Equinor ESG Day 2024
Equinor held its 2024 ESG day on Monday, largely reiterating what we saw during its FY23 results and Capital Markets day, but with a few major takeaways.
Our view
Equinor’s ESG day provided some good detail on the build-out of its renewables business, however the company still lacks the necessary disclosure to verify the progress of low carbon capex targets (50% by FY30). Additionally, Equinor highlighted how crucial CCS is to meet its FY35 NCI target (-40% from FY19), with 30-50 Mtpa of transport and storage capacity potentially accounting for half of NCI reductions.
Key takeaways
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The ESG update highlighted how crucial CCS will be in Equinor’s transition strategy.
The company previously announced an increased ambition for CO2 transport and storage capacity to 30-50 Mtpa by FY35 during its Capital Markets day, up from 15-30 Mtpa previously.
The company has clarified that CCS will be pivotal in its -40% NCI target between FY19-35.
Equinor’s NCI methodology includes negative emissions associated with carbon capture, utilisation and storage for third parties. We estimate nearly half of Equinor’s FY35 target is dependent on CCS.
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The company reiterated its renewables installed capacity target of 12-16 GW and 35-60 TWh of production by FY30.
For the first time, we got a good view of its total renewables pipeline to include 2023 acquisitions such as BeGreen and Rio Energy, >22.6 GW.
Equinor said it expects to install 1-2GW of new capacity every year.
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Once again, Renewables & Low carbon solutions “gross capex” was simply reported as 20% of group in FY23.
No values were provided, and numbers do not reconcile to capital expenditure included in Equinor’s results, making it difficult to assess progress against its FY30 target (50% of gross capex).
