Equinor Secures Funding for Its US Wind Project

Norway’s state-owned energy firm Equinor has secured a project financing package of over $3 billion for its 810 MW offshore Empire Wind 1 Project in the US and the financial close was reached at the end of December 2024.

Empire Wind 1 will power 500,000 New York homes and is expected to reach its commercial operation date in 2027, Equinor said.

The expected total capital investments, including fees for the use of the South Brooklyn Marine Terminal (SBMT), are approximately $5 billion including the effect of expected future tax credits (ITCs).

The offshore wind farm was previously owned by Equinor and BP but in January 2024, the companies reached an agreement to restructure the ownership of their joint venture offshore wind projects in the US, with Equinor taking full control of Empire Wind 1 and 2, and BP assuming full ownership of the 2.5 GW Beacon Wind project.

Equinor acquired the Empire Wind lease area in 2017 and announced the execution of the Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority for Empire Wind 1 power for 25 years at a strike price of USD $155/MWh in June last year.

The investment level and support framework are in line with the developing US offshore wind industry.

Equinor intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.

Important Milestone

Jens Okland, acting executive vice president for Renewables in Equinor, said that this was an important milestone for the company, in line with its plan to enhance value and reduce exposure in the Empire Wind 1 project.

“As we now enter full execution mode, we continue our efforts to increase robustness and value-creation in the project,” Okland said.

Molly Morris, senior vice president for Renewables in Americas, said that the financial close maintains Equinor’s momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen US energy security, build economic growth and fuel a new American supply chain.

“Our redevelopment of the SBTM is already putting more than 1,000 people to work. Equinor is proud to play a part in advancing domestic energy solutions safely, efficiently, and for the long term, Molly added.

Equinor made a final investment decision on the wholly owned and operated Empire Wind 1 project in 2024 and construction has already begun. The project is located 15-30 miles southeast of Long Island and spans 80,000 acres.

With a contracted capacity of 810 MW, Empire Wind 1 will be the first offshore wind project to connect into the New York City grid. The re-development of the SBTM and construction of Empire Wind 1 will create more than 1,000 union jobs in the construction phase.

The debt financing of the project has reached financial close. Due to strong interest from lenders, the Empire Wind 1 project was able to secure competitive terms. The final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks, the company said.