Equinor Bets on Offshore Wind as European Oil Firms Push Green Agenda

Norway’s Equinor is focusing its green efforts on offshore wind, a goal it is already on its way to achieve, but some investors are concerned about the impact this shift will have on the company’s bottom line.

European oil and gas companies are diversifying their portfolio to include less-emitting sources of energy as a result of the Paris 2015 agreement, which outlines a shift from fossil fuels this century.

Equinor, formerly Statoil, is betting on offshore wind, leveraging its expertise in operating offshore platforms and its ability to scale up small projects into industrial ones.

Last year Equinor opened the first floating offshore wind farm, off Scotland.  And on Tuesday it said it was planning to use floating wind turbines to power offshore oil installations, in a world first.

“I think the floating concept is very fascinating.  We have a leading position there right now,” Equinor CEO Eldar Saetre told Reuters.

Equinor also plans to build three large, bottom-fixed wind projects off the coasts of the United States, Poland and Britain.

The three projects alone could cost around $11.7 billion to build at current prices, which already fulfills the announced budget of 100 billion crowns, or $11.8 billion, according to a Reuters estimate.

By comparison, Repsol has gone into operating hydropower plants, Total is developing solar power and owns a battery producer, while BP bought Britain’s largest electric vehicle charging company.

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