Equinor's Empire Wind 1 project in the United States has achieved a major milestone by securing over $3 billion in project financing, reaching financial close in December 2024. This landmark offshore wind initiative, expected to become operational in 2027, will provide clean energy to 500,000 homes in New York. The project's total capital investment is projected to be approximately $5 billion, inclusive of costs related to the South Brooklyn Marine Terminal (SBMT) and anticipated future tax credits (ITCs).

The Empire Wind lease area was acquired by Equinor in 2017, and in June 2024, the company finalized a 25-year Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority. Under the agreement, the strike price for power is set at $155.00 per megawatt-hour. The investment level aligns with the growth trajectory of the U.S. offshore wind sector, reflecting its evolving support framework.

Equinor plans to farm down its stake in the Empire Wind 1 project by bringing in a new partner, optimizing value while mitigating financial exposure. Jens Økland, acting executive vice president for Renewables at Equinor, emphasized the importance of this milestone, stating, “This step aligns with our strategy to strengthen value creation and enhance project robustness as we move into full execution mode.”

The Empire Wind 1 project is poised to strengthen U.S. energy security, foster economic growth, and establish a robust domestic supply chain. Molly Morris, senior vice president for Renewables in the Americas, highlighted the redevelopment of the South Brooklyn Marine Terminal, which has already created over 1,000 jobs. “Equinor is proud to contribute to safe, efficient, and long-term domestic energy solutions,” she added.

Construction on the 810 MW capacity project is already underway. Located 15-30 miles southeast of Long Island and spanning 80,000 acres, Empire Wind 1 will be the first offshore wind project to connect directly to New York City's grid. The redevelopment of SBMT and the project's construction phase will generate over 1,000 union jobs, bolstering local employment.

The debt financing for Empire Wind 1 saw strong interest from lenders, enabling Equinor to secure competitive terms. The final group of lenders includes some of the most experienced financial institutions in the renewable energy sector, along with many of Equinor’s long-standing banking partners. This achievement underscores Equinor’s commitment to advancing renewable energy projects that drive sustainability, economic growth, and energy resilience.

The Empire Wind project, awarded to Equinor in 2017, is being developed in two phases. Empire Wind 1 has a contracted capacity of 810 MW, while Empire Wind 2 is projected to exceed 1,200 MW. In 2020, bp acquired a 50% stake in Equinor’s Empire Wind and Beacon Wind assets for $1.1 billion. By 2022, Equinor and bp signed an agreement to transform the South Brooklyn Marine Terminal (SBMT) into a world-class offshore wind hub.

In April 2024, Equinor gained full ownership of the Empire Wind lease and projects, while bp took sole ownership of the Beacon Wind lease and projects through a cash-neutral swap. Shortly after, in June 2024, Equinor finalized a 25-year Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority for Empire Wind 1 power at a strike price of $155.00 per megawatt-hour.

SBMT is set to become the largest dedicated port facility for offshore wind in the U.S. It will serve as the operations and maintenance hub for Empire Wind 1 and house the project’s onshore substation, reinforcing its role as a critical infrastructure asset for renewable energy development.