Equinor announced a suspension of offshore construction activities in the outer continental shelf for the Empire Wind project following an order from the US government.
Empire Offshore Wind LLC, a subsidiary of Equinor, received a notice from the Bureau of Ocean Energy Management (BOEM) on April 16 to cease all activities on the outer continental shelf pending BOEM’s review.
Equinor stated it is complying with the order and has begun suspending relevant marine operations. Discussions with authorities are ongoing to clarify the situation, and the company is considering legal options, including an appeal, according to an April 17 press release.
The federal lease for Empire Wind was finalized in 2017, with Empire Wind 1, the project’s first phase, having secured all necessary permits. The project, developed under contract with the New York State Energy Research and Development Authority (NYSERDA), aims to supply power to New York and has already created over 1,500 jobs in the U.S.
Empire Wind holds a gross book value of approximately USD 2.5 billion, as of March 31, 2025, encompassing the South Brooklyn Marine Terminal. This terminal, a vital element of the 810 MW Empire Wind 1 project, is being transformed into an offshore wind hub.
On March 31, 2025, about USD 1.5 billion had been drawn from the project finance term loan facility. In case of a full stop, this amount will be repaid from the equity commitment, exposing Empire Offshore Wind LLC to termination fees. Equinor US Holdings Inc has guaranteed the equity commitment in the project financing.
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