Equinor has closed on the finances for Empire Wind 1, a major milestone for a New York project expected to accrue $5 billion in capital costs over the next few years. 

The company announced the development Jan. 2, less than three weeks before the inauguration of a president openly hostile to offshore wind power.  

But early stage proposals in U.S. waters may be more vulnerable to this hostility than a project such as Empire Wind 1, which already has secured federal approvals and a state offtake contract, has begun onshore construction, and projects a 2027 commercial operation date. 

Molly Morris, Equinor’s senior vice president of Renewables Americas, addressed the federal political landscape at a late-October offshore wind industry conference, saying support from states — particularly New York and other East Coast states — is what has been driving the industry’s growth. (See Equinor Exec Gives Insight on Empire Wind.) 

In a Jan. 2 news release, Morris emphasized offshore wind’s value to national interests: “Today’s financial close maintains our momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen U.S. energy security, build economic growth and fuel a new American supply chain.” 

Equinor said it made its final investment decision on Empire Wind 1 in late 2024 and was able to secure competitive terms for the more-than-$3 billion package thanks to strong interest from lenders. 

Total capital investment — including the offshore wind hub now under construction in New York City and factoring in future investment tax credits — is expected to run in the $5 billion range. 

The history of Empire Wind reflects the bumpy road the offshore wind industry has traversed in the past decade while establishing itself in the United States. 

Equinor acquired wind energy lease areas off the Northeast coast as it leveraged its offshore engineering experience for a move into renewable energy. 

The Norwegian state-owned oil major teamed up with oil super major bp on Empire Wind and Beacon Wind to win contracts with New York, then saw those contracts become untenable in 2022 and 2023 due to soaring prices. 

Equinor and bp dissolved their partnership, with bp taking sole ownership of the Beacon portfolio and Equinor taking Empire. 

In 2024, Equinor won a new state contract for the 810-MW Empire Wind 1 at a much higher strike price: $155/MWh.  

Empire Wind 2 — potentially much larger, at 1,200 MW or more — was paused. 

Equinor said Jan. 2 it still is looking to farm out ownership in Empire Wind 1 to a new partner to enhance value and reduce exposure.