Energy company Equinor said it has secured $3 billion in financing for its Empire Wind 1 project, an 810-megawatt turbine array planned to begin commercial power production for New York in 2027.
The financing package closed at the end of December, Equinor officials said in a statement Jan. 2. Total expected capital investments, including fees for the project’s use of the South Brooklyn Marine Terminal, “are approximately $5 billion including the effect of expected future tax credits,” according to the company.
Equinor acquired its Empire Wind lease area from the Bureau of Ocean Energy Management in 2017. With its wedge-shaped location between shipping lanes to New York Harbor, Empire Wind has been emblematic of New York State’s ambitions for building a renewable energy infrastructure.
“Equinor made a final investment decision on the wholly owned and operated Empire Wind 1 project earlier this year” and construction is underway, according to the company. The 80,000-acre Empire Wind 1 tract is 15-30 miles southeast of Long Island. When operational Empire Wind 1 would be the first offshore wind project to connect directly into the New York City grid.
In 2020, bp took on a 50% share of Equinor’s Empire Wind and Beacon Wind assets for a total consideration of $1.1 billion. In 2022 the partners and New York officials signed an agreement to upgrade the South Brooklyn Marine Terminal into a major East Coast port hub for developing offshore wind power projects.
In April 2024, Equinor took full ownership of Empire Wind and bp took full ownership of Beacon Wind, through a cash-neutral swap transaction. Two months later Equinor announced a Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority for Empire Wind 1 power for 25 years at a strike price of USD $155 per megawatt-hour.
With financing in place, “Equinor intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure,” according to the company’s statement.
“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,” said Jens Økland, acting executive vice president for Renewables in Equinor.
“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,” said Molly Morris, senior vice president for Renewables in Americas.
“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.”
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