Equinor and bp are terminating their offshore wind REC agreement for the planned 1.26 GW Empire Wind 2 project off the shores of Long Island, citing “changed economic circumstances on an industry-wide scale.”
The developers’ agreement with the New York State Energy Research and Development Authority (NYSERDA) “repositions an already mature project to continue development in anticipation of new offtake opportunities,” said Equinor and bp, which are 50-50 partners in the Empire 1 and 2 projects.
“The decision recognizes commercial conditions driven by inflation, interest rates and supply chain disruptions that prevented Empire Wind 2’s existing OREC agreement from being viable,” the companies noted.
“Commercial viability is fundamental for ambitious projects of this size and scale,” said Molly Morris, president of Equinor Renewables Americas. “The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward.
“We will continue to closely engage our many community partners across the state,” she added. “As evidenced by the progress at the South Brooklyn Marine Terminal, our offshore wind activity is ready to generate union jobs and significant economic activity in New York.”
Both the Empire Wind 1 and Empire Wind 2 projects recently reached a key federal permitting milestone, having received the federal record of decision from BOEM. Last month, Empire Wind 1 also received its Article VII Certificate of Environmental Compatibility and Public Need in New York.
