Norwegian oil and gas firm Statoil ASA (STL.OS STO) has seen an
increased interest for renewables following the
Fukushima
nuclear disaster, but for green energy to compete with other investment
opportunities and play a bigger role in the company's future, costs must come
down.
It's still early days for the firm's renewable energy department, that became
part of the newly set up business section Marketing, Processing and Renewable
Energy in an organizational restructure on Jan. 1 moving from the former
business unit Technology and Research.
On the same date, Stale Tungesvik, who has 26 years of experience in the oil
and gas industry, became head of the renewables section that names offshore
wind power a key area in its approach for new energy.
Statoil is exiting its onshore wind assets, a number of various sized farms,
and concentrating on wind projects at sea, where it can exploit its experience
from its numerous offshore oil and gas exploration fields.
Tungesvik said that the firm had seen a rising interest for renewables after
the nuclear disaster and that the firm's future renewables strategy is also
dependent on the political approach to the future energy mix--a hot topic after
the earthquake and tsunami damaged the Fukushima Daiichi nuclear plant in
Japan.
"After the events and up until now there has been a lot, a lot more
pressure," Tungesvik said.
Among its renewable ventures are the world's first floating wind turbine
Statoil constructed 10 kilometers off the south-west coast of
Norway
, and
two
U.K.
projects in the pipeline--Sheringham Shoal and
Dogger
Bank
.
Tungesvik described the 317 megawatt Sheringham Shoal project, off the
Norfolk
coast, as an "enabler." The wind park will consist of 88 turbines and
the firm is investing about GBP1 billion in the project together with Norwegian
power utility Statkraft. The firm's each have a 50% stake in the project.
"We have to show we can do this, or at least take a lot of lessons from
it," he said in an interview with Dow Jones Newswires.
The firm has a considerably bigger 9 gigawatt project in the pipeline, the
Dogger
Bank
project, done in a consortium with Statkraft, Scottish and Southern
Energy (SSE.LN) and the
U.K.
subsidiary of RWE Innogy (RWE.XE).
"Buying into fields together with others could be interesting, but it's
important for us to take an active role as we want to learn this,"
Tungesvik said.
The
U.K.
also
happens to be where most efforts are currently being directed given its
proximity to home for Statoil, and the country's relatively welcoming approach
toward renewables.
"But looking ahead it doesn't matter where you do this, if it's profitable
you could do it anywhere," Tungesvik said.
The renewables section is not profitable yet--as the business unit is still in
an investment phase--but taking costs down and turning it into a money-spinner
once its projects are in place is at the top of Tungesvik's agenda.
He said the firm's strong balance sheet and financial strength is an advantage
as the wind farm projects require substantial investments.
Statoil is the partly state-owned Norwegian energy giant best known for its
highly lucrative oil and gas exploration business, which in 2010 helped the
company turn a net profit of NOK38.08 billion ($6.98 billion).
At 1525
GMT shares traded 2.0% higher at NOK139.10.