Equinor Secures USD 3 Billion for New York City’s First Offshore Wind Farm

Equinor has secured a project financing package of over USD 3 billion (approximately EUR 2.9 billion) and reached financial close on Empire Wind 1, the first offshore wind farm to connect to New York City’s grid, which is already under construction after Equinor made a final investment decision (FID) on the project earlier this year.

The expected total capital investments, including fees for using the South Brooklyn Marine Terminal (SBMT), are approximately USD 5 billion (approx. EUR 5 billion) including the effect of expected future tax credits (ITCs), the company said on 2 January. Equinor also reiterated the company’s plans to farm down in Empire Wind 1 to a new partner.

On the debt financing of the project, Equinor says it was able to secure competitive terms due to strong interest from lenders, which include 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 and entered a power purchase agreement with the New York State Energy Research and Development Authority (NYSERDA) for Empire Wind 1 in June 2024, under which the project, once operational in 2027, will power around 500,000 New York homes for 25 years at a strike price of USD 155.00/MWh (EUR 150.71/MWh).

The 810 MW offshore wind farm was previously owned by Equinor and BP but in January 2024, the companies reached an agreement to restructure the ownership of their joint venture offshore wind projects in the US, with Equinor taking full control of Empire Wind 1 and 2, and BP assuming full ownership of the 2.5 GW Beacon Wind project.

Empire Wind 1, located 25-48 kilometres (15-30 miles) southeast of Long Island, will comprise 54 Vestas 15 MW wind turbines and is expected to produce first power in late 2026, with full commissioning in 2027.

The South Brooklyn Marine Terminal (SBMT) in Sunset Park, which is being transformed into a dedicated port facility for offshore wind, will provide the infrastructure to deploy the V236-15.0 MW wind turbines, including the staging and pre-assembly activities such as load-in, load-out, and transportation of wind turbine components, tools, and containers before progressing towards offshore wind turbine installation and commissioning.