Equinor said it will increase investments in renewables and low-carbon solutions, aiming to reach a 40% reduction in net carbon intensity by 2035.

By 2030, more than 50% of gross annual investments will be directed to renewables and green solutions, the Norwegian oil and gas major said on Tuesday.

The company expects capital expenditure of around $23bn from 2021 to 2026, and to reach an installed capacity of 12 – 16 GW (Equinor share) by 2030. 

In addition, by 2035, Equinor’s ambition is to develop the capacity to store 15 – 30 m tonnes of CO2 per year and to provide clean hydrogen in 3-5 industrial clusters.

As for its oil and gas business, Equinor estimates it will generate a free cashflow after tax and investments of $45bn from 2021 to 2026.

“We are optimising our oil and gas portfolio to deliver even stronger cash flow and returns with reduced emissions from production, and we expect significant profitable growth within renewables and low carbon solutions,” said Anders Opedal, president and CEO of Equinor.

“We will continue to cut emissions, and in the longer term, Equinor expects to produce less oil and gas than today, recognising reducing demand. Significant growth within renewables and low carbon solutions will increase the pace of change towards 2030 and 2035,” he added.