Key Points
- Equinor secured $3 billion in financing for the Empire Wind 1 offshore wind project, estimated to cost $5 billion, including fees for the South Brooklyn Marine Terminal.
- The project will power 500,000 New York homes and begin operations in 2027.
- The South Brooklyn Marine Terminal will be a key operational hub.
- The project aligns with New York’s renewable energy goals and Equinor’s U.S. expansion strategy.
Norwegian energy company Equinor has announced that it is securing over $3 billion in financing for its Empire Wind 1 offshore wind power project in the United States. The project, set to supply renewable energy to New York, marks a significant step in the company’s expansion into the U.S. green energy market.
Equinor estimates total capital investments for Empire Wind 1, including fees associated with the South Brooklyn Marine Terminal, to reach approximately $5 billion. These figures incorporate the anticipated benefits of future tax credits.
The Empire Wind 1 project will generate enough clean energy to power 500,000 New York homes and is slated for commercial operation by 2027. Equinor emphasized that it plans to farm down its stake in the project to a new partner. This strategic move aims to optimize the project’s value while mitigating financial exposure.
The financing and strategic adjustments reflect Equinor’s commitment to diversifying its energy portfolio and supporting the transition to renewable energy in the U.S. The project’s location off the coast of New York puts it at the center of a growing offshore wind market that has garnered substantial support from both the government and the private sector.
Equinor’s use of the South Brooklyn Marine Terminal as a staging and operations hub underscores its focus on local economic development. The terminal is expected to play a key role in assembling and maintaining the offshore wind infrastructure, further enhancing New York’s status as a renewable energy hub.
The Empire Wind initiative, of which Empire Wind 1 is a part, represents a broader partnership between Equinor and BP. Together, they aim to establish a robust offshore wind presence in the U.S., leveraging their combined expertise to address the rising demand for clean energy. This collaboration aligns with New York’s ambitious clean energy targets, which include generating 70% of electricity from renewable sources by 2030.