Equinor considers legal action on canned wind farm

Last Wednesday, the Bureau of Ocean Management (BOEM) ordered the company to halt all activities on the outer continental shelf despite a federal lease being signed to go ahead in 2017.

“Empire is engaging with relevant authorities to clarify this matter and is considering its legal remedies, including appealing the order,” the company said in response to the order.

“Empire Wind 1 has validly secured all necessary federal and state permits and is currently under construction,” it says. “The project is being developed under contract with New York State Energy Research and Development Authority (NYSERDA) to provide an important new source of electricity for the State of New York. The construction phase has put more than 1,500 people to work in the US. Empire wind 1 has the potential to power 500,000 New York homes.”

A loan facility totalling $1.5 billion has already been drawn for the project, and the company ‘is in the process of ascertaining the impact on the project and project financing’, it says.

“Equinor US holdings has provided guarantees for the equity commitment in the project financing,” it says. “In a full stop scenario, the $1.5 billion will be repaid from the equity commitment to the project finance lenders and Empire Offshore Wind LLC will be exposed to termination fees towards its suppliers.”

In 35 years, Equinor says it has invested more than $60 billion in the US on renewables, oil and gas projects.

According to the Oceantic Network, ‘the voice of America’s offshore wind supply chain’, 102 companies hold 112 contracts for Empire Wind, and the supply chain spans more than 23 states.

Empire Wind’s supply chain directly supports more than 3,500 US jobs, Oceantic says.