Norwegian energy giant Equinor has opted to cancel all its offshore wind projects in Spain and Portugal only days after the company closed its Hanoi office and departed from Vietnam.
The decision comes as Equinor decided to reign in its spending and to prioritise capital. Another reason is the ever-rising costs tied to the offshore wind sector spearheaded by inflation and supply-chain delays.
These three countries could be followed by Equinor ditching other plans as well. Paal Eitrheim, Equinor’s EVP of renewables, told Reuters that the company has been pursuing early-phase opportunities in a series of markets around the world.
He added that, since the expenses are rising, operations are going to take more time in quite a few markets around the world and that there was a possibility of pulling out from more countries.
Regardless of exiting Spain, Portugal, and Vietnam in the same week, Equinor is still pursuing its target of 12-16GW of installed renewable energy capacity by 2030, up from 0.9 GW in 2023.
For the Norwegian firm things are still on the up as it is constructing the Dogger Bank A offshore wind farm in the UK and the Empire Wind project near New York. It also has two Baltic Sea wind farms in Poland close to final investment decisions.
Equinor has not left Spain and Portugal completely but Vietnam was a different story. The move which came amid political turmoil within the country, a power struggle within the Communist Party of Vietnam, and Equinor’s regular review of its portfolio of renewable assets was the first time the company closed an international office solely focused on offshore wind.
Vietnam has no offshore wind projects but has set a target for 6GW of installed offshore wind by 2030. These targets were set to reduce coal usage and reach net zero carbon emissions by the middle of the century.
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