Equinor announced it secured a financing package of over $3 billion to advance Empire Wind 1 offshore wind power project in the US. With this funding, the company expects the total capital investments, like fees for using the South Brooklyn Marine Terminal, to be about $5 billion, including the effect of future tax credits.
Empire Wind 1 will power 500,000 New York homes and is expected to reach its commercial operation date in 2027. The expected total capital investments, including fees for using the South Brooklyn Marine Terminal (SBMT), are about $5 billion, including the effect of expected future tax credits (ITCs).
Equinor acquired the Empire Wind lease area in 2017. And in June 2024, Equinor 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 $155.00/MWh. This investment level and support framework align with the developing US offshore wind industry.
Equinor plans to farm down in the Empire Wind 1 project to a new partner to enhance value further and reduce exposure.
Equinor made a final investment decision on the wholly owned and operated Empire Wind 1 project earlier this year. And construction has already started.
Empire Wind 1 is based 15-30 miles southeast of Long Island and spans 80,000 acres. And with a contracted capacity of 810 MW, Empire Wind 1 will be the first offshore wind project to connect into the New York City grid. The redevelopment of the South Brooklyn Marine Terminal and construction of Empire Wind 1 will create more than 1,000 union jobs in the construction phase.
This debt financing of the project has reached a financial close. Due to strong interest from lenders, the Empire Wind 1 project was able to secure competitive terms. And the final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks.
KEY QUOTES:
“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.”
- Jens Økland, acting executive vice president for Renewables in Equinor
“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.”
- Molly Morris, senior vice president for Renewables in Americas
