Clean Energy
Trump Reverses Shutdown of $5B NY Empire Wind Construction
Shutdown of Empire Wind project, including work on its Brooklyn, N.Y., onshore staging site seen here, has been costing about $50 million per week, developer Equinor said.
Photo courtesy of Equinor
The Trump administration has lifted an April 16 stop-work order for ongoing construction of the estimated $5-billion Empire Wind offshore wind project off New York, according to a May 20 announcement by its Norwegian developer, Equinor ASA.
“Construction can now resume …which underscores our commitment to deliver energy while supporting local economies and creating jobs,” firm CEO Anders Opedal said. With the project fully permitted and work 30% complete, he had previously described the shutdown—which the government claimed was needed because of rushed environmental review in the Biden administration—as “unlawful” and "unprecedented" and had weighed a lawsuit against the current administration.
Equinor Americas President Molly Morris had said the shutdown nearly prompted the firm to cancel the project, which already had about 1,500 construction workers on site. Another 1,000 would have been added for offshore construction, with all project work set to finish by 2027.
The shutdown prompted strong pushback from building trades, government leaders, regional politicians and even top officials in Norway.
New York had set in 2019 an ambitious target for 70% clean power generation by 2030 and 9 GW of offshore wind by 2035. One commercial-scale state project now is operating—the 132-MW South Fork—with another set to be built, the 920-MW Sunrise project being developed by Orsted. But projects that were set to generate at least 8.5 GW of offshore wind power capacity have been cancelled since then, due to major cost impacts on project economics.
The U.S. Interior Dept. did not post details of the Empire Wind shutdown reversal on its website, but Interior Secretary Doug Burgum said on social media it is linked an apparent agreement with New York. Gov. Kathy Hochul (D) that could result in work resuming on one regional gas pipeline she halted in 2020, with other projects eyed.
Pipeline builder Williams Cos. dropped its plan in 2020 for the $1-billion expanded Transco gas pipeline from Pennsylvania to the NY-NJ region after battles with both states' officials, while other developer proposals have not progressed amid opposition and court battles.
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According to Newsday, Hochul and President Donald Trump had been in phone conversations since the shutdown, "and in a series of late-night weekend calls, Trump was persuaded to change his mind to save union jobs."
In a statement, Hochul thanked Trump for his willingness "to save the ... 1,500 union jobs that were on the line." Related to potential gas projects, she did not confirm any new project but "reaffirmed that New York will work with the Administration and private entities on new energy projects that meet the legal requirements under New York law."
Burgum said he was "encouraged by Governor Hochul’s comments about her willingness to move forward on critical pipeline capacity."
Skanska is lead contractor for the 810-MW wind project’s Brooklyn, N.Y., onshore staging site, with offshore work to install foundations for 54 turbines set to begin this summer and ocean floor placement of rock scour resuming, said a project spokesman. "We started rock laying in April," he said.
Equinor, which said it has spent about $2.5 billion on the project so far, will offer an update on the financial impacts of the shutdown in its second-quarter results conference call on July 23.
An Equinor spokesman said the shutdown was costing the developer about $50 million per week.
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