Equinor introduced that its Empire Wind 1 offshore wind challenge in the US has secured a financing package deal exceeding $3 billion. A monetary shut was reached in December 2024 that bolstered the corporate’s renewable power initiative. Empire Wind 1 will present clear power to 500,000 houses in New York after being totally operational in 2027.
Jens Økland, performing govt vp for Renewables in Equinor famous,
“This is an important milestone for Equinor, in line with our plan to enhance value and reduce exposure in the Empire Wind 1 project. As we now enter full execution mode, we continue our efforts to increase robustness and value-creation in the project.”
Equinor Powers Up New York’s Inexperienced Future
Equinor additional revealed that the whole capital funding for Empire Wind 1 is $5 billion, inclusive of charges associated to the South Brooklyn Marine Terminal (SBMT). The investments depend on future tax credit (ITCs) to strengthen monetary viability. Building has already begun on the 80,000-acre challenge that’s positioned 15-30 miles southeast of Lengthy Island.
Shifting on, the corporate finalized the challenge’s funding choice earlier in 2024 and has deliberate to farm down its stake in Empire Wind 1 to a brand new associate. This technique goals to boost challenge worth whereas minimizing threat publicity.
Moreover, Equinor executed a 25-year Buy and Sale Settlement (PSA) with the New York State Vitality Analysis and Growth Authority (NYSERDA) in June 2024. Underneath this settlement, energy will likely be provided at a strike value of $155 per megawatt-hour to make sure secure income circulation for the challenge.
Job Creation and Financial Influence
Empire Wind 1 will considerably enhance native employment and infrastructure. The redevelopment of the South Brooklyn Marine Terminal as a state-of-the-art offshore wind hub will help over 1,000 union jobs throughout the building part.
On completion, the terminal will function the challenge’s operations and upkeep hub. It would additionally home the onshore substation connecting Empire Wind 1 to the New York Metropolis grid. This association will make Empire Wind 1 the primary offshore wind challenge to combine immediately into the town’s energy community.
Molly Morris, senior vp for Renewables in Equinor Americas stated,
“Today’s financial close maintains our momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen US energy security, build economic growth and fuel a new American supply chain. Our redevelopment of the South Brooklyn Marine Terminal is already putting more than 1,000 people to work. Equinor is proud to play a part in advancing domestic energy solutions safely, efficiently, and for the long term.”
Robust Monetary Backing
The financing package deal for Empire Wind 1 displays robust lender confidence within the challenge’s viability. Moreover, main monetary establishments confirmed eager curiosity that helped in attaining aggressive phrases.
The press release additionally talked about that the ultimate group of lenders included a few of the most skilled gamers within the renewable power sector, in addition to a number of of Equinor’s long-standing banking companions.
Empire Wind Supporting New York’s Renewable Vitality Targets
New York State has set bold renewable power targets, and Equinor’s offshore wind projects are enjoying a pivotal position right here. Empire Wind is being developed in two phases: Empire Wind 1 and Empire Wind 2. Whereas Empire Wind 1 has a contracted capability of 810 MW, Empire Wind 2 has the potential to generate 1,260 MW. Collectively, the 2 tasks are anticipated to provide clear power to multiple million houses.
Empire Wind 2 is at the moment being re-evaluated for future solicitations. In the meantime, Empire Wind 1’s first energy supply is anticipated within the mid-2020s which can additional advance New York’s transition to renewable energy.
Historical past of Empire Wind
- 2017: Equinor acquired the Empire Wind lease space after the Bureau of Ocean Vitality Administration’s public sale in December 2016.
- 2020: BP acquired a 50% stake in Equinor’s Empire Wind and Beacon Wind property for $1.1 billion.
- 2022: Equinor signed an settlement to remodel South Brooklyn Marine Terminal (SBMT) right into a premier offshore wind hub.
- April 2024: Equinor assumed full possession of Empire Wind tasks, whereas BP took over the Beacon Wind property, via a cash-neutral transaction.
- June 2024: Equinor secured the PSA with New York State for a 25-year energy provide settlement at $155/MWh.
Supply: Equinor: Empire Wind
South Brooklyn Marine Terminal: A Recreation-Changer for Offshore Wind
The South Brooklyn Marine Terminal is ready to turn out to be the biggest devoted offshore wind port facility within the U.S. This redevelopment underscores Equinor’s dedication to fostering native financial development and advancing renewable power infrastructure.
The terminal will deal with staging, pre-assembly, and long-term upkeep operations for Empire Wind 1. This can definitely solidify its help for New York’s clear power transformation objectives.
Future Prospects for the U.S. Offshore Wind Vitality
NYSERDA President and CEO Doreen M. Harris famous within the earlier press launch,
“Major renewable energy infrastructure projects such as Empire Wind 1 are a crucial component in reaching toward New York’s climate goals. NYSERDA applauds Equinor for its ongoing commitment to investing in New York’s green economy, including the redevelopment of South Brooklyn Marine Terminal, and helping to stand-up New York’s offshore wind industry one significant milestone at a time.”
Thus, Equinor’s funding in Empire Wind aligns with the U.S. offshore wind trade’s rising momentum. The challenge’s integration into the New York Metropolis grid highlights its significance in assembly city power calls for sustainably. By harnessing robust wind sources off Lengthy Island’s coast, Empire Wind 1 is taking an enormous step to decarbonize the power sector.
Supply: Nationwide Renewable Vitality Laboratory Offshore Wind Market Report
With a dependable financing backup and correct building plans, Empire Wind 1 is all set to ship renewable power to New York. Equinor is hopeful that the challenge’s success may lead by instance for future offshore wind initiatives throughout the U.S.
