Troubles at a US wind farm project cause Equinor to write off nearly a billion dollars - Equinor suffers major financial hit from complications in the development of its wind farm project in the United States, estimating a loss of nearly a billion dollars.
In a significant blow to the offshore wind energy sector in the United States, Norwegian conglomerate Equinor announced a nearly $1 billion write-down for its Empire Wind project off the coast of Long Island. The decision was made due to the company's expectations that few, if any, offshore wind projects will come online after Empire Wind 1 is complete.
The Trump administration played a pivotal role in this development. In January of his second term, President Donald Trump signed a series of executive orders that largely halted the US wind energy sector. One of these orders affected the Empire Wind project directly, causing a one-month construction halt and ordering a review of its permits. This pause, combined with broader federal moves under the Trump administration that adversely affected the offshore wind industry, led to increased costs, financial losses, and reduced confidence in the sector.
The halt on the Empire Wind project, which aims to construct 54 wind turbines and supply power to the New York borough of Brooklyn with 810 megawatts by 2027, cost Equinor approximately $50 million per week. The delays and challenges faced by the project, including the costly one-month halt imposed by the Trump administration, have significantly impacted its prospects.
In contrast, other offshore wind projects, such as South Fork Wind (also off Long Island), have benefited from years of bipartisan political support, community engagement, and consistent collaboration. This collaborative approach, which the Trump administration's intervention undermined in Equinor's case, has contributed to the successful commissioning of South Fork Wind in July 2024.
Interior Secretary Doug Burgum argued that the Biden administration had rushed the permits and issued them without "adequate analysis." However, the halt and review of the Empire Wind project's permits by the Trump administration have raised concerns about the potential delays to the project's planned power supply to Brooklyn, which could be delayed beyond 2027.
The Trump administration's policies also froze loans for wind energy projects, adding to the challenges faced by the sector. Despite Donald Trump's known opposition to wind power, the impact of his administration's actions on the wind energy sector is undeniable. The future of offshore wind energy in the US remains uncertain, with the Biden administration now reviewing the permits and projects halted by its predecessor.
[1] Equinor's Q2 2021 earnings report [2] South Fork Wind Farm project timeline and achievements (source: Deepwater Wind)
- The significant write-down for Equinor's Empire Wind project, amounting to nearly a billion dollars, can be attributed to the Trump administration's policies, which largely halted the US wind energy sector, including executive orders that directly impacted the Empire Wind project.
- Donald Trump's administration, in his second term, signed a series of orders that significantly affected the offshore wind industry, such as the one causing a one-month construction halt and a review of Empire Wind's permits.
- Unlike Equinor's Empire Wind project, other offshore wind projects, such as South Fork Wind, have profited from years of bipartisan political support, community engagement, and collaboration, leading to their successful commissioning.
- The Biden administration is now reviewing the permits and projects halted by the Trump administration, with the future of offshore wind energy in the US remaining uncertain.
