Equinor has secured $3 billion to finance New York’s Empire Wind 1 offshore wind farm, which will provide power for 500,000 homes when it comes online in 2027. It’s set to become the first offshore wind farm to connect directly to New York City’s grid.
Equinor’s January 2 announcement of the close at the end of December officially greenlights the 810-megawatt (MW) Empire Wind 1, significantly boosting New York’s offshore wind sector and the broader US offshore wind industry.
That’s despite President-elect Donald Trump saying he intends to scrap offshore wind with an executive order on “day one.” However, nothing tangible has yet to come out of that campaign talk, and Equinor and its lenders are clearly confident that Empire Wind 1 will be around a lot longer than Trump will.
Equinor writes, “Due to strong interest from lenders, the Empire Wind 1 project was able to secure competitive terms. The final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks.”
The Norwegian energy giant says the project’s expected total capital investments, including fees for using the South Brooklyn Marine Terminal, are approximately $5 billion, including the effect of expected future tax credits, so $3 billion makes up a good chunk of that total.
“[This] financial close maintains our momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen US energy security, build economic growth, and fuel a new American supply chain,” said Molly Morris, Equinor’s senior vice president for renewables in Americas.
Construction is already underway on Empire Wind 1, located 15-30 miles southeast of Long Island and covering 80,000 acres. The project is already creating job opportunities, with the redevelopment of the South Brooklyn Marine Terminal (pictured above) and construction of Empire Wind 1 creating more than 1,000 union jobs in the construction phase.
The South Brooklyn Marine Terminal will become the US’s largest dedicated port facility for offshore wind. It will serve as the operations and maintenance hub for Empire Wind 1 and will be the site of its onshore substation.
Read more: A major US offshore wind hub just broke ground in New York City
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