In the years ahead, Norway will purchase more defense materiel than ever before. This opens new opportunities for Norwegian suppliers in the international market. Among them: Umoe Mandal and Kitron.

To succeed abroad, Norwegian companies depend largely on industrial cooperation agreements that bind foreign suppliers to Norwegian partners. These agreements have long been a cornerstone of national defense industry development, as Norway continues to import most of its materiel. With 80 percent of industry turnover coming from international markets, the Norwegian defense sector must be competitive globally.

Shipbuilder Umoe Mandal has successfully transformed into a pure defense company, focused entirely on maritime systems, composite structures and military platforms.

CEO Tom Fidjeland puts it bluntly: “A job has to be maritime, in composites and military. Otherwise, we’re not interested.”

Umoe Mandal’s niche expertise is world class and customers are generally foreign. The domestic market is simply too small. The company’s future depends on securing international contracts and being plugged into major programs through industrial cooperation agreements.

Kitron adds another layer to this picture. With half its turnover in defense and operations across several countries, Kitron shows how Norwegian competence can anchor international supply chains. Their recent work supporting Ukraine highlights the importance of scaling and mass production, capabilities Norway has not yet fully tested at home.

“Another challenge for Norway is to prioritize in situations when supply chains cannot sufficiently serve all parties. In such cases, commercial interests often trumphs societal needs,” said Hans Petter Thomassen, VP Nordics and North America at Kitron.

Kitron and Umoe Mandal discussed these matters during an Arendalsuka event organized by Fremtidens Forsvarsindustri Sør (FFS), Agder County, GCE NODE, and Digin.

We have the world’s best drillers. So why will Norway not exploit the vast energy resources hundreds of meters below the surface?

Norway holds a unique position within geothermal energy: World class drilling expertise, a highly electrified society in need of greater resilience, and vast untapped thermal resources beneath our feet.

While Sweden produces around 23 TWh of geothermal heat annually and Finland 7 TWh, Norway lags behind at 4-5 TWh despite having the strongest drilling competence in the Nordic region.

This gap, which illustrates both the challenge and the enormous potential, was addressed during an Arendalsuka event hosted by Geothermal Energy Association of Norway, GCE NODE, NORCE Research and SINTEF.

Geothermal energy offers qualities Norway increasingly needs. As energy security becomes more critical, reliance on a single energy carrier, electricity, creates vulnerability.

Storms, sabotage, cyberattacks, and grid constraints all expose the fragility of a system built on centralized power production. As Kristin Flornes, EVP at NORCE Research emphasized, a resilient society requires local, stable energy sources that function regardless of weather, market volatility, or grid bottlenecks. Geothermal heat is exactly that: always available, always local, and independent of electricity prices.

Kristin Flornes, EVP at NORCE Research, said that a resilient society requires local, stable energy sources that function regardless of weather, market volatility, or grid bottlenecks.

Kirsti Midttømme, Chief Scientist at NORCE Research, highlighted another strength: geothermal systems are inherently decentralized. With more than 75,000 installations already in place, Norway has a foundation to build on but lacks the policy instruments that accelerated deployment in Sweden and Finland. Price signals alone will not unlock growth; targeted support mechanisms are needed to scale the industry.

Jesper Moberg, CEO of Norsk Retningsboring, gave a perspective that underscored Norway’s most significant competitive advantage: drilling competence.

“For geothermal energy, we rely heavily on the competence and technology from the oil and gas industry. We have the world’s best drillers. Our technology is proven, scalable, cost competitive, and leaves only a small mark on the surface. Geothermal energy is ‘the obvious solution’, yet political recognition remains limited,” said Moberg.

During the closing debate, Members of Parliament Mani Hussaini (Labour Party) and Frøya Sjursæther (MDG), acknowledged that geothermal energy is not a hot topic in the Norwegian Parliament.

Members of Parliament Mani Hussaini (Labour Party) and Frøya Sjursæther (MDG) and Andreas Storbukås (left), General Manager at Å Energi Varme.
“A more integrated energy system strengthens national resilience,” said Hanne Kauko, Senior Researcher at SINTEF. “Geothermal heat and seasonal storage can reduce peak electricity demand, ease pressure on the grid, and diversify Norway’s energy mix.”

Equinor signals rising activity on the Norwegian Continental Shelf, countering claims that Norway’s petroleum sector is heading toward shutdown.

“In a turbulent global energy landscape, where supply is dominated by countries scoring poorly on democratic indices, Norway’s stable, liberal democracy is becoming increasingly important for Europe’s energy security. Though Norway contributes only a small share of global oil and gas output, its role is disproportionately significant for Europe’s democratically aligned markets,” says Knut Mjåland, CEO of GCE NODE.

Equinor recently adjusted its strategy with fewer concrete renewables targets and higher ambitions for oil and gas production toward 2030 and 2035. When the company presented its long-term plan in 2024, the goals were described as bold and ambitious. Today, those ambitions are already met. Exploration results have accelerated the shift. Since 2023, Equinor has made 45 discoveries on the Norwegian shelf, expanding a resource base that has matured far faster than expected.

A key milestone approaches as Equinor prepares a final investment decision on Wisting, the largest undeveloped field on the shelf. The International Energy Agency has repeatedly emphasized that global gas production must increase in the coming years, a message that reinforces Norway’s responsibility not to leave energy supply solely to major autocracies.

“Activity is set to remain high. Equinor plans substantial investments in 2026, and the government has issued a record number of licenses. The anticipated decline appears further away than expected, and activity levels are likely to exceed earlier industry forecasts. This is crucial for Southern Norway’s supplier industry, which delivers technology and expertise for upgrades, modifications, and potential newbuilds,” says Mjåland.

At the same time, Norway faces a tightening power situation. In 2033, DNV expects Norway to import 5 TWh more electricity than it exports, meaning domestic production will fall short of demand. This poses serious challenges for industry and thousands of jobs.

Offshore wind was intended to help close the gap, but development has been slower than planned. The government’s upcoming North Sea wind deployment plan (Tempoplanen) will be decisive in determining which areas will be built out, and how quickly.

“The signals from Equinor point to a future where the Norwegian Continental Shelf remains central to Europe’s energy stability, while Norway simultaneously navigates a demanding transition in its domestic power system. Companies in our region will participate in sustaining the oil and gas industry, while building renewable industries that eventually will reduce our dependency on oil and gas,” says Mjåland.