Equinor Reaches Financial Close for Empire Wind 1 Offshore Wind Project
Equinor’s Empire Wind 1 project in the United States has now secured a project financing package of over $3 billion, reaching a financial close at the end of December 2024.
The expected total capital investments, including fees for the use of the South Brooklyn Marine Terminal (SBMT), are approximately $5 billion including the effect of expected future tax credits (ITCs).
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 June 2024, Equinor 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.
Equinor said it plans to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.
To remind, in 2020, BP farmed into a 50% share of Equinor’s Empire Wind and Beacon Wind assets for a total consideration of $1.1 bn.
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.
Empire Wind 1 will power 500,000 New York homes and is expected to reach its commercial operation date in 2027.
“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.
"Our redevelopment of the SBMT 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,” said Molly Morris, senior vice president for Renewables in Americas.
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.
To support the project, an agreement was signed to transform the SBMT into a world-class offshore wind hub in 2022.
SBMT is set to become the nation’s largest dedicated port facilities for offshore wind in the U.S. It will serve as the operations and maintenance (O&M) hub for Empire Wind 1 and will be the site of the project’s onshore substation.
The redevelopment of the South Brooklyn Marine Terminal and construction of Empire Wind 1 will create more than 1,000 union jobs in the construction phase.
- Empire Wind 1 Gets New York Construction Approval
- Construction Begins at South Brooklyn Marine Terminal
- Equinor Orders Vestas’ 15MW Turbines for Empire Wind 1 Project