Equinor, the Norwegian state-owned oil and gas company, has significantly scaled back its renewable energy ambitions. The company recently scrapped its 2030 target of deploying 10 to 12 gigawatts of wind and solar capacity and has raised its investment bar for new renewables projects, making future wind investments less likely. As part of this strategic reassessment, Equinor is exiting the Japanese offshore wind market and closing its Tokyo office, though it stated that Japan will remain an important country for ongoing relationships in technology, commodities, and supply chains.

This move follows a pattern of withdrawal from several other offshore wind markets, including Vietnam, Spain, and Portugal. Chief executive Anders Opedal emphasized that projects will not be built unless they offer sufficient return on capital, admitting that Equinor has not actively pursued its renewables targets for several years due to a lack of projects meeting its requirements. The company’s revised estimates now predict that only 10% of its investments will be in the power sector in the coming years.

Despite pulling back on its own targets, Equinor remains a 10% shareholder in Danish offshore wind giant Orsted, having spent money to preserve this stake after Orsted’s rights issue last year. The company’s strategy now focuses on maximizing value from the Norwegian continental shelf, growing its international oil and gas portfolio, building a competitive integrated power business, and creating value through energy trading and market optimization.