Equinor Halts Empire Wind Project After U.S. Government Orders Review
Norwegian energy giant Equinor has suspended construction on its Empire Wind offshore wind farm, located off the coast of New York, following a halt-work order issued by the U.S. government.
The decision comes amid a federal review of the project’s approval process, which critics claim was rushed and lacked adequate environmental and procedural analysis.
Equinor announced Thursday that it is reviewing the order's implications and exploring legal options, including a potential appeal.
The company also assessed the impact on the project’s timeline and financial structure.
As of the end of March, Empire Wind had a gross book value of approximately $2.5 billion, with $1.5 billion already drawn from a loan facility.
If the project is canceled entirely, Equinor said it would repay the $1.5 billion to project-finance lenders and could be liable for termination fees owed to equipment suppliers and contractors.
The Bureau of Ocean Energy Management (BOEM) issued the halt-work notice Wednesday, following a directive from the U.S. Department of Interior. In a post on X (formerly Twitter), U.S. Interior Secretary Doug Burgum stated that the Empire Wind project was approved prematurely by the Biden Administration without sufficient analysis.
The review raises questions about whether proper environmental and regulatory procedures were followed during the project’s fast-tracked approval.
Empire Wind is one of the largest offshore wind projects planned along the U.S. East Coast. A joint venture between Equinor and BP, the project is intended to provide renewable electricity to more than one million New York homes once completed.
It is also considered a cornerstone of New York State’s ambitious clean energy goals and part of President Biden’s broader agenda to boost offshore wind development.
