Equinor logo and stock graph are seen displayed in this illustration taken, May 3, 2022.
The oil and gas industry remains Norway’s largest source of carbon emissions, accounting for about one-quarter of the country’s total. Approximately 80% of emissions from the sector come from gas turbines that supply power to offshore installations. Using renewable electricity from land-based sources to replace these turbines has been one of Norway’s main strategies for reducing industrial emissions.
Equinor confirmed that it would no longer pursue the electrification of its Snorre A and B, Heidrun, Aasgard B, and Kristin platforms. However, it will continue projects at the Grane and Balder fields. The company said: “The costs of electrifying Snorre and the Halten area have become so high that the projects are no longer sufficiently profitable, and we therefore recommend discontinuing them.”
The company did not disclose the full cost estimates but indicated that expenses have exceeded levels justified by Norway’s carbon tax, which is projected to reach 2,400 Norwegian crowns ($237.33) per tonne by 2030, in 2025 money. Norwegian news outlet E24 was the first to report on Equinor’s letter.
The move means Equinor will not meet the government’s non-binding target to reduce emissions from offshore petroleum production by 50% by 2030. Instead, the company now expects to achieve a 45% reduction. Equinor estimated that the cancelled projects would have reduced 710,000 tonnes of CO? emissions annually, while electrification of the Grane and Balder fields is still expected to cut about 380,000 tonnes per year.
Vaar Energi, Equinor’s partner in several of the affected fields, said it supports the decision, noting that while the electrification of Balder and Grane remains “challenging,” progress is continuing.
Lars Haltbrekken, deputy head of Norway’s newly elected parliamentary Energy Committee, said to Reuters: “We will be unable to reach our climate goals if the largest polluter doesn’t cut its emissions.”
Another partner in the Snorre field, Harbour Energy, estimated that electrification measures would cost as much as 5,000 crowns per tonne of carbon reduced. A Harbour spokesperson stated: “Whilst electrification can play a role, this should not be at any cost.”
Equinor’s decision reflects the growing financial and technical challenges faced by the offshore energy sector in implementing large-scale electrification. The company continues to focus on optimizing its remaining emission reduction projects while ensuring long-term economic viability in its operations. The outcome of this adjustment is expected to influence future investment decisions across Norway’s oil and gas industry.
