Equinor secures $3 billion for NY wind farm
Norwegian energy giant Equinor has secured $3 billion financing for the next stage of its Empire Wind project around 30 miles southeast of Long Island, New York.
Having bought the lease area for Empire Wind in 2017, Equinor agreed a deal with the New York State Energy Research and Development Authority (NYSERDA) to operate the site for 25 years at $155/MWh.
As well as fees to use the South Brooklyn Marine Terminal, total capital needed for the project will amount to $5 billion, which includes future tax credits.
Construction has begun on Empire Wind 1 and it is due to come online in 2027, powering 500,000 New York households.
“This is an important milestone for Equinor, in line with our plan to enhance value and reduce exposure in the Empire Wind 1 project. As we now enter full execution mode, we continue our efforts to increase robustness and value-creation in the project,” said Jens Økland, acting executive vice president for Renewables in Equinor, which in December bought a 10% stake in Danish renewable energy company Ørsted.
Equinor has redeveloped South Brooklyn Marine Terminal to accommodate the new wind farm, opening up 1,000 jobs, said Molly Morris, senior vice president for Renewables in Americas for Equinor. It is planned to be the US’s largest dedicated port for offshore wind.
Empire Wind 1 spans 80,000 acres and has a contracted generation capacity of 810MW. A second phase, Empire Wind 2, could potentially generate 1,200MW.
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