Equinor’s Empire Wind 1 Project Secures $3 Billion Financing Package
Equinor’s Empire Wind 1 project in the United States has reached a major milestone by securing a project financing package exceeding $3 billion. The financial close was completed at the end of December 2024.
The total capital investments for the project, including fees for the use of the South Brooklyn Marine Terminal (SBMT), are estimated to be around $5 billion, taking into account expected future tax credits (ITCs).
Project Overview
The Empire Wind lease was awarded to Equinor in 2017 and is being developed in two phases. Empire Wind 1 has a contracted capacity of 810 MW, while Empire Wind 2 has a potential capacity of over 1,200 MW.
In June 2024, Equinor signed a 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.
Equinor has expressed its intention to farm down its stake in the Empire Wind 1 project to a new partner in order to enhance value and reduce exposure.
Project Timeline and Impact
Empire Wind 1 is expected to power 500,000 homes in New York and is slated to commence commercial operations in 2027. Construction on the project has already begun following Equinor’s final investment decision earlier this year.
The project is located 15-30 miles southeast of Long Island, covering 80,000 acres. Empire Wind 1 will be the first offshore wind project to connect to the New York City grid.
To support the project, the South Brooklyn Marine Terminal is being transformed into a state-of-the-art offshore wind hub. The terminal will serve as the operations and maintenance (O&M) hub for Empire Wind 1 and house the project’s onshore substation.
Job Creation and Economic Growth
The redevelopment of the South Brooklyn Marine Terminal and the construction of Empire Wind 1 are expected to create over 1,000 union jobs during the construction phase. This initiative not only contributes to the growth of the renewable energy sector but also enhances US energy security and boosts economic development.
Equinor’s commitment to advancing domestic energy solutions in a safe, efficient, and sustainable manner underscores its dedication to long-term environmental stewardship and economic prosperity.
With Empire Wind 1 poised to deliver clean energy to New York City, Equinor continues to drive progress in the offshore wind industry, setting a precedent for future sustainable energy projects in the region.