Equinor suspends construction at Empire Wind

Equinor said Thursday it is suspending offshore construction work on its Empire Offshore Wind LLC after a stop-work order was issued April 16 by the federal Bureau of Ocean Energy Management.

Empire will “halt all activities on the outer continental shelf until BOEM has completed its review,” the company said in a statement issued shortly before noon Thursday. “Empire is engaging with relevant authorities to clarify this matter and is considering its legal remedies, including appealing the order.”

Under a federal lease signed with BOEM in 2017, Equinor secured federal and state permits for the Empire Wind 1 phase of the project, for 54 turbines with a nameplate rating of 810 megawatts. Construction began with seafloor rock installation in April, days before Interior Secretary Doug Burgum ordered BOEM to halt the project.

“Empire is complying with the order affecting project activities for Empire Wind,” the company said. “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 project was to be built – as New York State’s biggest energy infrastructure project in 50 years – under contract with the New York State Energy Research and Development Authority (NYSERDA).

The shutdown “goes against the Trump administration’s own prioritization of independent and locally produced energy and shows a complete disregard for a once-in-a-generation economic powerhouse like offshore wind energy,” said Doreen M. Harris, NYSERDA’s CEO and president.

“This project underwent extensive and robust federal reviews, having received all state and federal permits – including securing the lease for the project site from the former Trump administration – and is already under construction with strong support from the local Sunset Park community and more than 1,500 construction workers currently employed,” said Harris.

“The federal government’s interference not only ignores the reality surrounding the future energy security of our state and country, it’s fueled by a shortsighted, political agenda that ignores the well-demonstrated economic benefits that this industry can provide as the state and nation work to ensure an affordable, reliable and abundant energy supply for future generations. The irrefutable harm created by this action will send a chilling signal to any party investing in the U.S. market, all of whom rely on regulatory certainty.”

As of March 31 Empire Wind had a gross book value of around $2.5 billion, including the company’s port facility at the South Brooklyn Marine Terminal.The total amount drawn under the project finance term loan facility March 31 was around $1.5 billion.

“Empire is in the process of ascertaining the impact on the project and project financing,” according to the company. “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.”

“The halt work order will be disclosed as a subsequent event in the first quarter 2025 report.”