Norway/United States – Equinor and bp have terminated the Offshore Wind Renewable Energy Certificate (OREC) Agreement for the Empire Wind 2 project, an offshore wind endeavor in the U.S. with a potential generative capacity of 1,260 MW.
The decision, made in collaboration with the New York State Energy Research and Development Authority (NYSERDA), reflects the dynamic landscape of the offshore wind industry and the need for strategic repositioning in the face of economic shifts.
The agreement acknowledges the impact of changed economic circumstances on an industry-wide scale, necessitating a reevaluation of the project’s trajectory. The mature Empire Wind 2 project will now be recalibrated to align with evolving market conditions, including challenges posed by inflation, fluctuating interest rates, and disruptions in the supply chain. These factors collectively rendered the existing OREC agreement economically unviable.
Equinor and bp’s commitment
Despite the shift in the project’s trajectory, both Equinor and bp remain committed to the potential of offshore wind as a crucial element in the energy mix. The companies believe in the capacity of offshore wind to deliver reliable renewable power while generating significant economic benefits for the state and local communities.
Empire Wind 1 and Empire Wind 2 projects achieved a notable federal permitting milestone, receiving the federal Record of Decision from the Bureau of Ocean Energy Management (BOEM). Additionally, Empire Wind 1 obtained its Article VII Certificate of Environmental Compatibility and Public Need in New York last month, signaling progress in the face of the evolving landscape.
