Equinor’s Empire Wind 1 project in the US has now secured a project financing package of over US$ 3 billion. Financial close was reached at the end of December 2024. The project is expected to reach its commercial operation date in 2027.
The expected total capital investments, including fees for the use of the South Brooklyn Marine Terminal (SBMT), are approximately US$ 5 billion including the effect of expected future tax credits (ITCs).
Equinor acquired the Empire Wind lease area in 2017. In June 2024, it announced the execution of the Purchase and Sale Agreement with the New York State Energy Research and Development Authority, for Empire Wind 1 power for 25 years at a strike price of US$ 155.00/MWh. The investment level and support framework are in line with the developing US offshore wind industry. Equinor intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.
“Today’s financial close maintains our momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen US energy security, build economic growth and fuel a new American supply chain,” said Molly Morris, senior VP for Renewables in Americas.
Equinor made a final investment decision on its wholly owned and operated project earlier this year. Construction has already begun. The site is located 15-30 miles southeast of Long Island and spans 80 000 acres. With a contracted capacity of 810 MW, Empire Wind 1 will be the first offshore wind project to connect into the New York City grid.
Owing to strong interest from lenders, the Empire Wind 1 project was able to secure competitive terms to achieve financial close. The final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks.
