De live r ing a s a fe a nd profitable renewable business Kristian Holm Head of Wind Turbine Technology Shaping the future of energy
• Strategic p r inc ip le s A future-fit p o r t fo lio Ena b le r s
Cash generation New energy solutions Norwegian continental shelf Safe and secure c a p a c it y a t a ll t ime s Create a material new Build on our unique position operations ind us t r ia l p o s it io n t o ma ximis e a nd d e ve lo p lo ng -t e r m va lue
Technology Ca p e x fle xib ilit y Alwa ys sa fe and inno va t io n Hig h va lue Capture value Lo w carbon Empowered from cycles people
Midstream and marketing Int e r na t io na l o il & g a s Secure premium market Deepen core areas and Lo w-carbon Stakeholder access and grow value develop growth options advantage engagement creation through cycles
Corporate presentation a va ila b le here: LINK
2 | New Energy Solutions Equinor’s renewables strategy
Global offshore 1 wind ma jo r Accelerate offshore wind business to close gap(s) a nd a c hie ve s c a le in 4 -5 c lus t e r s Ma r ke t -d r ive n power producer
Focus on 3-5 attractive markets with a selective approach fitting each ma r ke t , c a p it a lizing o n a b ilit y t o t a ke me r c ha nt r is k
Diversify offshore wind business 2 to de-risk and pursue additional growth
3 | New Energy Solutions Why renewables and lo w carbon?
Capturing new opportunities in the energy transition
Business drivers Challenges
Tr a ns it io n Growth Ca p a b ilit ie s Re s ilie nce Sca le Returns Co mp e t it io n Culture
4 | New Energy Solutions Key drivers for value creation
G lo b a l o ffs ho r e wind ma jo r Ma r ke t -driven power producer Low carbon solutions provider
Clus t e r s O &M Financing, Technology Trading , Deep market Up s t r e a m New value Partnering and scale excellence fa rm-downs d ive r s it y b a la nc ing Insight va lue chains
5 New Energy Solutions Leveraging five decades of oil and gas experience
Large complex Leverage local Safety is our Financial strength & Ma r ine o p e r a tio ns Technology & projects and supplier presence & corporate fir st p r io r ity risk management & maintenance inno va tio n r e la t io ns ca p a b ilitie s
6 | New Energy Solutions Cluster and s ca le
Baltic Sea
US East Coast Arko na , G e r ma ny 3 8 5 MW US Ea s t Coast ( Emp ir e W ind ) Po la nd ~4 GW ( Ba lt yk I,II,III) ~2.5 G W
North sea
Dogger Bank Sheringham 3 .6 G W Shoal 3 17 MW Hywind Ta mp e n 88 MW Dudgeon 4 0 2 MW
Hywind Sc o t la nd Offshore wind clusters based on existing assets 3 0 MW
Pip e line Producing
7 | New Energy Solutions W ind p r o je ct s in operation and construction
PRO J EC T Sheringham Dudgeon Hywind Arkona Cañadón León Shoal W ind fa r m Sco t la nd
TECHNO LO GY
Und e r STATUS In operation In operation In operation In operation construction LEAD Equinor Equinor Equinor RW E YPF Luz CO MPANY
O W NER SHARE 40% 35% 75% 25% 50%
INSTALLED 3 17 MW 4 0 2 MW 3 0 MW 3 8 5 MW 12 0 MW CAPACITY PRODUCTION 20 12 20 17 20 17 20 19 20 20 START
C O UNTRY UK UK UK Germany Argentina
8 | New Energy Solutions Offshore wind p r o je ct p ip e line
PRO J EC T Hywind Ta m Dogger Bank Emp ir e W ind Po la nd US East coast UK South Korea pen (NY + MA) Extensions
TECHNO LO GY
STATUS FID 2H 2019 Planning Planning Planning Planning Planning Planning
LEAD Equinor/ Equinor Equinor / SSE Equinor Equinor Equinor KNO C CO MPANY Po le ne r g ia
O W NER SHARE 40% 50% 100% 50% 100% % %
PO TENTIAL INSTALLED 88 MW 3600 MW 8 16 MW ~2500 MW ~3500 MW ~72 0 MW ~200 MW CAPACITY PRODUCTION 20 22 20 23 20 24 START
C O UNTRY Norwa y UK USA Po la nd USA UK South Korea
9 | New Energy Solutions The wind journey Becoming an offshore wind major
Global offshore wind major
Baltic Sea (Poland)
Dogger Bank (UK)
Strategy review
Po r t fo lio b uild -up Empire Wind (NY, U.S:) Independent BA 1.3GW Hywind Tampen (Norway) MMP le g 0.8GW Arkona (Germany)
2010s 20 15 20 18 2020 2020s
10 | New Energy Solutions Equinor cur r e nt ly t o p 5 p la ye r in No r t h Se a , Ba lt ics a nd No r t h Ame r ica clus t e r s
Pa r t icip a t io n 1 in No r t h Se a , Ba lt ics a nd No r t h Ame r ica o ffs ho r e wind ca p a cit y (G W )
11.8 In operation2 In development3 8.1 7.7 7.5 6.1 4.8 3.9 3.5 3.4 2.8
Ørsted Vattenfall SSE RWE 4 Equinor5 Iberdrola Avangrid Trillium PGE6 CIP 7 Power
