW.
2. Beacon Wind - located 60 miles east of Montauk Point and 20 miles south of Nantucket and covering an area of ​​128,000 acres. The license was purchased in 2019 and has the potential to be expanded with a total capacity of over 2.4 GW.

 

Pål Eitrheim, Executive Vice President for New Energy Solutions at Equinor, commented “The transaction with BP shows our ability to create value through the development of offshore wind projects. Over the past ten years, Equinor has built leading offshore wind expertise. We have ensured access to attractive offshore wind areas and have developed a significant project portfolio. By optimizing ownership interests and bringing in new partners, we can realize value and increase financial flexibility to finance further growth.”

 

Giulia Chierchia, Executive Vice President Strategy and Sustainability at BP wrote on LinkedIn, “Just last month we shared our new strategy to transition from an IOC [International Oil Company] to an IEC [International Energy Company] delivering solutions for customers… Today we announced a big move towards those aims. We’re forming a new strategic partnership with Equinor. This is BP’s first venture into offshore wind – so we are very excited to be working with Equinor who are well-established and respected in this space.”

 

It is reported that both companies hope to expand their collaboration further in a global market that is expected to grow to between 600 and 800 GW worldwide by 2050. Equinor has previously announced ambitions for growth in renewables to four to six GW by 2026 and to between 12 to 16 GW by 2035, as well as indicating expectations of an acceleration of these ambitions. Equinor is building significant positions in its core areas for offshore wind - the North Sea, the USA and the Baltic Sea - at the same time as the company is working on growth opportunities in other selected markets for both bottom-fixed and floating offshore wind.

 

Orsted picks former Lego executive Mads Nipper to be new CEO

Mads Nipper will start as the new CEO of the Danish energy company Ørsted - previously called Dong Energy. Nipper is currently CEO at Grundfos, the Danish pump manufacturer. Prior to that he held several senior positions at Lego. Thomas Thune Andersen, Chairman of Ørsted said “With Mads Nipper's strong focus on sustainability and the green agenda, strong personal leadership, great management experience and excellent results from leading global companies, the board is convinced that he is the right person to lead Ørsted in the next phase of our exciting journey.” The FT remarked that Nipper was “one of Denmark’s leading corporate advocates of sustainability”, who shot to prominence as one of the driving forces behind the resurrection of Lego after the Danish toymaker’s brush with financial collapse in 2003.

 

Norwegian e-taxis to trial wireless charging

Next year, 25 of the Norwegian capital’s electric taxis will be fitted with under-vehicle technology that will recharge them wirelessly on a taxi rank embedded with charging pads at Oslo’s central railway station. The test fleet will be Jaguar I-Pace cars, in a trial that authorities hope will be rolled out across the country as part of a push to make all of Norway’s vehicles electric.

 

Advanced Soltech examines possibilities to raise capital up to SEK 150 million

Swedish solar cell-maker, Advanced Soltech, is looking to raise capital ahead of its planned IPO, thanks to business opportunities in China. The new capital will be invested into roof-based solar energy solutions. CEO Max Metelius says that “China will continue to recover after the corona pandemic and we see a strong demand for our offer, with many business opportunities in response.” Advanced Soltech operations are through its wholly owned local subsidiaries and in Longrui Solar Energy (Suqian) Co. Ltd. The business model consists of financing, installing, owning and managing solar energy installations on customers' roofs in China. The customer does not pay for the plant, but instead undertakes to buy the electricity that the plant produces under a 20-year agreement. 

 

Cramo Eco Choice products towards more environmentally friendly construction

Cramo, a Finnish manufacturer of construction equipment, has launched the Cramo Care, Eco Choice product family, which consists of lower-emission and quieter products than traditional machines and equipment. The Eco Choice product family currently includes earthmoving excavators and wheel loaders, as well as hoisting and handling equipment. Cramo is actively working to increase the share of these products in the leased equipment, and the range will also be supplemented with new environmentally friendly products in the coming years.

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