Trump halts under-construction windfarm in new blow to US offshore wind

In a tweet, the Interior Secretary said that after consultation with Howard Lutnick (US Secretary of Commerce), the Department of Interior is directing the Bureau of Ocean Energy Management to immediately halt all construction activity on Empire Wind 1 project “until further review of information that suggests the Biden administration rushed through its approval without sufficient analysis.”

He continued, “On day one, President Trump called for comprehensive reviews of federal wind projects and wind leasing, and at Interior, we are doing our part to make sure these instructions are followed.”

Equinor executed a purchase and sale agreement with the New York State Energy Research and Development Authority or the power generated by Empire Wind 1 in mid-2024. The company secured a project financing package of more than US$3Bn for Empire Wind 1 in late 2024. The total capital investment in the project, including fees for the use of the South Brooklyn Marine Terminal (SBMT) are approximately US$5Bn.

With a contracted capacity of 810 MW, Empire Wind 1 would have been the first offshore wind project to connect into the New York City grid. The redevelopment of the SBMT and construction of Empire Wind 1 will create more than 1,000 union jobs in the construction phase. 

New York Governor Kathy Hochul said the decision was a clear example of Federal overreach. “Every single day, I’m working to make energy more affordable, reliable and abundant in New York. The federal government should be supporting those efforts rather than undermining them,” she said.

“Empire Wind 1 is already employing hundreds of New Yorkers, including 1,000 good-paying union jobs as part of a growing sector that has already spurred significant economic development and private investment throughout the state and beyond.

“This fully federally permitted project has already put shovels in the ground before the President’s executive orders. It is exactly the type of bipartisan energy solution we should be working on. As Governor, I will not allow this federal overreach to stand. I will fight this every step of the way to protect union jobs, affordable energy and New York’s economic future.” 

Responding to the Department of Interior’s order halting construction of the fully federally permitted project, Oceantic Network president and chief executive Liz Burdock said, “Stopping work on the fully federally permitted Empire Wind 1 offshore project should send chills across all industries investing in and holding contracts with the US government. 

“Preventing a permitted and financed energy project from moving forward sends a loud and clear message to all businesses - beyond those in the offshore wind industry - that their investment in the US is not safe. 

“We urge the Department of Interior to lift this order immediately to restore a predictable and equitable environment for the buildout of critical energy resources that help secure our energy future and independence."

The New York Offshore Wind Alliance (NYOWA) highlighted the fact that Empire Wind 1 “went through years of rigorous environmental review and has already invested hundreds of millions in New York’s economy.” It said the decision to halt construction of the project “is antithetical to the Trump administration’s goal of expanding energy production and will instead increase reliance on imported energy.” NYOWA said it will also halt job creation and economic development in New York while undermining grid reliability. “We need more domestic energy production, not less,” said NYOWA.

American Clean Power Association chief executive Jason Grumet said, “Halting construction of fully permitted energy projects is the opposite of an energy abundance agenda. With skyrocketing energy demand and increasing consumer prices, we need streamlined permitting for all domestic energy resources. Doubling back to reconsider permits after projects are under construction sends a chilling signal to all energy investment.

“These political reversals are bad policy, whether applied to pipelines or windfarms. We encourage the administration to quickly address perceived inadequacies in the prior permit approvals so that construction of this project can be completed and bring much needed power to the grid. At the end of the day, reliable energy systems depend on reliable political systems.”

The Climate Jobs New York coalition issued the following statement. “At a time when energy demand and utility bills are rising across New York, we need to build more energy, not less.

“Offshore wind and other clean energy projects are creating much-needed energy, while supporting high-quality union jobs and providing a boon to local economies. New York must stay the course to build diverse energy infrastructure and create the middle-class jobs our state needs.

“From offshore construction to port work to manufacturing, there are thousands of union jobs in the offshore wind sector across our state that are now in jeopardy if projects are stalled.”