BAKU, Azerbaijan, April 20. Equinor plans to spend 10 billion USD for 2022-2023 and 12 billion USD for 2023-2024 to increase share of renewable investments, which are expected to total 23 billion USD in the period 2021-2026, Trend reports with reference to the company.
“Our capital allocation to renewables and low carbon solutions will accelerate towards 2030. From a share of 4 percent of annual gross capex in 2020, renewables and low carbon investments is expected to grow to above 30 percent of annual gross capex by 2025 and to over 50 percent of annual gross capex by 2030,” Equinor said in its recent report.
In 2021, Equinor started a separate reporting segment for our renewables unit to recognise its strategic importance and materiality. In 2021, capital gains from renewables was 1.4 billion USD, a more than seven-fold increase from 2020, resulting primarily from profitable asset farm-downs.
“As we ramp up our investments in renewables and low carbon solutions, these businesses will provide an increasing share of revenue over time. Organic capital expenditure in oil and gas in 2022-2023 will total around 8 billion USD and is expected to remain at the same level towards the middle of the decade. This investment will result in the production of oil and gas for both traditional end-use applications and as inputs into decarbonised energy sources via hydrogen and ammonia and power generation and industrial processes with CCS.
To ensure we continue to retain competitive advantage in low carbon technologies and business models, 40 percent of our R&D budget will be allocated to these areas by 2025. To fund the transition of the company toward net zero and to ensure strong capital distribution through the journey, the optimised oil and gas portfolio will continue to be invested in to deliver cash-flow and value. Oil and gas projects coming on stream by 2030 will have a volume-weighted average breakeven under 35 USD per barrel,” reads the report.
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