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Empire Offshore Wind LLC (Empire) has announced it will safely pause offshore construction activities for the Empire Wind project following a stop-work order issued by the U.S. government.
On April 16, the Bureau of Ocean Energy Management (BOEM) directed Empire to halt all operations on the outer continental shelf while a regulatory review is completed. Empire is actively engaging with authorities to seek clarification and is exploring legal options, including a potential appeal.
Empire Wind’s federal lease was originally signed with the U.S. government in 2017. Empire Wind 1, which has obtained all necessary federal and state permits, is currently under construction under a contract with the New York State Energy Research and Development Authority (NYSERDA). The project aims to deliver a significant source of renewable electricity for New York State and has already created over 1,500 jobs across the U.S. Once operational, Empire Wind 1 is expected to supply power to approximately 500,000 homes.
Empire is adhering to the order impacting Empire Wind’s project activities. Upon receiving the directive, Empire and its contractors promptly began suspending relevant offshore operations, prioritizing the safety of both workers and the environment.
As of March 31, 2025, Empire Wind has a gross book value of around USD 2.5 billion, including assets at the South Brooklyn Marine Terminal. Equinor holds its ownership in Empire through Equinor Wind US LLC.
By the same date, approximately USD 1.5 billion had been drawn under the project’s term loan facility. Empire is currently assessing the halt’s impact on the project’s status and financing. Equinor US Holdings Inc. has guaranteed the equity commitments related to project financing. In the event of a complete project termination, the USD 1.5 billion would be repaid from the equity commitments to the lenders, and Empire Offshore Wind LLC would face termination fees from its suppliers.
The halt order will be formally disclosed as a subsequent event in Equinor’s first quarter 2025 financial report.
Equinor, a global energy company with a 35-year presence in the U.S., has invested over USD 60 billion in the country across oil, gas, and renewable energy sectors.
