Equinor and BP have terminated an agreement with the New York State Energy Research and Development Authority (NYSERDA) to build the Empire Wind 2 project, a significant offshore wind initiative boasting a potential generative capacity of 1,260 MW.
The decision, attributed to transformed economic circumstances within the industry, seeks to reposition the mature Empire Wind 2 project for continued development, aligning it with evolving economic conditions and anticipating new offtake opportunities. The move acknowledges challenges arising from industry-wide factors such as inflation, interest rates, and supply chain disruptions that rendered the existing OREC agreement for Empire Wind 2 unviable.
Equinor and BP underscore their commitment to offshore wind as a vital component of the energy mix and affirm their dedication to making substantial contributions to the state and local economy.
Molly Morris, President of Equinor Renewables Americas, emphasized the importance of commercial viability for ambitious projects of this magnitude.
“The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward,” Morris said. “We will continue to closely engage our many community partners across the state. As evidenced by the progress at the South Brooklyn Marine Terminal, our offshore wind activity is ready to generate union jobs and significant economic activity in New York.”
Joshua Weinstein, bp’s President of Offshore Wind Americas, expressed support for NYSERDA's leadership and commitment to offshore wind, describing it as a critical aspect of New York State's and America's clean energy future.
“Offshore wind can deliver reliable renewable power as well as economic benefits to the state and its communities,” he added.
Empire Wind 1 and Empire Wind 2 recently achieved a crucial federal permitting milestone, receiving the federal Record of Decision from BOEM. Last month, Empire Wind 1 also obtained its Article VII Certificate of Environmental Compatibility and Public Need in New York.
Empire Wind, a 50-50 joint venture between Equinor and BP, is located 15-30 miles southeast of Long Island, spanning 80,000 acres with water depths ranging from approximately 75 to 135 feet. The lease for the project was secured in 2017. The potential combined capacity of the project's two phases, Empire Wind 1 and 2, exceeds 2 GW (816 + 1,260 MW). Further details can be found at www.empirewind.com.
"New York is proud to continue leading the way in offshore wind development while establishing a blueprint for building a locally-based green economy," New York State Governor Kathy Hochul said in 2022.
New York State has about 4,300 megawatts in its portfolio, which currently consists of five offshore wind projects. The NYS Climate Act mandates that 70% of the state’s electricity should come from renewable energy by 2030 and at least 9,000 megawatts of offshore wind by 2035. The existing New York State portfolio of projects includes Sunrise Wind (924 megawatts), Empire Wind 1 (816 megawatts), Empire Wind 2 (1,260 megawatts) and Beacon Wind (1,230 megawatts).