Equinor consolidates the Empire Wind 1 supply contract in New York

Equinor has announced the signing of a purchase and sale agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) for renewable energy generated by the Empire Wind 1 offshore wind project.

This deal comes after NYSERDA announced in February that Equinor had been selected as a conditional winner in the fourth New York offshore wind tender.

“We thank NYSERDA and the state of New York for their strong commitment to the offshore wind sector and to achieving the state’s broader renewable energy goals,” said Molly Morris, president of Equinor Renewables Americas.

“Empire Wind 1 is a make-or-break project for Equinor and the PSA agreement is an important milestone in reducing risk and ensuring a solid path forward as we work towards delivering first power.”

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Onshore construction work is underway at the South Brooklyn Marine Terminal. Empire Wind 1 will be the first US offshore wind project to connect directly to the New York grid, with the goal of supplying power for the first time by the end of 2026. At a market price of $155.00 per MW/ h, Empire Wind 1 is expected to deliver real future project profitability within the range expected for renewable energy projects. Following the final investment decision, Equinor plans to resort to financing the project, which is scheduled for financial closure by the end of 2024. Equinor intends to bring in a partner to reduce financial exposure.

The signing of the purchase agreement further consolidates the considerable progress made by the 810 MW Empire Wind 1 project to supply reliable, renewable energy to 500,000 New York homes. Empire Wind 1 will create more than 1,000 union jobs during the construction phase, help create a national supply chain and provide an economic boost to communities, while boosting the offshore wind industry in New York and on the East Coast .

A major feature of Empire Wind 1 is the transformation of the venerable South Brooklyn Marine Terminal (SBMT) in Sunset Park, Brooklyn. The SBMT will be rebuilt with unionized labor and will serve as the main assembly area for Empire Wind 1. In the future, the port will become a hub for future offshore wind projects as the sector grows throughout of the northeast coast in the coming decades.

Empire Wind 1 is a make-or-break project for Equinor and the PSA agreement is an important milestone in reducing risk and ensuring a strong path forward

Doreen M. Harris, President and CEO of the New York State Energy Research and Development Authority, said: “Major renewable energy infrastructure projects like Empire Wind 1 are a crucial component of meeting New York’s climate goals. York. “NYSERDA applauds Equinor for its continued commitment to investing in New York’s green economy, including the redevelopment of the South Brooklyn Marine Terminal, and for helping to put New York’s offshore wind industry on its feet, one major milestone at a time.”

As part of this agreement, the project will provide a number of economic benefits that will support economic development in New York City and across the state, including increased funding for workforce and community development, with significant local investments already made in the Offshore Wind Learning Centre, the Offshore Wind Innovation Center and the Offshore Wind Ecosystem Fund. Additionally, Empire Wind 1 is strongly committed to supporting minority-, women-owned (MWBE) and disabled veteran-owned businesses (SDVOB), primarily focusing on the onshore development of the South Brooklyn Marine Terminal.