Equinor suspends construction of Empire Wind 1, considers legal challenge

“In accordance with a halt work order issued by the US government, Empire Offshore Wind LLC will safely halt the offshore construction in waters of the outer continental shelf for the Empire Wind project,” the company said in a 17 April 2025 statement.

“On 16 April 2025, Empire received notice from the Bureau of Ocean Energy Management (BOEM) ordering it to halt all activities on the outer continental shelf until BOEM has completed its review.

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

“Upon receipt of the order, immediate steps were taken by Empire and its contractors to initiate suspension of relevant marine activities, ensuring the safety of workers and the environment.”

The company highlighted the federal lease for Empire Wind was signed with the US Administration in 2017 and Empire Wind 1 has validly secured all necessary federal and state permits and is currently under construction. 

The project is being developed under contract with the New York State Energy Research and Development Authority 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.

As of 31 March 2025, Empire Wind had gross book value of around US$2.5Bn, including South Brooklyn Marine Terminal. The total amount drawn under the project finance term loan facility per 31 March 2025 was around US$1.5Bn. 

Empire said it is in the process of ascertaining the impact of the Department of Interior’s decision on the project and project financing.

Equinor US Holdings Inc provided guarantees for the equity commitment in the project financing. In a full stop scenario, the US$1.5Bn 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.