By 2020 we expect up to 25% of research funds to be devoted to new energy solutions & energy efficiency.
Aiming to achieve annual CO2 emission reductions of 3 million tonnes by 2030 compared to 2017.
By 2030 new energy has the potential to constitute around 15-20% of investments/annual capex.
A core element of our business strategy is to embrace the energy transition and embed our response to climate change into the heart of our operations and processes. One of our main efforts is to reduce emissions from our ongoing operations and future projects.
One of our biggest successes so far in emission reduction has come from initiatives to stop flaring. Statoil will eliminate continuous production flaring in our operations altogether by 2030, in line with the World Bank Zero Routine Flaring by 2030 initiative. In 2016, we reduced flaring volumes at our Bakken onshore gas field in the US by around 15% compared to 2015 levels.
For our offshore operations in Norway we have a target to avoid a total of 3,2 million tonnes of CO2 emissions by 2030, compared to 2020. We will do this through the implementation of energy efficiency projects. We reached our former goal of 1,2 million tonnes by 2020 five years early.
We are increasing our efforts to track and reduce methane emissions throughout the natural gas value chain, from oil and gas extraction, to processing and distribution. Methane is a powerful greenhouse gas, which has a shorter lifetime in the atmosphere than CO2, but a warming potential that is about 25 times higher over a 100-year time horizon, and about 86 times greater over a 20-year period.
We are raising our standards to reduce CO2 emissions from logistics solutions in the industry. We have already reduced emissions by nearly 30% compared to 2011, supporting our goal to be the most carbon-efficient producer of oil and gas.
Our climate roadmap includes our increasing business within new energy solutions. Some of our efforts are already producing energy for thousands of households, while some are being developed. Our ambition is to scale up investments in profitable new energy solutions, to gradually complement our oil and gas portfolio.
Statoil has been actively involved in offshore wind projects for more than ten years and aims to develop profitable projects in selected markets. To date we have invested around USD 2.3 billion, using our offshore experience to develop large scale wind farms and innovative floating platform technology that facilitates wind power in deep-water areas.
Statoil has long been a pioneer in carbon capture and storage (CCS) — operating some of the largest projects worldwide. Statoil is developing the CO2 storage part of a full CCS value chain, currently being created in Norway through public-private partnerships. This will be the first storage site in the world receiving CO2 from several industrial sources.
By exploring new low carbon opportunities, we aim to be at the forefront of developments in the energy market. We aim to devote up to 25% of our research spending to new energy solutions and emission reduction efforts by 2020.
Statoil has long been a pioneer in carbon capture and storage (CCS), currently the main technology for decarbonising fossil fuels. We operate some of the largest projects worldwide, capturing and storing more than 20 million tonnes of CO2 to date at Sleipner and Snøhvit in Norway. In our research, we aim to contribute to the development of commercial scale CCS projects.
We look for opportunities to create synergies between renewables and the oil and gas value chain. For example converting gas to hydrogen, while capturing and storing the CO2, as a potential way to help our customers in the power and heating sectors meet their climate targets. It is still early days for hydrogen, but we see this is an exciting opportunity for natural gas in the future.
Climate considerations are integrated in our vision, strategy and performance management. Both our corporate executive committee and our board of directors frequently discuss the business risks and opportunities associated with climate change, including regulatory, market, technological and physical risk factors.
We have created a range of short, medium and long-term targets designed to measure progress and incentivise performance across the entire company—starting at the top. We have also introduced a set of stringent decision criteria to ensure we consider relevant climate risk factors in all future investment decisions, and set an internal carbon price of at least USD50 per tonne of CO2 for all projects.
To reduce the carbon intensity of our overall portfolio, we have set an ambitious CO2 intensity target and introduced a number of new principles to reach it. As a result, some resources will not have a place in our future strategy.