Question 1

Will electrification of the NCS displace mainland industry?

Accepted Answer

The electrification of long-life installations in the oil and gas industry corresponds to about ⅓ of the total increase in industrial power consumption up to 2030.

Equinor agrees that Norway must be able to develop enough green energy to further develop both the continental shelf and mainland industry. It's important that the government ensures that sufficient power distribution is built in Norway, so that we avoid internal bottlenecks that hinder important business development and value creation.

Equinor supports increased power production in Norway, and will contribute with increased power production. In Norway Energy Hub, Equinor has recommended national development of 10 GW (45 TWh) of offshore wind by 2035. Together with other measures, this can provide Norway the power we need in the decades to come.

Electrification on the Norwegian continental shelf is more than a climate measure; it is an important part of the energy transition in Norway and creation of the jobs of the future. The large fields we are  planning to electrify are highly profitable and will create value for society for many years to come.

Together with carbon capture and storage, electrification will enable us to produce ‘blue’ hydrogen. This is important because the demand for decarbonised hydrogen in Europe will increase in the future.

Question 2

Will electrification of the NCS drive electricity prices upwards?

Accepted Answer

All measures that require more electricity can, in theory, contribute to increasing electricity prices. The electrification of installations in the oil and gas industry corresponds to about ⅓ of the total increase in industrial power consumption up to 2030.

Regardless of electrification on the NCS, it is important that the government facilitates increased power development, for example through the opening of more areas for offshore wind, while the Norwegian Water Resources and Energy Directorate (NVE) and Statnett must ensure sufficient grid capacity.

In Norway Energy Hub, we see a potential for 10GW or 45 TWh of offshore wind in Norway in the period 2030-35. This corresponds to four times the increased need for electricity on the shelf, and will account for about ⅓ of today’s power production in Norway — power that will be needed in the electrification of industry and society.

Question 3

Is electrification of the NCS really an effective climate measure?

Accepted Answer

Electrification is one of the most effective measures for reaching Norway's climate goals. If we were to cut the same amount of greenhouse gas emissions from other sectors, it would cost significantly more with potentially more negative consequences for society than electrification of installations on the NCS.

Equinor and our partners will invest NOK 50-75 billion to reduce emissions up to 2030. There will still be substantial petroleum revenues. Our fields and facilities in Norway could generate billions in revenues for society.

Electrification and other measures will also mean new opportunities for the supplier industry and more industrial jobs both on the shelf and on land.

Question 4

Does electrification cut emissions globally or just in Norway?

Accepted Answer

Electrification on the Norwegian continental shelf cuts emissions in Norway and globally. When we produce 10 TWh of energy from gas turbines offshore (electric power, mechanical energy and waste heat used in the process systems), we emit more than 5 million tonnes of CO2. Producing the same amount of energy using Norwegian gas in the EU will emit only half the amount of CO2 on average — about 2.5 million tonnes.

By replacing inefficient gas-powered electricity generation offshore with clean power from shore, more than 25% of Norway's greenhouse gas emissions can be cut. Offshore, the energy efficiency of power production is only about 25-35 per cent, whereas in Europe, efficiency is about 60 percent if used in a gas-fired power plant, and close to 100 percent when used for heating and industry. Replacing gas turbines, either completely, or partially, with electric power therefore provides increased energy efficiency and thus major climate benefits.

Electrification also has a global effect through the EU cap-and-trade system. National measures that lead to an increase in the surplus of quotas may therefore lead to more quotas being deleted in the EU’s deletion mechanism, which in turn contributes to reduced emissions over time.

Question 5

Could Equinor buy quotas in the EU cap-and-trade system rather than electrify the NCS?

Accepted Answer

Equinor assesses each emission point to determine whether electrification, the purchase of allowances in the European cap-and-trade system or other climate measures can best contribute to reducing emissions. Put simply, this will be about how we can get the most climate effect for the lowest possible measure cost.

If Equinor today stops all electrification projects on our operated fields and licences, it will entail significant additional costs for the partners to find alternative solutions, and for Norway through the purchase of EU emission allowances, which are announced to be reduced in the years to come.

If we assume that the current EU allowance price will be the level one can expect in the future, stopping all future electrification projects on the Norwegian continental shelf will reduce revenues from the Norwegian shelf by up to approximately NOK 60 billion up to 2040.

Here’s why electrification is an important climate measure

Highlighted electification projects

Hywind Tampen

Gina Krog

Why is Snøhvit Future so important?

Why are we electrifying some of our plants and platforms?

Questions and answers about electrification

70%

Near zero

10%

Facts and figures about electrification of the Norwegian continental shelf

What is Equinor doing in electrification?

Governmental green light for Snøhvit Future

The future of the LNG plant at Melkøya

Development plans for Troll West electrification handed over to the authorities

Partial electrification of Sleipner approved

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Further reading