Equinor Finalizes New York Offtake Contract for Empire Wind 1

Equinor, the leading energy company, has executed a Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) for the renewable energy produced by the Empire Wind 1 offshore wind project. This agreement is a significant step following NYSERDA’s announcement in February that selected Equinor as a conditional winner in New York’s fourth offshore wind solicitation.

Empire Wind 1 Visualization

Molly Morris, President of Equinor Renewables Americas, expressed gratitude towards NYSERDA and New York State for their dedication to advancing the offshore wind industry and meeting renewable energy goals. She emphasized that the PSA is a critical milestone for the Empire Wind 1 project, ensuring a secure path towards delivering its first power by late 2026.

Empire Wind 1, located 15-30 miles southeast of Long Island, will be the first offshore wind project in the U.S. to connect directly to the New York City grid. With an 810 MW capacity, it aims to power 500,000 New York homes. Onshore construction at the South Brooklyn Marine Terminal is already in progress, which will be the primary staging area for the project. This redevelopment will be carried out using union labor, creating over 1,000 union jobs and boosting the local economy.

The project, priced at $155.00 per MW/h, is expected to deliver returns within the forecasted range for renewable projects. Financial close is anticipated by the end of 2024, with Equinor planning to use project financing and bring in a partner to mitigate financial risk.

Empire Wind 1 will also contribute significantly to economic development in New York City and the state, with commitments to workforce and community development, including investments in the Offshore Wind Learning Center, Offshore Wind Innovation Hub, and Offshore Wind Ecosystem Fund. The project will prioritize businesses owned by minorities, women, and service-disabled veterans, particularly in the onshore development at the South Brooklyn Marine Terminal.

NYSERDA President and CEO Doreen M. Harris highlighted the importance of Empire Wind 1 in achieving New York’s climate goals and praised Equinor for its investment in the state’s green economy.

Equinor, with over 20 years of offshore wind experience and a substantial portfolio in the UK, Poland, Germany, and South Korea, acquired the lease for the 80,000-acre Empire Wind project in 2017. The project’s two phases, Empire Wind 1 and 2, will have a combined capacity of over 2 GW, sufficient to power more than 1 million New York homes.