Equinor has paused construction activities on its 810-megawatt Empire Wind 1 offshore wind project off the coast of New York following a directive from the U.S. Department of the Interior, issued under the Trump administration.
The Norwegian energy company stated that it is complying with the federal order while reviewing potential legal responses. “Empire is complying with the order affecting project activities for Empire Wind,” the company said. “Upon receipt of the order, immediate steps were taken by Empire and its contractors to initiate suspension of relevant marine activities, ensuring the safety of workers and the environment.”
The decision stems from an announcement made by Interior Secretary Doug Burgum, who instructed the Bureau of Ocean Energy Management (BOEM) to halt construction pending further evaluation. “We are directing BOEM to immediately halt all construction activities on the Empire Wind Project until further review of information that suggests the Biden administration rushed through its approval without sufficient analysis,” Burgum said Wednesday evening.
Equinor noted that it holds a gross book value of approximately $2.5 billion in the Empire Wind 1 project, which includes its investment in the South Brooklyn Marine Terminal. The company also disclosed that roughly $1.5 billion has been drawn under a project finance term loan facility. Equinor is currently assessing the full implications of the federal order on both the project’s development and its financial structure.
The company emphasized that it is “considering its legal remedies, including appealing the order.
