Equinor and BP have announced an agreement with the New York State Energy Research and Development Authority (NYSERDA) to terminate the Offshore Wind Renewable Energy Certificate (OREC) Agreement for the 1.2GW Empire Wind 2 project.
The agreement reflects changed economic circumstances on an industry-wide scale and repositions an already mature project to continue development in anticipation of new offtake opportunities, said Equinor.
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 developer added.
Equinor and BP said they still believe offshore wind can be an important part of the energy mix and are committed to maintaining substantial contributions to the state and local economy.
“Commercial viability is fundamental for ambitious projects of this size and scale. The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward,” said president of Equinor Renewables Americas Molly Morris.
“We will continue to closely engage our many community partners across the state. 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.”
BP’s president of offshore wind Americas Joshua Weinstein added: “BP is supportive of NYSERDA’s leadership and commitment to offshore wind, which we believe is a critical part of New York State’s and America’s clean energy future.
“Offshore wind can deliver reliable renewable power as well as economic benefits to the state and its communities.”
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.