Equinor Achieves Financial Close for Empire Wind 1 Project

Deal News | Jan 02, 2025 | Equinor ASA

Equinor ASA has reached financial close for the Empire Wind 1 project, a landmark offshore wind initiative set to power 500,000 homes in New York and due for commercial operations in 2027. The total capital investment is projected to be approximately USD 5 billion, inclusive of fees for the South Brooklyn Marine Terminal and anticipated future tax credits. Having acquired the lease area in 2017, Equinor secured a 25-year agreement with the New York State Energy Research and Development Authority to supply power at USD $155.00/MWh. As part of an effort to maximize value and minimize risk, Equinor plans to bring in a partner for this venture. With the project's construction already underway, Empire Wind 1 is located 15-30 miles southeast of Long Island and boasts an 810 MW capacity. The project's completion will mark the first offshore wind connection to New York City's grid, creating more than 1,000 union jobs and promising to bolster US energy security while stimulating economic growth through a budding American supply chain.

Sectors

Renewable Energy
Infrastructure
Finance

Geography

United States – The project, Empire Wind 1, is designed to supply power to New York, emphasizing its role within the US energy landscape.
Norway – Equinor ASA is a Norwegian company, indicating its influence and operations extend internationally.

Industry

Renewable Energy – This sector involves companies operating in the production and distribution of renewable energy sources such as wind, solar, and hydroelectric power. The article details Equinor's offshore wind project, emphasizing its contribution to renewable energy generation.
Infrastructure – This involves the development of essential facilities and systems, such as energy grids and terminals, highlighted by Equinor's redevelopment of the South Brooklyn Marine Terminal and wind project construction.
Finance – The article discusses financial aspects like capital investment and debt financing, crucial to the project's success and execution.

Financials

USD 5 billion – Total expected capital investment for the Empire Wind 1 project, including infrastructure fees and potential tax credits.
USD $155.00/MWh – Agreed strike price for electricity provided to NYSERDA over a 25-year period under the Purchase and Sale Agreement.

Participants

Name	Role	Type	Description
Equinor ASA	Managing and executing Empire Wind 1 project	Company	A Norwegian multinational energy company focusing on both renewable and hydrocarbon resources.
New York State Energy Research and Development Authority (NYSERDA)	Purchaser of electricity	Government	A government authority focused on developing and distributing renewable energy within New York State.
Jens Økland	Acting Executive Vice President for Renewables in Equinor	People	Responsible for strategic and operational leadership in Equinor's renewable energy initiatives.
Molly Morris	Senior Vice President for Renewables in Americas	People	Leading renewable projects across America, focusing on expanding the energy portfolio.