Equinor has secured over USD 3 billion (approximately EUR 2.9 billion) in project financing and reached financial close on Empire Wind 1, the first offshore wind farm to connect to New York City’s grid. This project is currently under construction following Equinor’s final investment decision (FID) earlier this year.
Total capital investments, including South Brooklyn Marine Terminal (SBMT) fees, are about USD 5 billion (approx. EUR 5 billion) considering potential tax credits, according to Equinor’s statement on 2 January. Equinor also intends to bring in a new partner for Empire Wind 1.
Regarding debt financing, Equinor secured competitive terms due to significant lender interest, involving experienced sector lenders and Equinor’s relationship banks.
After acquiring the Empire Wind lease in 2017, Equinor entered a power purchase agreement with the New York State Energy Research and Development Authority (NYSERDA) in June 2024. The project is set to be operational in 2027, aiming to supply power to 500,000 New York homes over 25 years at a strike price of USD 155.00/MWh (EUR 150.71/MWh).
The 810 MW offshore wind farm, initially owned by Equinor and BP, saw a restructuring in January 2024. Equinor now fully controls Empire Wind 1 and 2, while BP has full ownership of the 2.5 GW Beacon Wind project.
Empire Wind 1, located 25-48 kilometers (15-30 miles) southeast of Long Island, will feature 54 Vestas 15 MW wind turbines, with first power expected in late 2026 and full commissioning in 2027.
The South Brooklyn Marine Terminal (SBMT) in Sunset Park is being transformed into a dedicated offshore wind port. It will support the deployment of V236-15.0 MW turbines by facilitating staging, pre-assembly, load-in, load-out, and transportation of components before offshore installation and commissioning.
Original Story at www.offshorewind.biz