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Empire Offshore Wind will safely suspend offshore construction activities for the Empire Wind project, following a halt work order from the US government.
The Bureau of Ocean Energy Management (BOEM) issued the notice on 16 April, requiring all activities on the outer continental shelf to cease until a thorough review is completed.
Interior Secretary Doug Burgum, in consultation with Commerce Secretary Howard Lutnick, initiated the pause on Equinor's project.
A memo indicated that the project was "rushed" by the previous administration without adequate assessment of its effects, reported Bloomberg.
"This halt is to remain in effect until further review is completed to address these serious deficiencies," Burgum stated.
Equinor holds a 100% interest in Empire Offshore Wind through Equinor Wind US.
The company has responded to the situation, stating: "We will engage directly with BOEM and the Department of Interior to understand the questions raised about the permits we have received from authorities."
Equinor has refrained from speculating on potential consequences until more information is available.
Meanwhile, Empire Offshore Wind is in discussions with authorities to resolve the issue and is exploring legal options, including appealing the order.
The federal lease for Empire Wind was secured in 2017. Contracted by the New York State Energy Research and Development Authority (NYSERDA), the project aims to provide a significant new electricity source for New York State.
Empire Wind comprises two projects including Empire Wind 1 and Empire Wind 2. Empire Wind 1 obtained all necessary permits and is currently under construction. It has the capacity to power half a million homes in New York.
Over 1,500 workers have been employed in the US for the project’s construction phase.
Empire Offshore Wind is adhering to the order, with immediate actions taken to halt relevant marine operations, prioritising worker and environmental safety.
As of 31 March 2025, Empire Wind's gross book value stands at approximately $2.5bn, inclusive of the South Brooklyn Marine Terminal.
The project finance term loan facility had drawn around $1.5bn. The impact on the project and its financing is currently being evaluated, with Equinor US Holdings having provided guarantees for the equity commitment in the project financing.
In the event of a full suspension, the $1.5bn would be repaid from the equity commitment to the project finance lenders, and Empire Offshore Wind would face termination fees with its suppliers.