The logo of Equinor is set up at the entrance of a building at Western Europe's largest liquefied natural gas plant Hammerfest LNG in Hammerfest, Norway, March 14, 2024.
Equinor, a majority state-owned energy firm, stated it has suspended marine activities related to the project and is exploring legal options, including a potential appeal. The company is also engaging with U.S. authorities to clarify the reasons behind the order. Equinor secured a federal lease for the project’s site off the Atlantic coast in 2017 and began construction in 2024 after receiving approval in 2023.
The Empire Wind I project, with an 810-megawatt capacity, is designed to supply electricity to approximately 500,000 homes annually and was slated for operation in 2027. Equinor has invested $2 billion in the project, which employs about 1,500 workers. The project’s book value is estimated at $2.5 billion, including an onshore terminal, with $1.5 billion drawn under its term loan by March 2025.
The New York State Energy Research and Development Authority (NYSERDA) expressed concern over the stop-work order. “The irrefutable harm created by this action will send a chilling signal to any party investing in the U.S. market, all of whom rely on regulatory certainty,” said NYSERDA head Doreen M. Harris in a statement.
The halt affects other industry players. Germany’s RWE, involved in the Community Offshore Wind project in the New York Bight, has scaled back its U.S. offshore wind investments. “In view of the current regulatory and political environment, we had reduced the scope of our further development activities to a minimum,” RWE stated. Dutch company SIF Holding, which constructs steel foundations for offshore wind turbines, reported a significant financial impact, with its shares dropping 7.6% in Amsterdam. Danish firm Vestas, contracted to supply 54 turbines for Empire Wind I starting in 2026, declined to comment.
Equinor, a major player in U.S. oil and gas with a 2024 output of 341,000 barrels of oil equivalent per day, has invested over $60 billion in the U.S. across oil, gas, and renewable energy. The stop-work order introduces uncertainty for the Empire Wind I project and the broader offshore wind industry in the U.S.
