Norwegian energy giant Equinor secures $3bn financing for Empire Wind 1 project

Norwegian energy giant Equinor has successfully secured a $3 billion financing package for its Empire Wind 1 project in the United States. The company announced that the project was able to secure competitive terms due to strong interest from lenders.

According to Equinor, the project is part of the Empire Wind lease, which is being developed in two phases – Empire Wind 1 with a contracted capacity of 810 MW and Empire Wind 2 with a potential capacity of more than 1.2GW.

The total capital investments for the project, including fees for using the South Brooklyn Marine Terminal, are estimated to be around $5 billion, taking into account expected future tax credits.

The Empire Wind lease area was awarded in 2017, and Equinor signed a Purchase and Sale Agreement with the New York State Energy Research and Development Authority for Empire Wind 1 power for 25 years at a strike price of $155 per MWh. This project is expected to power 500,000 New York homes and is set to begin commercial operations in 2027.

Equinor has expressed its intention to farm down in the Empire Wind 1 project to a new partner to enhance value further and reduce exposure. Following a swap of asset stakes with BP, Equinor is now the sole owner of the project.

The final investment decision for the wholly owned and operated Empire Wind 1 was made by Equinor last year, and construction has already commenced. The project is located southeast of Long Island and spans over 325 sq km.