Equinor has ambition to reduce net carbon intensity by at least 50% by 2050

Equinor has launched its new climate roadmap, aiming to ‘ensure a competitive and resilient business model in the energy transition, fit for long term value creation and in line with the Paris Agreement’.

Under the new roadmap, the company plans to:

• Reduce the net carbon intensity, from initial production to final consumption, of energy produced by at least 50% by 2050. 
• Grow renewable energy capacity 10-fold by 2026, developing as a global offshore wind major.
• Strengthen its industry leading position on carbon efficient production, aiming to reach carbon neutral global operations by 2030.

‘Equinor’s strategic direction is clear. We are developing as a broad energy company, leveraging the strong synergies between oil, gas, renewables, CCUS and hydrogen. We will continue addressing our own emissions in line with the emitter pays principle. But, we can and will do much more. As part of the energy industry, we must be part of the solution to combat climate change and address decarbonisation more broadly in line with changes in society,’ commented Eldar Sætre, President and CEO of Equinor.

The ambition to reduce net carbon intensity by at least 50% by 2050 takes into account scope 1, 2 and 3 emissions, from initial production to final consumption. The ambition is expected to be met primarily through significant growth in renewables and changes in the scale and composition of the oil and gas portfolio. Operational efficiency, CCUS and hydrogen will also be important, and recognised offset mechanisms and natural sinks may be used as a supplement. 

In 2026, Equinor expects a production capacity from renewable projects of 4 to 6 GW. This is around 10 times higher than today’s capacity, implying an annual average growth rate of more than 30%. Towards 2035, Equinor expects to increase installed renewables capacity further to 12 to 16 GW, dependent on availability of attractive project opportunities.

The scale and composition of Equinor’s oil and gas portfolio, and the efficiency of its operations, will play a key role in achieving the company’s net carbon intensity ambition, noted Sætre. Carbon efficient production of oil and gas will increasingly be a competitive advantage, and Equinor will seek to ensure a high value and robust oil and gas portfolio.

In January 2020, the company announced plans to reduce absolute greenhouse gas (GHG) emissions from its operated offshore fields and onshore plants in Norway by 40% by 2030, 70% by 2040 and towards net zero by 2050. This is to be realised through electrification projects, energy efficiency measures and new value chains such as carbon capture and storage and hydrogen. Equinor is aiming to reduce the CO₂ intensity of its globally operated oil and gas production to below 8 kg/boe by 2025, five years earlier than its previous target. The current global industry average is 18 kg CO₂/boe.

Meanwhile, Equinor claims its low methane emissions are around 10% of the global industry average. The climate roadmap includes ambitions to keep methane emissions at near zero and to eliminate routine flaring before 2030.