Norway is aiming to forge a robust partnership with Indonesia, exploring investment opportunities in renewable energy sectors such as hydropower and carbon capture and storage (CCS), Norwegian Energy Minister Terje Aasland told Reuters following talks with Indonesian Energy Minister Arifin Tasrif in Jakarta.
“A lot of opportunities are there, and there are some hurdles, but I hope we can build a stronger partnership in years to come,” Aasland remarked, highlighting the potential for collaboration in green energy initiatives.
Despite Norway's commitment to achieving net-zero greenhouse gas emissions by 2050, the country continues to explore and develop new oil and gas fields, including in the Arctic's Barents Sea, to maintain production levels expected to peak in 2025. Norway has become Europe's largest natural gas supplier after a significant reduction in Russian deliveries since the Ukraine war began in 2022.
Norwegian firms, including Equinor, DNB, and Yarra, are actively investing in renewables, energy storage, and alternative fuels like ammonia across the Asia Pacific region, Aasland noted during a meeting with company representatives in Singapore.
“We believe Norwegian expertise in hydropower and CCS can contribute significantly to reducing emissions in Indonesia,” Aasland emphasized, underscoring Norway's advancements in CCS technology with the upcoming launch of storage capacity at its Northern Lights project and plans to capture carbon dioxide from a cement plant in Brevik by May next year.
Norway, as Western Europe's largest oil and gas producer, maintains an output exceeding 4 million barrels of oil equivalents per day (boepd). Aasland highlighted the importance of oil and gas in ensuring energy security and affordability in the transition to greener alternatives.
Despite its fossil fuel sector, Norway aims to diversify its mineral value chain by exploring seabed mining in the Arctic region next year to extract minerals crucial for renewable technologies. This initiative faces opposition from environmental groups and some European countries concerned about its sustainability.
“Today we depend on Russia and China, so we have to diversify the value chain for minerals in the coming years,” Aasland noted, emphasizing the strategic importance of sustainable development on the Norwegian Continental Shelf.
