Equinor Halts Construction on Empire Wind Project Following Trump Administration’s Order

Equinor recently made headlines after issuing a statement regarding the Trump administration’s order to stop construction on its New York offshore wind farm, Empire Wind. The company has announced that it will comply with the order and suspend offshore work on the project, which has a gross book value of approximately $2.5 billion.

According to Equinor, it has already drawn about $1.5 billion from the project finance term loan that was completed in late 2024. The company’s US Holdings division has provided guarantees for the equity commitment in the project financing and may have to repay the $1.5 billion to project finance lenders in a full-stop scenario. Additionally, Equinor could face termination fees from its suppliers.

Both the state of New York and Equinor have emphasized the extensive review process that the Empire Wind project underwent before receiving federal and state approvals in 2024. NYSERDA, the New York State Research and Development Authority, criticized the Trump administration for showing “a complete disregard” for the project, which is New York’s largest energy infrastructure project in 50 years.

Doreen M. Harris, President and CEO of NYSERDA, expressed concern over the federal government’s interference, stating that it ignores the economic benefits that the offshore wind industry can provide. She believes that the administration’s actions will send a negative signal to investors relying on regulatory certainty.

Interior Secretary Doug Burgum raised concerns about the project’s approvals and ordered Empire Wind to cease all construction activities until a further review is completed. While Equinor plans to comply with the order and halt offshore construction, the company is also exploring legal remedies, including appealing the order.

Empire Wind, which has over 35 years of history in the U.S. and has invested over $60 billion in the country, is now facing uncertainties due to the stop work order. The broader implications of this order on the U.S. offshore wind sector remain unclear.

Implications for the Offshore Wind Sector

Several companies, including Shell and BP, have already scaled back their involvement in the U.S. offshore wind sector. The stop work order against Empire Wind has left analysts speculating about the future of offshore wind projects in the country.

The Biden administration has approved 11 offshore projects, with two projects—Vineyard Wind and Coastal Virginia Offshore Wind—currently underway. Despite challenges such as delays and pauses in construction, the offshore wind industry continues to grow in the U.S.

As the review of federal wind permitting practices continues, the fate of Empire Wind and other offshore projects hangs in the balance. The industry awaits further developments in this evolving situation.