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Equinor (EQNR)-Led Ocean Grid Project Gets Government Funding

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Equinor ASA EQNR recently announced that the Norwegian government has provided NOK 82.7 million (around $9.6 million) of financial support to the Ocean Grid project. The Minister of Trade and Industry, Iselin Nybø announced the funding through the Green Platform scheme.

Equinor is leading the Ocean Grid project, which will induce new technology and solutions to develop profitable offshore wind on the Norwegian Continental Shelf. It has other developers like Aker Offshore Wind, Fred. Olsen Renewables, Deep Wind Offshore, AgderEnergi and Hafslund Eco AS in the project. The project has suppliers and manufacturers in the form of AkerSolutions, Hitachi, Ltd.’s HTHIY Hitachi ABB, Aibel, Nexans, DNV and others. The innovation and research work will be done by entities like NTNU, SINTEF and UiO.

Norway introduced the Green Platform scheme in May 2020, which was included in the third stimulus package for the COVID-19 pandemic. Through this scheme, the government is eyeing rapid investments in green energy. Having government support for projects like Ocean Grid can enable the country to ramp up its power production from renewables and boost exports. It will, in turn, significantly contribute to Europe’s agenda of installing 300 gigawatts of offshore wind by 2050. Equinor expects the Ocean Grid project to create new green jobs going forward.

The three-year project is expected to find ways of connecting offshore wind to the grid. It expects the project to work on both floating and bottom-fixed wind farms. The partners in the project are also expected to provide funding, thereby boosting its total value to NOK 125.5 million (around $14.5 million).

Equinor’s key strategy is to capitalize on the renewable energy space and align operations with the Paris Climate Agreement. To combat climate change, the company is already investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to boost production capacities from renewables to 4-6 gigawatts by 2026. Further, by 2035, the company plans to further boost the capacity of renewable projects to 12-16 gigawatts. It also plans to become a net-zero greenhouse gas emitter by 2050.

Price Performance

Shares of the company have gained 43.7% compared with the industry’s 32.7% growth in the past year.

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Zacks Rank & Other Stocks to Consider

The company currently sports a Zacks Rank #1 (Strong Buy). Other top-ranked stocks from the energy space include SM Energy Company SM and Comstock Resources, Inc. CRK, each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy’s bottom line for 2021 is expected to surge 173.9% year over year.

The Zacks Consensus Estimate for Comstock Resources’ earnings for 2021 is pegged at $1.10 per share, signaling a major improvement from the year-ago figure of 23 cents.

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Hitachi Ltd. (HTHIY) : Free Stock Analysis Report

Equinor ASA (EQNR) : Free Stock Analysis Report

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