OSLO (Reuters) -Norway’s Equinor will halt offshore construction of its Empire Wind I project in New York state, following a stop-work order from U.S. Interior Secretary Doug Burgum, the company said on Thursday.
The sudden order marks a major blow for the company and the nascent U.S. offshore wind industry, which previously enjoyed substantial support as part of former President Joe Biden’s plan to decarbonise the power grid and combat climate change.
“We have decided to stop offshore construction of the project following the order,” Equinor’s spokesperson told Reuters.
“We will engage with the administration to find out why the order was issued after we had received all the permits previously,” she added.
The company said later in a statement it had taken immediate steps to initiate suspension of relevant marine activities, ensuring the safety of workers and the environment.
It was considering its legal remedies, including appealing the order, Equinor added.
Equinor declined to comment on the potential consequences for the project going forward, but said it would continue the construction of the South Brooklyn Marine Terminal (SBMT), a facility dedicated to offshore wind operations and maintenance.
The Interior Department decision stems from a review of offshore wind permitting and leasing that President Donald Trump ordered on his first day back in office in January.
Interior officials did not respond to a request for additional comment.
BIDEN APPROVAL
Equinor has already spent some $2 billion on the Empire Wind project, which was approved by the Biden administration in November 2023.
Construction began last year, putting more than 1,500 people to work in the U.S., Equinor said.
The project’s 810-megawatt capacity could generate enough electricity to power 500,000 homes a year and was expected to begin operating in 2027.
Empire Wind’s book value was estimated at around $2.5 billion including SBMT, while the project has drawn around $1.5 billion under its finance term loan as of end of March.
Equinor is also a significant investor in U.S. oil and gas production, with its U.S. output accounting for 341,000 barrels of oil equivalent per day in 2024.
The company said it had invested more than $60 billion in the United States to date, including in oil, gas and renewables.
SIF Holding, the Dutch builder of huge steel foundations for offshore wind turbines, said it would also take a significant hit from the decision to halt construction of the Empire Wind I project. The company told Dutch daily De Telegraaf it would deliver 54 foundations to the offshore wind farm, while it has a capacity to produce a total of around 200 a year. Sif shares closed down 7.6% in Amsterdam on Thursday.
(Reporting by Nerijus Adomaitis, Editing by Essi Lehto, Joe Bavier and Ed Osmond)
