Equinor Secures $3 Billion in Project Financing for Empire Wind 1 Offshore Wind Farm

A project financing package was successfully completed at the end of December, marking a significant milestone in the development of the Empire Wind 1 offshore wind farm off the Northern U.S. Coast. Equinor, the project developer, announced that it secured over $3 billion in project financing on competitive terms, thanks to the strong interest from lenders.

Empire Wind 1, located between 15 and 30 miles southeast of Long Island, is already in the initial stages of construction and is projected to commence commercial operations in 2027.

Jens Økland, acting executive vice president for Renewables in Equinor, stated, “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.”

The lease for Empire Wind 1 was awarded to Equinor in 2017. In 2020, it became part of a joint venture with BP for offshore wind development, which was dissolved in 2024. Equinor now holds full ownership of Empire Wind and is moving forward with the project, expected to involve a total investment of $5 billion.

While progressing with the project, Equinor aims to bring on a new partner to further enhance value and mitigate risks. Private equity investors have shown interest in partnering with projects at the development stage.

Project Details

Empire Wind comprises two phases, with the first phase having a contracted capacity of 810 MW. A 25-year Purchase and Sale Agreement for the power from Empire 1 was signed in June 2024 with NYSERDA (New York State Energy Research and Development Authority).

Empire Wind 1 is also involved in the redevelopment of the South Brooklyn Marine Terminal to support the project. New York City is backing the initiative to develop the wind terminal, which is anticipated to create over 1,000 union jobs during the construction phase.

Empire Wind 2, the second wind farm in the project, is currently in the early planning and regulatory approval stages. It has a potential capacity exceeding 1,200 MW.

Impact on New York Grid

Equinor’s successful project financing agreement signifies a significant step forward in providing a substantial power source to the New York grid. The company’s commitment to offshore wind development aligns with the state’s renewable energy goals and contributes to a greener energy future.