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Equinor ASA EQNR, the Norwegian energy giant, has secured a project financing package exceeding $3 billion for its U.S. offshore wind initiative, Empire Wind 1. The announcement marks a significant step in advancing Equinor and New York State's renewable energy ambitions.
Slated to become the first offshore wind project to connect to New York City’s grid, Empire Wind 1 is expected to supply clean energy to approximately 500,000 homes in the region. The project is anticipated to begin commercial operations in 2027.
With a contracted capacity of 810 megawatts (MW), Empire Wind 1 represents a significant leap in EQNR’s commitment to renewable energy and the U.S. offshore wind industry. The total capital investment in Empire Wind 1 is projected to reach $5 billion, factoring in costs for using the South Brooklyn Marine Terminal and the benefits of expected future investment tax credits. This substantial investment highlights Equinor’s focus on clean energy development, which is in line with global energy transition trends.
In mid-2024, Equinor finalized a Purchase and Sale Agreement with the New York State Energy Research and Development Authority for a 25-year power supply from Empire Wind 1. The strike price of $155.00 per megawatt-hour (MWh) reflects the evolving economics of the U.S. offshore wind market, supported by state-level incentives and long-term energy policy frameworks.
In a move consistent with the broader industry trend of optimizing renewable portfolios, Equinor plans to farm down a stake in Empire Wind 1 to a new partner. This approach allows EQNR to enhance value, manage risk and align its capital allocation with evolving market dynamics. The decision comes as international oil and gas majors, including Equinor, seek to balance investments in renewable energy with their traditional operations amid fluctuating market conditions.
Equinor’s financial backing for Empire Wind 1 reinforces its position as a leading player in the global energy transition. The project's ability to deliver clean energy to New York City while driving significant economic and environmental benefits highlights EQNR’s strategic commitment to renewable energy innovation. As the project progresses, the company’s strategy to farm down its stake could attract new partners, further bolstering its renewable portfolio.
EQNR’s Zacks Rank & Key Picks
EQNR currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, Sunoco LP SUN and Oceaneering International, Inc. OII. While TechnipFMC and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Oceaneering carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.