The president and chief executive of Equinor, one of the world’s largest energy companies, says the US government acted unlawfully when it halted construction of the Empire Wind 1 offshore windfarm
Announcing the company’s first quarter 2025 results, Equinor president and chief executive Anders Opedal said of the decision by the Secretary of Interior Doug Burgum to direct the immediate halt of construction activity, “We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful.
“This is a question of the rights and obligations granted under legally issued permits, and security of investments based on valid approvals. We seek to engage directly with the US administration to clarify the matter and are considering our legal options.”
He noted that, after quarter close, Equinor received a halt work order from the US government on the offshore construction on the outer continental shelf for the Empire Wind project. The lease was obtained in 2017 and the project was fully permitted in 2024. It has a potential for delivering power to half a million New York homes, and is approximately 30% to completion.
Equinor is complying with the order and is seeking dialogue with the proper authorities and assessing legal options. As of 31 March 2025, the Empire Wind project had a gross book value of around US$2.5Bn, including South Brooklyn Marine Terminal.
Equinor executed a purchase and sale agreement with the New York State Energy Research and Development Authority for the power generated by Empire Wind 1 in mid-2024. The company secured a project financing package of more than US$3Bn for Empire Wind 1 in late 2024. The total capital investment in the project, including fees for the use of the South Brooklyn Marine Terminal (SBMT) are approximately US$5Bn.
With a contracted capacity of 810 MW, Empire Wind 1 would have been the first offshore wind project to connect into the New York City grid. The redevelopment of the SBMT and construction of Empire Wind 1 will create more than 1,000 union jobs in the construction phase.
New York Governor Kathy Hochul has described the decision as “a clear example of Federal overreach.”
