Equinor has reached financial close on the 810MW Empire Wind 1 project in the US after securing a project financing package of over $3bn.
Due to strong interest from lenders, the wind farm was able to secure competitive terms with the final group of lenders including several of Equinor’s relationship banks, the Norwegian developer said.
Empire Wind 1 will be the first offshore wind project to connect into the New York City grid and is expected to reach commercial operation date in 2027.
The redevelopment of the South Brooklyn Marine Terminal and construction of Empire Wind 1 will create more than 1000 union jobs in the construction phase, the developer said.
The expected total capital investments, including fees for the use of the South Brooklyn Marine Terminal, are approximately $5bn including the effect of expected future tax credits.
“Today’s financial close maintains our momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen US energy security, build economic growth and fuel a new American supply chain,” said Molly Morris (pictured), Equinor’s senior vice president for renewables in Americas.
Equinor acquired the Empire Wind lease area in 2017.
In June 2024, Equinor announced the execution of the Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority for Empire Wind 1 power for 25 years at a strike price of $155/MWh.
The investment level and support framework are in line with the developing US offshore wind industry.
Equinor intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.
“This is an important milestone for Equinor, in line with our plan to enhance value and reduce exposure in the Empire Wind 1 project.
As we now enter full execution mode, we continue our efforts to increase robustness and value-creation in the project,” said Jens Okland, acting executive vice president for renewables at Equinor.