Equinor Suspends Empire Wind Construction Upon BOEM Order
Deal News | Apr 17, 2025 | Equinor ASA
Equinor ASA, a leading energy company, has suspended its offshore construction activities for the Empire Wind project following an order from the Bureau of Ocean Energy Management (BOEM) to halt all operations on the outer continental shelf until the agency completes its review. Empire Wind 1, which is part of Equinor’s venture, has been under construction to provide electricity to New York, backed by a contract with the New York State Energy Research and Development Authority (NYSERDA). Upon receiving the halt order, Equinor promptly initiated the suspension of marine activities to ensure worker and environmental safety. They are currently engaging with relevant authorities to clarify the situation and are considering legal actions, such as appealing. The project, with a gross book value of approximately USD 2.5 billion by March 2025, has the capability to power 500,000 homes in New York. The project finance term loan facility has a current drawdown of USD 1.5 billion. Equinor US Holdings Inc has provided guarantees for the equity commitment in the project financing. The halt will be noted as a subsequent event in the 2025 first-quarter report. Equinor has a prolific history in the US, with over 60 billion USD invested across oil, gas, and renewable energy sectors.
Sectors
- Energy Infrastructure
- Renewable Energy
Geography
- United States – The Empire Wind project is located within the U.S. and involves U.S. federal agencies and infrastructure commitments.
Industry
- Energy Infrastructure – The article deals with offshore wind energy infrastructure projects carried out by Equinor in the United States.
- Renewable Energy – Empire Wind is a renewable energy project designed to provide sustainable electricity to New York.
Financials
- $2.5 billion – The gross book value of Empire Wind as of March 2025.
- $1.5 billion – The total amount drawn under the project finance term loan facility as of March 2025.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Equinor ASA | Parent Company | Company | A broad energy company involved in the Empire Wind project and has a significant history of investments in the U.S. |
| Empire Offshore Wind LLC | Target Company | Company | The company responsible for the construction and development of the Empire Wind project. |
| Bureau of Ocean Energy Management (BOEM) | Regulatory Authority | Government | The federal agency that issued the halt order on offshore activities for Empire Wind. |
| New York State Energy Research and Development Authority (NYSERDA) | Contract Partner | Government | Contracted with Empire Wind to provide power to New York. |