Windfarm Delays Curb Equinor's Forecast for Renewables

Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Norwegian energy company Equinor (NYSE:EQNR) (Stavanger, Norway) said Wednesday that it expected to produce less renewable power from its portfolio due to delays at a windfarm off the United Kingdom's coast.

Equinor recorded 655 gigawatts (GW) in production from renewable energy resources during the second quarter, a 90% increase from the same period last year. The company attributed the increase in part to solar projects in the Brazilian market and its global offshore windfarms.

But in the wind market in the United Kingdom, the company is experiencing delays. Equinor said 27 wind turbines are either fully or partially installed for the "A" phase of the Dogger Bank windfarm, but the startup of the 1.2-gigawatt (GW) facility is delayed from late 2024 to 2025.

"Based on this the expected growth in power production from renewables assets in 2024 is now adjusted to be around 70% from the 2023-level," the company said.

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The three phases of Dogger Bank will combine for 3.6 GW of power. Some of the facility was connected to the grid in October. Once completed, the 277-turbine facility in the North Sea will be the largest offshore wind farm in the world.

Separately, the Norwegian Offshore Directorate (NOD), the nation's energy regulator, considers regional production to be low carbon, supported in part by using electricity to power offshore rigs rather than diesel. Emissions of carbon dioxide from production average 15 pounds per barrel, relative to a global average of about 37 pounds.

Elsewhere, the Norwegian energy company said it's made strides in carbon sequestration, with three licenses for storage in the nation's territorial waters.

Conventional energy performance for Equinor was solid, meanwhile. The company produced 2 million barrels of oil equivalent per day during the second quarter, about 3% better than the same period last year.

In Norwegian waters, the company reported gains from the start of production at the Breidablikk field, along with the Troll and Oseberg fields, where gas production increased 13% from year-ago levels.

NOD put total national oil production in June at 1.7 million barrels per day (BBL/d), better than expected, but 4.5% below year-ago levels. Gas production was 6.5% above the forecast for June and 45% higher than during the same period last year.

Equinor, meanwhile, kept its forecast for oil and gas production unchanged from 2023 levels. Capital expenditures are pegged at $13 billion for the year.

On finances, the company reported adjusted earnings before tax of $7.48 billion during the second quarter, compared with $7.8 billion a year ago. Lower natural gas prices were partially to blame for the decline in earnings.

With Europe looking for alternative supplies to fill the void left by the loss of Russian products due to sanctions, it's Norway that's helped support regional energy security since the war in Ukraine began in 2022.

"Field developments and high production contributes to energy security for Europe," Anders Opedal, the company's president and chief executive officer, said.

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