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Released May 02, 2025 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Equinor (NYSE:EQNR) (Stavanger, Norway) is seeking a dialogue with the Trump administration and perhaps stronger actions in regard to the administration's cancellation of construction of the Empire offshore windfarm off the Long Island coast.
The order to stop construction, which came last month, was issued by Interior Secretary Doug Burgum under instructions from the Bureau of Ocean Energy Management (BOEM), calling for work on the project to stop "until further review of information that suggests the Biden administration rushed through its approval without sufficient analysis." The project was employing an estimated 1,500 people for both the construction of the turbines and development of the marine terminal where the windfarm's central operations would be. The news sent shockwaves through players in the U.S. offshore wind sector, many of whom assumed that previously permitted projects--not to mention those already under construction--were safe from U.S. President Donald Trump's war against offshore wind.
But perhaps complacency regarding permitted projects was careless. Trump made apparent his antipathy for offshore windfarms on his first day in office by signing an executive order placing a moratorium on new and renewed leases of the U.S. Outer Continental Shelf for wind power and stating that the heads of various agencies "shall not issue new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects pending the completion of a comprehensive assessment and review of Federal wind leasing and permitting practices."
The January 20 order also challenged the Department of the Interior's final environmental impact statement for the 1,000-megawatt (MW) Lava Ridge onshore wind project in Idaho, putting developer Magic Valley Energy LLC's plans on ice. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
While the Lava Ridge Windfarm hadn't begun construction when the executive order calling it out was issued, that was not the case with Empire offshore windfarm, which Equinor says is about 30% complete. The windfarm was approved under the Biden administration in 2023, and construction on the project began last year. The project was to have included 54 turbines, each rated at 15 MW, to provide aggregate generation of about 810 MW, or enough to power about 500,000 homes in the region. The project was planned to be completed in 2027. Subscribers can click here to learn more about the project.
This week, Equinor Chief Executive Officer Anders Opedal discussed the company's outlook and plans for the project. In a press release regarding the company's recently reported first-quarter earnings, Opedal said, "We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful. This is a question of the rights and obligations granted under legally issued permits, and security of investments based on valid approvals. We seek to engage directly with the US administration to clarify the matter and are considering our legal options." Equinor won the lease for the windfarm in 2017, under Trump's first administration.
The earnings press release stated Empire Wind had a book value of $2.5 billion, including development of the marine terminal control center. In addition to the construction workers onsite, the project was to have created about 50 permanent jobs for its daily operations. Opedal said the company could book an impairment charge over the administration's decision in the second quarter. In addition, the company faces $1.5 billion to $2 billion in guarantees and termination fees.
Equninor is majority owned by the Norwegian government.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
The order to stop construction, which came last month, was issued by Interior Secretary Doug Burgum under instructions from the Bureau of Ocean Energy Management (BOEM), calling for work on the project to stop "until further review of information that suggests the Biden administration rushed through its approval without sufficient analysis." The project was employing an estimated 1,500 people for both the construction of the turbines and development of the marine terminal where the windfarm's central operations would be. The news sent shockwaves through players in the U.S. offshore wind sector, many of whom assumed that previously permitted projects--not to mention those already under construction--were safe from U.S. President Donald Trump's war against offshore wind.
But perhaps complacency regarding permitted projects was careless. Trump made apparent his antipathy for offshore windfarms on his first day in office by signing an executive order placing a moratorium on new and renewed leases of the U.S. Outer Continental Shelf for wind power and stating that the heads of various agencies "shall not issue new or renewed approvals, rights of way, permits, leases, or loans for onshore or offshore wind projects pending the completion of a comprehensive assessment and review of Federal wind leasing and permitting practices."
The January 20 order also challenged the Department of the Interior's final environmental impact statement for the 1,000-megawatt (MW) Lava Ridge onshore wind project in Idaho, putting developer Magic Valley Energy LLC's plans on ice. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
While the Lava Ridge Windfarm hadn't begun construction when the executive order calling it out was issued, that was not the case with Empire offshore windfarm, which Equinor says is about 30% complete. The windfarm was approved under the Biden administration in 2023, and construction on the project began last year. The project was to have included 54 turbines, each rated at 15 MW, to provide aggregate generation of about 810 MW, or enough to power about 500,000 homes in the region. The project was planned to be completed in 2027. Subscribers can click here to learn more about the project.
This week, Equinor Chief Executive Officer Anders Opedal discussed the company's outlook and plans for the project. In a press release regarding the company's recently reported first-quarter earnings, Opedal said, "We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful. This is a question of the rights and obligations granted under legally issued permits, and security of investments based on valid approvals. We seek to engage directly with the US administration to clarify the matter and are considering our legal options." Equinor won the lease for the windfarm in 2017, under Trump's first administration.
The earnings press release stated Empire Wind had a book value of $2.5 billion, including development of the marine terminal control center. In addition to the construction workers onsite, the project was to have created about 50 permanent jobs for its daily operations. Opedal said the company could book an impairment charge over the administration's decision in the second quarter. In addition, the company faces $1.5 billion to $2 billion in guarantees and termination fees.
Equninor is majority owned by the Norwegian government.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
