Equinor has secured a financing package of over $3 billion for its Empire Wind 1 project. The company said it will be the first offshore wind project to connect into the New York City grid.
Empire Wind 1 is expected to power 500,000 New York homes and is expected to reach its commercial operation date in 2027. The South Brooklyn Marine Terminal (SBMT), which 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, is set to become the nation’s largest dedicated port facility for offshore wind in the U.S., 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,” said Jens Økland, acting executive vice president for Renewables in Equinor.
The expected total capital investments, including fees for the use of the SBMT, are approximately $5 billiion including the effect of expected future tax credits.
Equinor acquired the Empire Wind lease area in 2017. In June 2024, the company 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 USD $155.00/MWh.
Equinor intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.
“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,” said Molly Morris, senior vice president for Renewables in Americas. “Our redevelopment of the South Brooklyn Marine Terminal is already putting more than 1,000 people to work.”
