Navigating the energy transition

She has knowledge, she has optimism, and she has a clear direction. Even so, our strategy director Henriette Undrum has to accept that our path is made by walking.

She’s right in the middle of it all. Henriette Undrum is responsible for setting Equinor’s course at a time when changes are happening suddenly and unexpectedly, and demand for energy is ever-increasing. Not only that, but the renewables industry is experiencing headwinds, and new energy solutions and markets have to be developed before the customers are in place.

The world’s appetite for energy continues to increase year on year — and yet, at the same time, energy systems must change if the world is to succeed in slowing the pace of global warming. Oil and gas must be gradually phased out, and renewable energy phased in. What’s more, we need to find solutions for handling the CO₂ emissions that can’t be cut. The task is enormous.

“The transition we are facing can be compared with carrying out a lifesaving heart transplant, while running a marathon with the patient,” says Henriette.

In many ways, the world’s energy system can be seen as the heartbeat of global societal development — a transformation that is essential for lifting people out of poverty and ensuring better standards of living. Energy is not only needed for transport and services, but also for producing everyday items like food, clothing, lighting and heating (not to mention cooling), as well as materials and products of all kinds. Today’s energy system has been built up over more than a century, and yet, during the next twenty to thirty years, it must undergo total change.

Henriette’s years at Equinor have involved a variety of roles, from field development to daily operations and improvements on offshore installations. She has worked with policymakers and helped develop technologies and build expertise that now form the foundation of Equinor’s focus on renewable energy and carbon capture and storage. All of this experience now serves her well as she charts the course for this ongoing, extensive, and long-term transformation.

“The world needs an energy transition because today’s energy system is responsible for high CO₂ emissions, one of the main drivers of climate change. At the same time, we need stable and secure energy at an affordable price.”

With the goal of a more electric-based energy system, a key dilemma emerges: should we phase out fossil energy before new solutions are fully developed, or should we aim to balance the system by integrating new sources as quickly as possible while reducing fossil use in step with available alternatives? Henriette firmly believes in the latter, despite the resistance and criticism that both she and Equinor may face. She feels it’s time to present a more nuanced picture.

“There has been a mistaken belief that the green transition would be ‘simple and inexpensive.’ Unfortunately, it’s proving to be both costly and challenging,” Henriette says.

Building a ‘new’ energy system requires enormous investments, and the need for change touches every part of society. It’s easy to think the transition is simply about replacing today’s fossil energy production with renewables. This is important, but the challenge lies in the fact that electricity currently only meets twenty percent of global energy consumption. The real challenge is to transform all areas that cannot yet rely on electricity. Difficult sectors include high-temperature industrial processes, long-distance transport, and building construction and operation. Everything points to electrification being the primary solution, combined with CO₂ capture and storage.

“The transition will demand much more of us than most people have realised, and this message is gradually starting to sink in,” says Henriette.

For Equinor, it’s about making the greatest impact possible, and that means large-scale industrial solutions. While she understands that some people find it problematic for a company with a portfolio still largely based on oil and gas to engage in the energy transition, Henriette hopes more people will start to appreciate just how much Equinor is already contributing.

“We are already a major industrial player, so leveraging that power and potential to create the large-scale solutions we need is crucial,” she says.

She has a point; a lot is already happening. From 2022 to 2023, Equinor doubled its renewable power production, and further increases are expected in the coming years. Henriette speaks passionately about the ‘S-curve’ that emerges as projects long in the making suddenly start to gather momentum. Many projects are set to accelerate in the coming years, which makes her more optimistic.

“We have set a clear direction, and we are well underway. Our projects show that we have the right expertise and can work well together. Our willingness and ability to find new solutions make me hopeful. At the same time, I am impatient because there is no doubt we need to accelerate the pace of the transition significantly—both as a company and globally—if we’re to meet the deadline. No-one can solve the climate problem on their own.”

As with sailing, it’s all about catching the wind in the sails and setting the course to the destination, no matter how challenging the next stage may be. For Henriette, a big part of the job is recognising the complexity of it all.

“We have a responsibility not to offer simple answers where simple answers don’t exist.”