Transitioned from Oil to Green Tech

Knut Husdal left the oil adventure for green technology. Investors punishing unprofitable green projects do not scare him. "They can't stop the development," he asserts.

Knut Husdal, CEO of Novatech, is convinced that Norway will achieve its climate targets. The question is not if but how quickly. Pictured here with his brother and co-founder Lars Husdal.

Overview

• Knut Husdal, with over 20 years of experience in the oil industry, now leads the company Novatech, focusing on solving climate challenges with technology. The stock market has recently reacted negatively to investments in green projects, which is a challenge for innovation in green technology. 

• Despite such challenges, Husdal believes that technology is the key solution to climate issues and is not worried about the lack of investments in green innovation. 

• In 2022, investments in renewable energy reached $1 trillion globally, the same level as investments in fossil energy.

The building in Bjergsted, which once housed The Norwegian Offshore Directorate (formerly known as Oljedirektoratet, or The Norwegian Petroleum Directorate), when the oil adventure took off in Stavanger, now focuses on green innovation.

Knut Husdal, with more than 20 years in the oil industry behind him, is now betting everything on the company Novatech to find solutions to climate challenges. 

Husdal is an eager technology optimist. "Absolutely all challenges humanity has faced since the dawn of time have been solved with technology. A classic example is London and New York, which were about to drown in horse manure. Then the car came – and horse manure became a shrug." he states firmly. 

However, technological optimism does not necessarily translate into an increased willingness to invest. 

The Paradox

"It costs more to invest in innovation due to higher interest rates and general price increases. There is, therefore, reason to fear that it has become riskier to invest in innovation. This can be challenging for some of the green ideas," says Lene Skjæveland Bø, CEO of SR-Bank's Entrepreneur Academy. 

She observes several signs that quick returns trump green innovation in the entrepreneurial community here in the city.

• According to a report from Fornybar Norge or Renewables Norway, investments in renewable energy plummeted from 40 billion in 2018 to 24 billion in 2022. 

• According to a survey by Sparebank 1 SR-Bank, 9 out of 10 business leaders do not believe Norway will achieve its climate targets by 2030. Nevertheless, nearly half of the business leaders in the survey believe that increased focus on new technology is most important for solving climate challenges.

And here lies a paradox: If technology is the solution, why aren't we investing more in it?

The stock markets give a thumbs down

When Equinor presented its second-best result in history last week, only surpassed by the record year of 2022, the company still plummeted on the stock exchange. Analysts believe Equinor's willingness to invest money in unprofitable renewable energy projects is part of the explanation.

Earlier this year, it was also revealed that the state climate fund Nysnø's first major success, the solar panel company Otovo, had its market value shaved by 161 million in just one year.

Using AI to reduce emissions

Back in Bjergsted, Husdal explains how his company can help others reduce CO₂ emissions using artificial intelligence. The program they have developed simulates the effects of measures to reduce emissions on oil fields. This way, emissions can be cut while keeping costs down.

"None of these companies are set up to reduce emissions. They are set up to produce gas, bicycles, or cars. Whereas we are set up to figure out how they can reduce it. We can quickly and easily find out with this tool," he explains.

Not afraid of a cash drought

Husdal, unlike Skjæveland Bø, is not significantly worried about a lack of investment. "The fact that some businesses or investors are hesitant is not what stops this development," he says – pointing to the huge sums that have been invested in renewable energy globally in recent years. The picture is nuanced. 

Despite the stock markets' clear signals, investments in renewable energy globally remain stable. 

• According to figures obtained by BloombergNEF, in 2022, investments in renewable energy surpassed $1 trillion and reached the same level as investments in fossil energy for the first time.

• Additionally, estimates from the International Energy Agency (IEA) indicate that investments in emission-free energy have never been higher than in 2023.