Equinor has warned of significant financial losses following the suspension of its Empire Wind offshore wind project off the coast of New York. The U.S. Department of the Interior, under the Biden administration, halted the project on April 16, citing a lack of sufficient environmental analysis prior to its approval.

At the time of the suspension, the 810MW Empire Wind project was approximately 30% complete. Equinor reported that its investment in the project has a book value of $2.5 billion, with additional exposure, including guarantees and termination fees, ranging from $1.5 billion to $2.0 billion.

The company has stated that it will meet with U.S. government officials to seek a reversal of the suspension, which it considers an unlawful order. Equinor is also evaluating its legal options in light of the decision.

The project, which was expected to power 500,000 homes annually by 2027, was fully permitted before work began. The suspension has raised concerns about the stability of future offshore wind developments in the U.S., particularly those with existing permits.

Equinor, a leading developer of offshore wind energy, won the lease for the site during the Trump administration in 2017. The company also reported stronger-than-expected earnings in its Q1 results, driven by higher European gas prices.

Source: reuters.com