Norway-based energy company Equinor announced a substantial reduction in its renewable energy and low carbon solutions investment and development plans, citing a need to “adapt to market conditions and further strengthen value creation for shareholders.”

As part of the adjustment, announced with the release of its FY 2024 results, the company said that it will slash its planned investment in renewables and low carbon solutions by 50% between 2024 – 2027 compared to its earlier outlook, and eliminate its goal to allocate 50% of gross capital expenditures to renewables and low carbon solutions by 2030.

On a conference call discussing the financial results, Equinor President and CEO Anders Opedal noted the “uneven pace of the energy transition,” adding that it was “moving fast in some markets, slow in most.” Outlining specific factors impacting the energy transition and the company’s plans, Opedal added:

“Inflation, interest rates, supply chain issues, and regulatory uncertainty reduces the pace of the energy transition. Segments like offshore wind and hydrogen are impacted. We adapt to these realities, both facing and prioritizing investments to maximize returns.”

Equinor established its energy transition strategy and goals in 2021, setting a series of goals to shift its capacity and investments towards renewable energy over the decade. Initial goals set by the company included increasing the share of gross capex for renewables and low carbon solutions from around 4% in 2020 to more than 50% by 2030, reaching renewable energy installed capacity of 12 – 16 GW by 2030, and developing the capacity to store 15 -30 million tonnes of CO2 per year and to provide clean hydrogen in 3-5 industrial clusters by 2035. The company also put in place goals to reduce Scope 1 and 2 CO2 emissions by 50% by 2030, and to reduce net carbon intensity across Scope 1,2, and 3 emissions by 20% by 2030 and 40% by 2035.

In the new update, Equinor retired its 50% gross capex goal, and lowered its 2030 renewable energy installed capacity target to 10 – 12 GW, while maintaining an updated goal to store 30-50 million tonnes of CO2 per annum by 2035. Additionally, the company said that it was on track for its 2030 Scope 1 and 2 emissions reduction goal, but lowered its ambition on net carbon intensity, with a new range of 15-20% in 2030 and 30-40% in 2035 introduced.

Opedal said:

“To underline that value creation is at the core of our decision-making, we now retire the gross capex ambition. In our view, the energy transition must be balanced and financially sustainable.”