1. Ownership shares considered 2. 'In operational' also includes experience acquired from decommissioned parks 3. Includesprojects under construction 4. Includes portfolio of Innogy and E.ON 5 . Equinor including Massachusetts (80 0 MW) and Boardwalk (100 0 MW) 6. Po lska Grupa Energetyczna 7. Copenhagen Infrastructure Partners Source: 4COffshore, BCG analysis, 20 19
11 | New Energy Solutions The Dogger Bank Wind farms
Cre yke Be c k A 3 projects (1.2 GW) – Cre yke Be c k B developed in phases Teesside A Dogger Bank Round 3 Zone Teesside converter station 3 .6 G W Cre yke Be c k converter station Combined capacity
12 MW W ind Turbines Water depth 20 m – 35 m (WTGs)
Yorkshire Expected to cover 5% of UK’s electricity generation
Ir e la n d Unit e d 50 /50 joint venture Kingdom between Equinor and SSE Renewables*
First power generation 2023
12 | New Energy Solutions * Lead operator in construction phase and Eq uino r in the operations phase Emp ir e W ind – offshore wind fa rm off the coast ofNe w Yo r k 60 -80 wind turbines
8 16 MW Co mb ine d capacity
+10 MW wind turbines (WTGs)
Fir s t powe r generation late 2024
Water depth 20 m – 40 m Expected to powe r ~500 000 US homes
13 | New Energy Solutions Hywind Ta mp e n – offshore wind fa r m in the North Se a
11wind turbines between Snorre and Gullfaks
88MW Co mb ine d capacity
The fir s t e ve r o il a nd g a s platforms powered by a floa ting offshore wind fa rm
Co ns id e r a b le CO2 e mis s io n reductions - +200,000 tonnes per yea r
14 | New Energy Solutions The North Sea: A world-cla s s e ne r g y p r o vince
Utsira Nord
Sørlige Nordsjø
CCS va lue cha in Norwegian offshore wind resources North Sea power hub
• Continue to develop Northern Lights • Industry must work on cost– scale and • Abundant wind resources – cluster • Private-public partnerships needed for industrialization are key thinking possible CCS value chain • Policy signals have a key role to play: • Link supply and demand in Europe; integrated energy systems • Increasing interest among European – Ambitions? • industries needing deep carbonization – Leasing model? Develop long term cooperation agreements across boundaries – Commercial framework?
15 | New Energy Solutions Size matters
• Turbine sizes increasing:
– Dudgeon (2017): 6MW – Dogger Bank (2023): 12MW – «Haliade-X»: 260 m high with a diameter of 220 m – Blades the length of a fo o t b a ll fie ld ! • Bigger turbines improve competitiveness
– Higher production – Lower costs
16 | New Energy Solutions Way forward for flo a t ing wind
Technology development Cost reduction Ind ust r ia liza t io n
X 5 0
Hywind demo Hywind Sco t la nd Hywind Ta mp e n Flo a t ing wind , commercial 2009 20 17 2021-22 2025-26 2.3 MW 30 MW 88MW 300-500 MW
Cost r e d uc t io n Cost r e d uc t io n USA, Ea s t -Asia , Eur o p a Sco t la nd , Sp a in, 12-15 GW developed by 20 30 60-70 % 40-50% Greece, Fra nce LCO E 4 0 -60 €/ MWh by 2030
17 | New Energy Solutions Open 25 Ap r il 20 19 Hywind Sco t la nd – invaluable experience and high performance
Objectives Performance
100% • Demonstrate cost-efficient and low risk solutions 94% average
for commercial scale floating wind 80%
• Test, verify and further develop the Hywind 60% motion controller for a larger turbine 57% average 40% • Verify up-scaled design 20% • Verify reliability and availability of optimized multi- turbine concept 0%
Wind Turbine Capacity Factor Production-Based Availability
18 | New Energy Solutions The ne xt b ig thing g lo b a lly Scotland and Ireland
• Vast potential: 12-15 GW US West Coast France market by 2030 Japan and South Korea
• Innovative applications
• Choice of substructure and design will vary depending on local conditions
• Equinor is a technology agnostic developer
• Targeting the «big four» regions
Ut ilit y sca le Big citie s Is la n d s Oil and gas
19 | New Energy Solutions So la r - Building capabilities and capturing opportunities through partnership
• *
Apodi project Guanizul 2A project Exploring Combining Brazil Argentina opportunities solutions
Latin America and Bundling MW * * other regions with technologies 16 2 117MW Equinor presence
• Installedcapacity, 100% basis.
20 | New Energy Solutions Shaping the future ofenergy Thankyou for your attention