A project financing package was completed at the end of December to continue the momentum for the development of another of the early, large offshore wind farms off the Northern U.S. Coast. Equinor reports it secured more than $3 billion in project financing for Empire Wind 1 on competitive terms due to strong interest from lenders.
The Empire Wind 1 project, which will be located between 15 and 30 miles southeast of Long Island is already in the first stages of construction. It is expected to reach commercial operations in 2027.
“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.
The lease was awarded in 2017 to Equinor but in 2020 it was part of the company’s agreement with BP to develop a joint venture for offshore wind. The JV however was dissolved in 2024 with Equinor taking full ownership of Empire Wind with the company saying it was moving forward in what is expected to be a $5 billion investment. BP took ownership of the Beacon Wind lease and projects in the swap agreement.
While work is proceeding, Equinor however reports that it intends to take on a new partner for the project to further enhance value and reduce its risk. The company did not indicate where it stands in the search for a partner but in general private equity investors have shown strong interest in projects once they reach the development stage,
The plan for Empire Wind split the lease area into two projects with the first phase having a contracted capacity of 810 MW. A 25-year Purchase and Sale Agreement for the power from Empire 1 was struck in June 2024 with NYSERDA (New York State Energy Research and Development Authority).
As part of the project, Empire Wind 1 is participating in the redevelopment of the South Brooklyn Marine Terminal to support the project. New York City is supporting the effort to develop the wind terminal which the company says will create more than 1,000 union jobs in the construction phase.
The second wind farm, Empire Wind 2, is in an early stage of planning and regulatory approval. It has a potential capacity of more than 1,200 MW.
In announcing the project financing, the company said the agreement maintains the momentum toward bringing a significant power source to the New York grid.
