Equinor’s offshore wind development arm, Empire Offshore Wind LLC, has suspended marine construction on its Empire Wind project off Long Island, New York, following a halt work directive from the Bureau of Ocean Energy Management (BOEM). The order, issued under the Trump administration, requires all activity on the outer continental shelf to pause while the agency conducts a formal review.

Empire confirmed it received the BOEM notice last Wednesday. In response, the company said it “is engaging with relevant authorities to clarify this matter and is considering its legal remedies, including appealing the order.”

“Upon receipt of the order, immediate steps were taken by Empire and its contractors to initiate suspension of relevant marine activities, ensuring the safety of workers and the environment,” the company said. The project pause will be recorded as a subsequent event in Equinor’s Q1 2025 report.

Empire Wind 1, which began construction under a 2017 lease agreement with the U.S. government, has already secured all required federal and state permits. The wind farm is being developed in partnership with the New York State Energy Research and Development Authority (NYSERDA) and is projected to power up to 500,000 New York homes. Over 1,500 U.S. jobs have been generated during its construction.

The project's gross book value stands at approximately $2.5 billion, including infrastructure at the South Brooklyn Marine Terminal. As of March 31, about $1.5 billion had been drawn from the project’s financing term loan, according to Equinor.

The company is currently assessing how the BOEM directive will impact financing and execution. “In a full-stop scenario, the $1.5 billion will be repaid from the equity commitment to the project finance lenders and Empire Offshore Wind LLC will be exposed to termination fees towards its suppliers,” Equinor noted.

Equinor US Holdings Inc. has issued guarantees to support the equity commitments under the financing framework. Despite the halt, the company had recently reaffirmed its commitment to Empire Wind 1, announcing a final investment decision in January and expressing interest in securing a strategic partner to mitigate financial risk.

The Norwegian energy giant took full control of Empire Wind 1 and 2 earlier this year in a swap agreement with former co-developer BP plc.

Beyond its U.S. operations, Equinor continues to expand its renewables portfolio. Last month, the company purchased the 95-megawatt Lyngsåsa wind farm in Alvesta, Sweden, from SUSI Partners. The facility has been operational since 2021 and produces about 300 GWh annually, contributing roughly 10% of Equinor's renewable output for 2024.

Equinor stated the Lyngsåsa acquisition “will increase Equinor’s merchant exposure with immediate operational cashflows,” underscoring its continued focus on diversifying clean energy investments.

Originally reported by Rocky Teodoro in Rig Zone.