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The helicopter carrying the heads of Nato and the European Fee flew in thick cloud off the Norwegian coast, proper till it reached the Troll gasoline platform when the sky brightened up nearly miraculously.
Troll, Norway’s largest gasfield, has definitely proved its price to Europe in latest months, offering about 10 per cent of the gasoline wants of the continent, together with the UK. Ursula von der Leyen, president of the fee, and Nato secretary-general Jens Stoltenberg got here as a lot to thank Norway for growing the circulate of gasoline to get by means of a tough winter as ship a message to Russia to not attempt to sabotage any North Sea infrastructure.
The hosts on the platform — Norwegian prime minister Jonas Gahr Støre, and Equinor chief govt Anders Opedal — have been all smiles as they took their two company 300 metres beneath sea degree to the underside of one of many platform shafts. However behind the bonhomie, there are additionally massive variations in emphasis on what the power future would possibly seem like.
Because the begin of the Ukraine struggle, Norway has displaced Russia as Europe’s largest supply of gasoline. Together with its fundamental oil and gasoline group, state-controlled Equinor, Norway has argued more and more that it’s the democratic provider of option to the continent. For years, it had sought to place itself as having the ability to ship barrels of oil with one of many lowest carbon footprints on the earth (if that isn’t an oxymoron). Now, it has hit on this new argument to face out from extra autocratic suppliers reminiscent of Qatar and Saudi Arabia.
“It’s a actuality, it speaks for itself,” mentioned Støre because the North Sea wind buffeted the platform, pointing to figures exhibiting Norway now provides 30 to 40 per cent of Europe’s gasoline. “Norway is a Nato ally, a democratic accomplice and that brings stability and predictability each to Europe and the UK.”
Equinor could also be investing in wind energy and different inexperienced know-how, nevertheless it additionally sees a good future for gasoline and oil. Opedal pointedly mentioned on the platform that Troll would proceed producing past 2050, which is the goal date for the EU to be carbon impartial.
Oil and gasoline exploration in Norway continues nearly unabated regardless of a authorities settlement with a small leftwing get together to not open up any new areas throughout this parliamentary time period. In January, Oslo supplied a document variety of blocks in current areas within the Arctic for corporations to discover.
Europe is grateful within the brief time period for Norway’s elevated gasoline manufacturing previously yr. Von der Leyen repeatedly gave because of “our associates” in Norway whereas on the platform. However the EU’s overarching present objective is to realize web zero emissions and so it needs to speed up its push in the direction of inexperienced applied sciences, placing an emphasis on the likes of wind energy and hydrogen reasonably than gasoline within the mid to long run. “After all, the long run is renewables,” mentioned von der Leyen.
That results in some tensions within the discussions. Individuals concerned in negotiations between Norway and Europe say the EU seems reluctant to decide to giant gasoline volumes for an extended interval. Norway would ideally additionally prefer to get an EU imprimatur for its aggressive petroleum plans within the Arctic, recognising that now may be its time of most leverage given Europe’s thirst for gasoline.
Støre is eager to current a unique facet of Norway, too. His authorities speaks warmly about offshore wind, though Norway vastly lags behind different North Sea nations such because the UK and Denmark on this.
He additionally talks up the prospects for carbon seize and storage. An early Norwegian try at this failed. However a number of efforts together with one involving Equinor within the North Sea are actually going down. Lastly, Norway is pushing hydrogen. Ultimately, will probably be so-called inexperienced hydrogen made utilizing renewable power. However, earlier than that, Oslo is closely backing blue hydrogen the place gasoline is used and the carbon captured and saved.
“All that would be the future; gasoline is the transition know-how,” mentioned Støre. Inside just a few years, he added that it may be attainable to spy offshore wind farms inside a kilometre or two of Troll whereas carbon may be injected into the seabed the same distance away.
However standing on a platform that also earns about $80mn a day at present gasoline costs, there’s a sense that Norway has little incentive to show its again prematurely on the trade that made it wealthy, whilst curiosity in inexperienced power rises. There’s little doubt that this sector will keep profitable within the brief run however questions abound over whether or not Norway is transferring quick sufficient for its longer-term future.
Twitter: @rmilneNordic
E mail: richard.milne@ft.com
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