Equinor Secures Over USD 3 Billion Financing for Empire Wind 1 Project in U.S.

South Brooklyn Marine Terminal

(IN BRIEF) Equinor has secured over USD 3 billion in financing for its Empire Wind 1 offshore wind project in the U.S., with financial close reached in December 2024. The project, which will power 500,000 homes in New York by 2027, has a total capital investment estimated at USD 5 billion, including fees for the South Brooklyn Marine Terminal (SBMT) and expected tax credits. Equinor plans to bring in a new partner to reduce exposure and enhance value. Construction has already begun, and the project will create over 1,000 union jobs. Empire Wind 1 is located southeast of Long Island and will be the first offshore wind project connected to the New York City grid.

(PRESS RELEASE) STAVANGER, 03-Jan-2025 — /EuropaWire/ — Equinor ASA (OSE:EQNR, NYSE:EQNR), an oil, gas, wind and solar energy company active in more than 30 markets globally, announces that it has successfully closed a financing deal worth over USD 3 billion for its Empire Wind 1 offshore wind project in the United States. The financial close, finalized in December 2024, marks a significant step toward the realization of the project, which is set to power 500,000 homes in New York by 2027.

The total capital investment for Empire Wind 1, which includes fees for the use of the South Brooklyn Marine Terminal (SBMT), is estimated to reach approximately USD 5 billion. This figure incorporates expected future tax credits (ITCs), further strengthening the project’s financial foundation.

Equinor acquired the lease for Empire Wind in 2017, and in June 2024, the company executed a Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) to sell Empire Wind 1 power for 25 years at a strike price of USD 155.00 per megawatt-hour. This agreement is in line with the growing U.S. offshore wind industry, offering an ideal framework for investment and support.

The company plans to reduce its exposure in the Empire Wind 1 project by bringing in a new partner. Jens Økland, acting executive vice president for Renewables at Equinor, emphasized that this milestone is part of the company’s strategy to enhance value and further solidify the project’s long-term success. “As we move into full execution, our focus remains on increasing resilience and creating value,” Økland stated.

Molly Morris, senior vice president for Renewables in the Americas, highlighted that the financial close reinforces Equinor’s ongoing momentum. “Empire Wind 1 will play a crucial role in bolstering U.S. energy security, driving economic growth, and supporting the creation of a new American supply chain. Our redevelopment of the South Brooklyn Marine Terminal is already generating over 1,000 jobs,” said Morris.

Construction of the Empire Wind 1 project is already underway. The project, located 15-30 miles southeast of Long Island, spans 80,000 acres and boasts a contracted capacity of 810 MW. It will be the first offshore wind farm to connect directly to the New York City grid, with plans to create over 1,000 union jobs during the construction phase.

Due to strong interest from lenders, the Empire Wind 1 project has secured competitive terms for its debt financing. The final lending group includes some of the most experienced financial institutions in the offshore wind sector, alongside many of Equinor’s long-standing banking partners.

The Empire Wind project, developed in two phases, consists of Empire Wind 1, with a capacity of 810 MW, and Empire Wind 2, which could potentially reach over 1,200 MW. Notably, in 2020, bp acquired a 50% share of Equinor’s Empire Wind and Beacon Wind assets, in a deal valued at USD 1.1 billion. Following a 2024 cash-neutral swap, Equinor now holds full ownership of the Empire Wind lease and projects, while bp took full ownership of the Beacon Wind lease.

As part of its broader commitment to the U.S. offshore wind industry, Equinor continues to invest in infrastructure, with the SBMT redevelopment underway. Once completed, SBMT will become the largest dedicated port facility for offshore wind in the U.S. and will serve as the operations and maintenance hub for Empire Wind 1, as well as the location for the project’s onshore substation.

Media contact:

Sissel Rinde
Vice president Media relations
Corporate affairs
sisr@equinor.com
+47 412 60 584

SOURCE: Equinor ASA