Statkraft, Norway to reduce costs by $292 million and may layoffs

Statkraft, the Norwegian state-owned utility, announced on Wednesday that it will reduce its annual costs of around 15%, or 2.9 billion crowns (US$292 million), by 2027. Statkraft cited increased global uncertainty as well as higher expenses and lower electricity prices.

After reducing its hydrogen ambitions last year, the company announced in May it would no longer be developing any new green hydrogen projects because of higher costs and an uncertain demand.

Statkraft's CEO Birgitte ringstad Vartdal stated in a Wednesday statement that the company must adapt to a changing market, and to increased geopolitical uncertainties.

The company stated that the specific measures, such as any reductions in staff, will be identified by the second half 2025.

Statkraft stated that it would prioritize near-term profitable technologies such as solar, wind, and batteries, in fewer markets. Statkraft cited the slow development of offshore wind.

Vartdal stated that "Offshore Wind will play an important part in the mix of power in Europe. However, the pace of industry development has been slower than originally forecast, which has affected the ability to reduce costs in the near term."

The company announced that it would cease all new activities, including the upcoming Norwegian allocation round for Utsira Nord. It also said that it would cease its development activities within Portugal.

Statkraft said that it will evaluate its investments in solar, wind, and batteries in Poland but will continue to develop the North Irish Sea Array Project. Statkraft said that it will continue to market in Portugal and Poland.

(source: Reuters)