Equinor Halts Construction of NY Wind Project

Equinor ASA’s wind power unit in the US, Empire Offshore Wind LLC, is stopping offshore construction for the Empire Wind project offshore Long Island, New York, under a halt work order issued by the Trump administration.

Empire on Wednesday received a notice from the Bureau of Ocean Energy Management (BOEM) ordering the company to halt all activities on the outer continental shelf until the agency completed its review.

The company said it is “engaging with relevant authorities to clarify this matter and is considering its legal remedies, including appealing the order,” according to a statement.

“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,” the company said, adding that the halt work order will be disclosed as a subsequent event in the first-quarter 2025 report.

The federal lease for Empire Wind was signed with the U.S. government in 2017. 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 the 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, according to the statement.

Empire Wind, which Equinor owns through Equinor Wind US LLC, has a gross book value of around $2.5 billion, including the South Brooklyn Marine Terminal.

The total amount drawn under the project finance term loan facility as of March 31 was around $1.5 billion, Equinor said. 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, according to the statement.

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 stated.

The Norwegian energy company had announced a final investment decision on Empire Wind 1 in January and stated that it planned to bring in a partner to reduce its financial exposure and maximize the project's value.

Equinor took full ownership of Empire Wind 1 and 2 in a swap transaction with 50 percent co-venturer BP plc.

Last month, Equinor acquired the 95-megawatt (MW) Lyngsåsa wind farm in Alvesta, southern Sweden, from SUSI Partners.

The wind farm generates around 300 gigawatt hours (GWh) annually, which corresponds to approximately 10 percent of Equinor's renewable power production for 2024, according to an earlier news release.

The facility has been in production since September 2021. It consists of 22 wind turbines with a combined installed capacity of 95 MW.

The produced power will be sold in the southern Swedish spot market and will increase Equinor’s merchant exposure with immediate operational cashflows, the company said.

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