Equinor has secured more than $3bn in project financing for its 810MW Empire Wind 1 offshore wind project in New York, US.
According to the Norwegian energy firm, the project achieved its financial close in late December 2024.
Located 24-48km southeast of Long Island, the Empire Wind 1 project spans 80,000 acres. It is expected to become the first offshore wind installation to connect to the New York City grid.
The Empire Wind 1 offshore wind farm is anticipated to deliver clean energy to around 500,000 households in New York upon its slated commercial operation in 2027.
Total investments, including redevelopment costs for the South Brooklyn Marine Terminal (SBMT), are estimated at $5bn, taking into account anticipated tax credits.
Construction is underway, with the project expected to create over 1,000 union jobs during the development phase.
Equinor renewables acting executive vice president Jens Økland 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.”
In June 2024, Equinor signed a purchase and sale agreement (PSA) with the New York State Energy Research and Development Authority, agreeing to supply power for 25 years.
Equinor acquired the Empire Wind lease area in 2017. BP acquired a 50% stake in Empire Wind and Beacon Wind assets in 2020 for $1.1bn.
The arrangement was restructured in April 2024 through a cash-neutral swap, giving Equinor full ownership of the Empire Wind lease and projects, while BP assumed complete ownership of the Beacon Wind lease and projects.
The Empire Wind 1 project forms part of a larger development, with Empire Wind 2 expected to add over 1.2GW of potential capacity.
Equinor plans to farm down part of its stake in the project to a new partner to enhance value and manage risk.
The SBMT redevelopment is central to the project. It will serve as the operations and maintenance hub for Empire Wind 1 offshore wind farm and house the project’s onshore substation.
