Summary
Power from shore as replacement for gas turbines has been the most important measure to reduce greenhouse gas emissions offshore. The most profitable projects have been implemented first. This means that it is more challenging to achieve profitability when implementing power from shore for the remaining fields.
Power from shore to replace gas turbines has been the most important measure to reduce greenhouse gas emissions offshore. This report builds on the 2020 report entitled «Power from shore to the Norwegian shelf».
During the period from 2020-2025, the number of fields that have implemented or decided to use power from shore has grown. Transitioning to power from shore has been approved on Sleipner, Njord, Draugen, Oseberg field centre, Oseberg Sør, Troll B and C, as well as the Hammerfest LNG onshore facility. A decision has also been made to develop the fields in the Yggdrasil area using power from shore.
In 2020, there were 16 fields operated entirely or partially using power from shore. When the projects currently under development come on stream, this number will jump to 39. This also includes minor fields tied back to host facilities that operate using power from shore.
Conversion to power from shore has contributed to a significant reduction in greenhouse gases. From 2019 to 2024, emissions from the NCS were reduced by 2.9 million tonnes of CO2-equivalent. Since 2015, the reduction amounts to 4.1 million tonnes of CO2-equivalent, or 27 per cent. Additional emission reductions are expected when all projects currently under development come on stream.
Increased CO2 cost
The most important policy instruments to reduce emissions from the petroleum sector are financial; the emissions trading system and the CO2 tax. The increase in the number of power from shore projects can be attributed to several factors, including higher CO2 costs resulting in more projects becoming profitable.
Since 2020, CO2 costs have increased from around 860 to 1860 Norwegian kroner (NOK) per tonne in 2025. This means that the environmental cost now accounts for a significant share of operating costs for fields operated using gas turbines.
CO2 costs are expected to continue to rise in the years to come.
Several projects halted
The projects which in recent years have been in the planning phase for conversion to power from shore are less profitable and more challenging to implement as compared with green-lighted projects. As a consequence, several projects have been discarded.
Studies are still under way on the Balder and Grane fields in the North Sea. The timing of a potential investment decision is planned for 2026. The Norwegian Offshore Directorate is not aware of any new power from shore projects that are planned/under planning on fields in operation.
The companies have also evaluated alternative solutions to reduce emissions from gas turbines offshore. The companies’ assessment of these alternatives is that the costs are higher, emission reductions are lower, and/or implementation is more technically challenging.
Resource consequences for fields without power from shore
The expectation is that more platforms will continue to operate with gas turbines. Therefore, these platforms will have major greenhouse gas emissions and associated costs.
High CO2 costs can lead to resource-related consequences as this factor can impact the future use of fields as host facilities, accelerate final shutdown timing, influence exploration and reduce the profitability of recovery measures that entail maintaining or increasing energy consumption.