3 days Ago By Mike Schuler
U.S. Interior Secretary Doug Burgum has ordered an immediate halt to construction on Equinor’s Empire Wind project off the coast of New York, marking a significant development for the U.
S. offshore wind industry. Interior Secretary Burgum cited concerns about the previous administration’s approval process, stating on X that the halt would remain in effect “until further review of information that suggests the Biden administration rushed through its approval without sufficient analysis.
” The decision comes following President Donald Trump’s day-one executive order mandating an immediate halt to all offshore wind development on the U.S. Outer Continental Shelf.
While the order doesn’t affect existing lease rights, it requires a thorough review of current wind energy leases for potential termination or amendment. ““As Governor, I will not allow this federal overreach to stand,” said New York State Governor Kathy Hochul. “I will fight this every step of the way to protect union jobs, affordable energy and New York’s economic future.
” The Empire Wind 1 project, which secured over $3 billion in project financing in December 2024, was poised to become the first offshore wind project to connect into the New York City grid. With a contracted capacity of 810 megawatts, the project is designed to power 500,000 New York homes upon its planned completion in 2027. Combined with the redevelopment of the South Brooklyn Marine Terminal, which is being transformed into the nation’s largest dedicated port facility for offshore wind, the project is expected to create more than 1,000 union jobs during the construction phase.
The terminal was designated to serve as both the operations and maintenance hub for Empire Wind 1 and the site of the project’s onshore substation. The total capital investment for Empire Wind 1, including fees for the South Brooklyn Marine Terminal (SBMT), was estimated at approximately $5 billion, factoring in expected future tax credits. The project’s development history dates back to 2017 when Equinor first acquired the lease area.
In June 2024, the company had secured a 25-year Purchase and Sale Agreement with the New York State Energy Research and Development Authority at a strike price of $155.00/MWh. The move from the Trump Administration represents a significant departure from the Biden administration’s ambitious offshore wind initiatives, which had targeted 30 gigawatts of offshore wind capacity by 2030 and 15 gigawatts of floating offshore wind by 2035.
In total, the Biden Administration completed 11 commercial-scale offshore wind project approvals and six offshore lease auctions, including pioneering sales in the Pacific, Gulf of Mexico, and Gulf of Maine regions, as well as a record-breaking lease sale in the New York Bight area that generated more than $4.3 billion..
