In accordance with a halt work order issued by the US government, Empire Offshore Wind LLC will safely halt the offshore construction in waters of the outer continental shelf for the Empire Wind project.
On 16 April 2025, Empire received notice from the Bureau of Ocean Energy Management (BOEM), ordering Empire to halt all activities on the outer continental shelf until BOEM has completed its review.
Empire is engaging with relevant authorities to clarify this matter and is considering its legal remedies, including appealing the order.
The federal lease for Empire Wind was signed with the US Administration in 2017. Empire Wind 1 has validly secured all necessary federal and state permits and is currently under construction. The project is being developed under contract with the New York State Energy Research and Development Authority (NYSERDA) to provide an important new source of electricity for the State of New York. The construction phase has put more than 1500 people to work in the US. Empire Wind 1 has the potential to power 500 000 New York homes.
Empire is complying with the order affecting project activities for Empire Wind. Upon receipt of the order, immediate steps were taken by Empire and its contractors to initiate suspension of relevant marine activities, ensuring the safety of workers and the environment.
Empire Wind has, per 31 March 2025, a gross book value of around US$2.5 billion, including South Brooklyn Marine Terminal.
Equinor’s ownership to Empire is held through the Equinor Wind US LLC.
Total amount drawn under the project finance term loan facility per 31 March 2025, was around US$1.5 billion. Empire is in the process of ascertaining the impact on the project and project financing. Equinor US Holdings Inc has provided guarantees for the equity commitment in the project financing. In a full stop scenario, the US$1.5 billion will be repaid from the equity commitment to the project finance lenders and Empire Offshore Wind LLC will be exposed to termination fees towards its suppliers.
The halt work order will be disclosed as a subsequent event in 1Q25 report.
For more news and technical articles from the global renewable industry, read the latest issue of Energy Global magazine.
Energy Global’s Spring 2025 issue
The first issue of 2025 is here! The Spring issue of Energy Global starts with a guest comment by Tim Reid from UK Export Finance about expanding operations overseas before a regional report from Aurora Energy Research no the effect of negative electricity prices in Europe. Other interesting topics covered in the issue include electrical infrastructure, sit surveys & mapping, developments in solar, and much more. Featuring contributions from key industry leaders such as EM&I, DeterTech, and Global Underwater Hub, among others, don’t miss the valuable insights available in the Spring 2025 issue.
Read the article online at: https://www.energyglobal.com/wind/22042025/equinor-suspends-offshore-construction-activities-for-the-empire-wind-project/
#Equinor #suspends #offshore #construction #activities #Empire #Wind #project