Equinor announced that its Empire Wind 1 offshore wind project in the United States has secured a financing package exceeding $3 billion. A financial close was reached in December 2024 that bolstered the company’s renewable energy initiative. Empire Wind 1 will provide clean energy to 500,000 homes in New York after being fully operational in 2027.Jens Økland, acting executive vice president for Renewables in Equinor noted,“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.” Equinor Powers Up New York’s Green FutureEquinor further revealed that the total capital investment for Empire Wind 1 is $5 billion, inclusive of fees related to the South Brooklyn Marine Terminal (SBMT). The investments rely on future tax credits (ITCs) to strengthen financial viability. Construction has already begun on the 80,000-acre project that is located 15-30 miles southeast of Long Island. Moving on, the company finalized the project’s investment decision earlier in 2024 and has planned to farm down its stake in Empire Wind 1 to a new partner. This strategy aims to enhance project value while minimizing risk exposure. Additionally, Equinor executed a 25-year Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) in June 2024. Under this agreement, power will be supplied at a strike price of $155 per megawatt-hour to ensure stable revenue flow for the project.Job Creation and Economic ImpactEmpire Wind 1 will significantly boost local employment and infrastructure. The redevelopment of the South Brooklyn Marine Terminal as a state-of-the-art offshore wind hub will support over 1,000 union jobs during the construction phase. On completion, the terminal will serve as the project’s operations and maintenance hub. It will also house the onshore substation connecting Empire Wind 1 to the New York City grid. This arrangement will make Empire Wind 1 the first offshore wind project to integrate directly into the city’s power network.Molly Morris, senior vice president for Renewables in Equinor Americas said,“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 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.” Strong Financial BackingThe financing package for Empire Wind 1 reflects strong lender confidence in the project’s viability. Furthermore, leading financial institutions showed keen interest that helped in achieving competitive terms. The press release also mentio
Gio. Gen 9th, 2025
