Equinor has secured a financing package of over USD 3 billion for its Empire Wind 1 offshore wind project in the United States.
Empire Wind 1, expected to become operational in 2027, will provide renewable energy to approximately 500,000 homes in New York. The project, located 15-30 miles southeast of Long Island, spans 80,000 acres and boasts a contracted capacity of 810 MW. Total capital investments, including fees for the redevelopment of the South Brooklyn Marine Terminal (SBMT), are projected at around USD 5 billion, factoring in future tax credits (ITCs).
Equinor acquired the Empire Wind lease in 2017 and finalised a 25-year Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority in June 2024. Under the agreement, power will be delivered at a strike price of USD 155.00/MWh, aligning with the evolving US offshore wind industry’s investment framework.
Equinor plans to farm down its stake in Empire Wind 1 to a new partner, aiming to enhance project value and reduce financial exposure. Jens Økland, acting executive vice president for Renewables at Equinor 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.”
Construction activities have already begun, with the redevelopment of the South Brooklyn Marine Terminal creating over 1,000 union jobs during the construction phase. Molly Morris, senior vice president for Renewables in Americas said, “Empire Wind 1 will strengthen US energy security, build economic growth, and fuel a new American supply chain.”
The debt financing for the project attracted strong interest from lenders, enabling competitive terms. The financing consortium includes experienced lenders in the offshore wind sector and Equinor’s long-standing banking partners.
Empire Wind 1 will be the first offshore wind project to connect directly to the New York City grid, reinforcing the city’s transition to clean energy and advancing domestic energy solutions.
