Yahoo Finance Equinor (EQNR) Discontinues Norway's Trollvind Offshore Project
Equinor ASA EQNR announced that it would delay its proposed Trollvind floating offshore wind farm project in Norway.
The decision was made on the basis of several challenges that the project was facing, including technology availability, rising expenses and timing challenges.
Trollvind, a proposed 1-gigawatt-floating offshore wind farm 65 kilometers west of Bergen, was expected for an investment decision this year. However, technological issues, rising expenses and time constraints led to the decision to delay the project.
Trollvind was a bold industrial plan to solve critical issues regarding the electrification of oil and gas installations. This will bring much-needed power to the Bergen area, while accelerating floating offshore wind power in Norway.
Trollvind had been considered a project outside of Norway’s plans for offshore wind tenders to be held in 2023. In June 2022, Equinor planned to develop the floating offshore wind farm to power its Troll and Oseberg oil and gas fields.
The project was initially expected to start in 2027. However, time has always been a challenge. Despite strenuous efforts, it has not been possible to mature Trollvind to the level needed to proceed at this time.
Equinor fails to see a way ahead to deliver on its original concept of having an operational wind farm well before 2030. The company says that the project is no longer commercially sustainable. Equinor mentioned that the knowledge acquired from working on the project would be applied to others as it seeks to develop floating offshore wind power at Utsira Nord and outside Norway.
Price Performance
Shares of EQNR have underperformed the industry in the past three months. The stock has lost 10.2% compared with the industry’s 5.4% decline.
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Zacks Rank & Stocks to Consider
Equinor currently carries a Zack Rank #3 (Hold).
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