Equinor secures financing package for Empire Wind 1 offshore windfarm

Financial close was reached at the end of December 2024. Empire Wind 1 will power 500,000 New York homes and is expected to reach its commercial operation date in 2027.

The expected total capital investment, including fees for the use of the South Brooklyn Marine Terminal, are approximately US$5Bn, including the effect of expected future tax credits (ITCs).

Equinor said that, due to strong interest from lenders, the Empire Wind 1 project was able to secure competitive terms. The final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks.

Equinor acquired the Empire Wind lease area in 2017. In June 2024, the company announced the execution of a 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 company said the investment level and support framework are in line with the developing US offshore wind industry. Equinor intends to farm down the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.

Equinor acting vice president renewables Jens Økland said, “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.”

Equinor senior vice president for renewables Americas, Molly Morris said, “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.

“Our redevelopment of the South Brooklyn Marine Terminal is already putting more than 1,000 people to work. Equinor is proud to play a part in advancing domestic energy solutions safely, efficiently and for the long-term.”

Equinor made a final investment decision on the wholly owned and operated Empire Wind 1 project earlier this year. Construction has already begun.

Empire Wind 1 is located 24-48 km 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.