Equinor Halts Empire Offshore Wind Project in US
- Business Companies Renewables World
Global Business Magazine- 4 minutes read
As per the directions of the US government, the Norwegian multinational energy firm Equinor on Thursday said that it was halting the offshore construction of the $2.5 billion Empire Offshore Wind (Empire) in the waters of the outer continental shelf southeast of Long Island off the coast of New York.
The Empire received a notice from the Bureau of Ocean Energy Management (BOEM) on Wednesday, ordering to halt all activities on the outer continental shelf until BOEM has completed its review, Equinor said.
The US Interior Secretary Doug Burgum will evaluate the project. “He plans to review information that suggests the Biden administration rushed through its approval without sufficient analysis, Burgum wrote in a post on X.
Equinor said that Empire was engaging with relevant authorities to clarify this matter and is considering its legal remedies, including appealing the order.
According to Equinor, the federal lease for Empire Wind was signed with the US administration in 2017 and Empire Wind 1 has validly secured all necessary federal and state permits and is currently under construction.
The project is being developed under contract with New York State Energy Research and Development Authority (NYSERDA) to provide an important new source of electricity for the State of New York. The construction phase has put more than 1,500 people to work in the US. Empire wind 1 has the potential to power 500,000 New York homes.
“Empire is complying with the order affecting project activities for Empire Wind. Upon receipt of the order, immediate steps were taken by Empire and its contractors to initiate suspension of relevant marine activities, ensuring the safety of workers and the environment,” Equinor said.
Empire’s Gross Value
Empire Wind has per 31 March 2025 a gross book value of around $2.5 billion, including South Brooklyn Marine Terminal. Equinor’s ownership to Empire is held through the Equinor Wind US LLC. Total amount drawn under the project finance term loan facility per 31 March 2025 was around $1.5 billion.
Empire is in the process of ascertaining the impact on the project and project financing. Equinor US Holdings Inc has provided guarantees for the equity commitment in the project financing. In a full stop scenario, the $1.5 billion will be repaid from the equity commitment to the project finance lenders and Empire Offshore Wind LLC will be exposed to termination fees towards its suppliers.
Equinor is one of three companies that holds leases to build floating wind turbines in the 376-square-mile Morro Bay Wind Energy Area about 20 miles offshore of Cambria and San Simeon in California. However, the BOEM’s order will not impact this project.
Equinor is a broad energy company with more than 35 years of history in the US. Equinor has invested more than 60 billion USD in the US to date, including in oil, gas and renewables.
