In This Article:
Equinor ASA EQNR and Azane Fuel Solutions started a project to explore how clean ammonia can be used as a fuel to decarbonize the Norwegian offshore sector.
The project was established as AFNO 2030, Ammonia fuel for the Norwegian offshore sector 2025-2030, after a long-term discussions about ammonia bunker fuel and bunkering. The project will comprise logistical optimization, operational planning and safety aspects of ammonia which remain critical concerns.
The project is expected to meet an estimated demand for ammonia between 2025 and 2030, with an optimized fuel-value chain from production to consumption. The project will mainly focus on distributing ammonia and developing bunkering terminals at strategic locations.
As the world faces the challenges posed by greenhouse gas emissions and the depletion of fossil fuel resources, transitioning to renewable energy sources is vital. Renewable energy has become increasingly important in the global fight against climate change.
Ammonia has gained attention in recent years as a low-carbon fuel, which does not emit carbon dioxide. However, some crucial challenges that needs to be addressed are safety concerns related to ammonia toxicity and corrosiveness.
Equinor’s key strategy is to capitalize on the renewable energy space and align operations with the Paris Climate Agreement. Although the company gets most of its revenues from oil and gas, it has become a crucial player in green energy areas such as offshore wind.
Equinor can play an important role in decarbonizing the maritime industry by utilizing fuel, technologies and bunkering infrastructure required for the industry to thrive. The Norwegian energy giant is committed to demonstrating how clean ammonia can be utilized to decarbonize the Norwegian offshore sector.
Price Performance
Shares of Equinor have outperformed the industry in the past three months. The stock has gained 2.3% against the industry’s 2.6% decline.
Image Source: Zacks Investment Research
Zacks Rank
Equinor currently carries a Zack Rank #3 (Hold).
Stocks to Consider
Some better-ranked players in the energy space are Seadrill Limited SDRL, Evolution Petroleum Corporation EPM and PHX Minerals Inc. PHX. Each of SDRL and EPM currently sports a Zacks Rank of 1 (Strong Buy) while PHX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents.