The Empire Wind project, a cornerstone of New York’s offshore wind ambitions, has hit a significant snag. The Bureau of Ocean Energy Management (BOEM) has ordered a halt to all offshore construction activities, sending ripples through the energy sector and raising questions about the future of this high-profile venture. The pause, initiated by Interior Secretary Doug Burgum in consultation with Commerce Secretary Howard Lutnick, comes after a memo alleged that the project was “rushed” by the previous administration without adequate environmental assessment. This development is not just a setback for Equinor, the project’s sole stakeholder, but also for New York State, which has been eagerly anticipating the significant new electricity source.
Equinor, which holds a 100% interest in Empire Offshore Wind through Equinor Wind US, has responded with a commitment to engage directly with BOEM and the Department of Interior. The company’s statement, while measured, underscores the gravity of the situation. “We will engage directly with BOEM and the Department of Interior to understand the questions raised about the permits we have received from authorities,” Equinor said, refraining from speculating on potential consequences until more information is available. This cautious approach is prudent, given the high stakes involved.
The Empire Wind project, comprising Empire Wind 1 and Empire Wind 2, has been a beacon of progress in the offshore wind sector. Empire Wind 1, with all necessary permits secured, is currently under construction and has the capacity to power half a million homes in New York. The project has already employed over 1,500 workers in the US, contributing to local economic development. The halt order, therefore, is not just a technical glitch but a significant disruption to ongoing operations and future plans.
The financial implications are equally daunting. As of 31 March 2025, Empire Wind’s gross book value stands at approximately $2.5bn, inclusive of the South Brooklyn Marine Terminal. The project finance term loan facility had drawn around $1.5bn. In the event of a full suspension, this amount would be repaid from the equity commitment to the project finance lenders, and Empire Offshore Wind would face termination fees with its suppliers. Equinor announced in January this year that the Empire Wind project had secured a financing package of more than $3bn, highlighting the scale of investment at stake.
The halt order is a stark reminder of the regulatory hurdles that can derail even the most meticulously planned projects. It also underscores the need for thorough environmental assessments and stakeholder consultations. The pause could lead to a more robust regulatory framework, ensuring that future projects are not only economically viable but also environmentally sustainable. However, it also risks delaying the transition to renewable energy, a critical goal in the fight against climate change.
The Empire Wind project’s future hangs in the balance, and the coming weeks will be crucial. Equinor’s engagement with BOEM and the Department of Interior will be closely watched, as will the potential legal avenues the company explores. This development is a wake-up call for the energy sector, highlighting the need for a delicate balance between ambition and caution, progress and sustainability. The Empire Wind project’s journey is far from over, and its outcome will shape the trajectory of offshore wind development in the US. The sector is watching, and the stakes are high.
