ETN Christmas Seminar in DNB Arena

On December 19th, DNB hosted and sponsored Energy Transition Norway’s Christmas seminar, bringing together board members, members of the Technical Committee, and companies within the cluster.

The event took place at DNB Arena and a Christmas dinner and a concluding hockey game. Gry Berit Lundal at DNB, responsible for energy companies in the region, hosted the evening.

The Supplier Industry as a Driving Force

Atle Blomgren, senior researcher at NORCE started with a status of the challenges the energy industry in Rogaland is facing. He highlighted the widespread pessimism surrounding offshore wind, which is heavily subsidized and, according to critics, may never become profitable - noting the strong competition from China and the slower-than-expected development of renewable energy.

Blomgren also addressed several challenges facing energy-intensive industrial projects such as carbon capture and storage (CCS), including long and complex licensing processes, resistance from local communities with "not in my backyard" attitudes, and cost increases that have surpassed expectations.

The lack of established markets and customers for technologies like green hydrogen, the uncertainty about whether CO2 taxes are high enough to incentivize the use of projects like Northern Lights, and the need for temporary subsidies to make many initiatives viable, was also pointed out.

Not the most positive of backdrops, as Chair Tor Arnesen said in his welcoming remarks.

But despite these obstacles, Blomgren emphasized Norway's robust supplier industry, challenging the perception that the development of green industry is entirely dependent on increased power capacity.

- The Rogaland supplier industry is already a significant success story, with data from Eksfin showing substantial exports within offshore wind, independent of the oil and gas sector, he said.

His key message was that the Norwegian supplier industry will continue to play a crucial role in maintaining activity, fostering new partnerships, and bridging the gap toward the energy landscape of the future.

The Path Ahead for the Energy Sector

Eimund Nygaard, CEO of Lyse, provided an overview of the current energy situation in Norway, underlining the importance of electrification in meeting emission targets. He emphasized that digitalization and access to more renewable energy are key factors for a successful energy transition.

If we are to reach our emission targets, we need to electrify everything that can be electrified. But to achieve this, we need to digitalize. And if we are to do that, we need more renewable energy, because without making this transition sustainable, it simply won’t work, said Nygaard.

Panel Debate: What Should Be Prioritized?

The seminar continued with a panel debate moderated by Tor Arnesen, Chairman of Energy Transition Norway. He pointed to challenges such as inflation and uncertain financing, which have led to many projects in batteries, hydrogen, and offshore wind being either canceled or put on hold.

He posed the question: With the somewhat less rosey picture that was pointed out by Blomgren - what should now be prioritized in the energy transition?

Challenges and Solutions

Ståle Tungesvik, Vice President of Security and Renewable Energy at Equinor and board member in Energy Transition Norway since 2018, emphasized the need for collaboration, predictability, and long-term perspectives. He pointed to challenges related to the lack of customers and contracts worth billions, which are essential to making large-scale investments profitable. He highlighted initiatives in wind power, the CCS project Northern Lights, and hydrogen, while noting that progress is moving too slowly.

Claire Dissel, Technology Manager at Norske Shell and member of Energy Transition Norway's Technical Committee, pointed to similar challenges and stressed the importance of regulatory facilitation and subsidies for early-stage projects, along with profitability. She shared that Shell is exploring opportunities in wind, hydrogen, and CCS.

Øystein Stjern, Deputy CEO at IKM, shared IKM’s ambitions to build a renewable energy division within the company. He highlighted that the company is also focusing on markets outside Norway, such as Taiwan and the Netherlands, where they see greater profitability in wind power.

Finally, Ingvild Meland, COO at Nysnø Climate Investments, described their investment strategy, focusing on early-stage technology projects with low climate impact and acceptable risk profiles. She also encouraged established companies to be bold and include smaller companies in their procurement processes, urging stakeholders to think innovatively and involve younger companies in their strategies.

Closing

The evening concluded with a clear call for collaboration, innovation, and openness to new solutions.

Energy Transition Norway is very greatful to DNB for facilitating an inspiring and important event, which, as allways, give regional stakeholders the opportunity to share experiences and shape the path forward in the energy transition.