Equinor secures financial close for Empire Wind 1 project in New York

Equinor’s Empire Wind 1 project in the US has secured a project financing package of more than US $3 billion, with the financial close reached at the end of December 2024.

Empire Wind 1 will power 500,000 New York homes and is expected to reach its commercial operation date in 2027, Equinor said in a statement. The expected total capital investments, including fees for the use of the South Brooklyn Marine Terminal (SBMT), are approximately USD 5 billion including the effect of expected future tax credits (ITCs), the company said.

Equinor acquired the Empire Wind lease area in 2017 and in June 2024, it announced the execution of the 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 $155.00/MWh. The investment level and support framework are in line with the developing US offshore wind industry.

Equinor intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure, the company said.

“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.”

Equinor made a final investment decision on the wholly owned and operated Empire Wind 1 project earlier this year. Construction has already begun. Empire Wind 1 is located 15-30 miles southeast of Long Island and spans 80,000 acres. With a contracted capacity of 810 MW, Empire Wind 1 will be the first offshore wind project to connect into the New York City grid. The redevelopment of the South Brooklyn Marine Terminal (SBMT) and construction of Empire Wind 1 will create more than 1,000 union jobs in the construction phase.

The Empire Wind lease was awarded to Equinor in 2017. It is being developed in two phases, Empire Wind 1, with a contracted capacity of 810 MW, and Empire Wind 2, with a potential capacity of more than 1,200 MW. In April 2024, Equinor took full ownership of the Empire Wind lease and projects and bp took full ownership of the Beacon Wind lease and projects, through a cash-neutral swap transaction. SBMT is set to become the nation’s largest dedicated port facilities for offshore wind in the US, serving as the operations and maintenance (O&M) hub for Empire Wind 1.