Equinor Contemplates Abandoning Empire Wind 1 Project in Near Future if Stop-Work Order Remains Unlifted - Sources Allege
Headline: Equinor Mulls Abandoning Massive Offshore Wind Project Amid Government Delays
Subhead: If the US Department of the Interior's stop-work order isn't lifted soon, Equinor could cut its losses and ditch the Empire Wind 1 project, costing millions and delaying the project for a year.
Molly Morris, president of Equinor Renewables Americas, spilled the beans to Politico about the potential axing of the Empire Wind 1 project, which could happen "in the coming days" if the bloody stop-work order from the US government remains in place. The order threw a monkey wrench into the project soon after construction started offshore.
Morris warned that the standstill is costing the company a pretty penny—a whopping $50 million (around EUR 45 million) per week—and if things keep going downhill, the company might have to file a lawsuit. But she thinks that'd tie the project up in court for too long, and the work offshore needs to get moving again pronto.
Last month, Anders Opedal, Equinor's CEO and President, called the US government's order to halt construction on Empire Wind 1 "unlawful" and claimed that the company is considering its legal options while attempting to engage directly with the US administration to straighten out the mess.
AP reports that Morris fears the project might miss the summer construction window, setting the project back a year if it happens. And if no progress is made within days, Equinor will be forced to put the brakes on the project[1][3][5].
When the US Department of the Interior issued its order to halt construction on Empire Wind 1 in April, it sent shockwaves through the offshore wind industry, both in the US and globally. The project began seabed preparation work in March, marking the offshore construction start.
The move has sparked a furious backlash from the industry and New York state agencies, with Governor Kathy Hochul vowing to stand her ground. The 810 MW Empire Wind 1 is the first offshore wind farm that will connect to New York City's grid, serving as a catalyst for investment and development at the South Brooklyn Marine Terminal[1][3][5].
Read more about the controversy surrounding the Empire Wind 1 in our previous coverage:
'Chilling Signal to Investors in US Market' | Industry, NY State Agencies Furious After US Gov't Suspends Empire Wind 1 Mid-Construction
New York Governor: "I Will Not Allow This Federal Overreach to Stand"
Equinor Freezes Empire Wind 1 Construction, Considering Appealing US Gov't Order
US Interior Dept Orders Halt on Empire Wind 1 Construction
Sources:
- "Equinor Says US Order on Empire Wind Project Is 'Unlawful'"
- "AP Reports"
- "Business & Finance"
- "Wind Farm Update"
- "Authorities"
- If the US Department of the Interior's stop-work order isn't lifted soon, Equinor, a major player in the energy industry, might abandon the Empire Wind 1 project, incurring significant financial losses and delaying the project for a year.
- Molly Morris, president of Equinor Renewables Americas, stated that the standstill on the Empire Wind 1 project could lead to a lawsuit, but she fears this would further delay the project and hamper offshore work.
- Recently, Anders Opedal, Equinor's CEO and President, iterated that the US government's order to halt construction on Empire Wind 1 is unlawful and that the company is considering its legal options while attempting to engage directly with the US administration to resolve the issue.
- In a report by AP, Morris expressed concern that the project might miss the summer construction window, causing a year-long delay if it occurs, highlighting the potential impact of policy and legislation on renewable-energy investments and the broader market.
- The US Department of the Interior's order to halt construction on Empire Wind 1 has triggered outrage within the offshore wind industry and New York state agencies, with Governor Kathy Hochul vowing to resist this alleged federal overreach, stressing its significance for investment and development in the sector.
