The US three way partnership between BP and Equinor has agreed with the New York State Power Analysis and Growth Authority (NYSERDA) to terminate the Offshore Wind Renewable Power Certificates (OREC) settlement for the 1,260 MW Empire Wind 2 offshore wind venture that lately obtained federal approval.
The transfer comes after the three way partnership, and two different offshore wind builders, tried renegotiating their OREC contracts final yr to deal with latest inflationary pressures which are impacting venture economics. In October 2023, the New York State Public Service Fee (PSC) denied petitions filed by the offshore wind builders looking for monetary aid.
A few months earlier than the New York PSC’s determination, BP and Equinor mentioned they didn’t plan on growing their joint initiatives off New York except they met the ”return thresholds of 6% to eight%”.
In a press launch saying the termination of the settlement with NYSERDA, in addition to inflation and elevated rates of interest, Equinor cites provide chain disruptions as one of many challenges that prevented Empire Wind 2’s current OREC settlement from being viable.
The corporate additionally says the termination settlement repositions the venture to “proceed improvement in anticipation of recent offtake alternatives”.
“Business viability is key for formidable initiatives of this measurement and scale. The Empire Wind 2 determination offers the chance to reset and develop a stronger and extra strong venture going ahead,” mentioned Molly Morris, president of Equinor Renewables Americas. “We’ll proceed to intently interact our many neighborhood companions throughout the state. As evidenced by the progress on the South Brooklyn Marine Terminal, our offshore wind exercise is able to generate union jobs and vital financial exercise in New York.”
The three way partnership between BP and Equinor is growing two initiatives at its Empire Wind lease website, the 816 MW Empire Wind 1 and the 1,260 MW Empire Wind 2, which lately obtained the federal go-ahead from the Bureau of Ocean Power Administration (BOEM).
In December 2023, Empire Wind 1 additionally obtained its Article VII Certificates of Environmental Compatibility and Public Want in New York.
The Empire Wind Part 1 wind farm was chosen in New York’s first-ever offshore wind solicitation in 2019 alongside Ørsted and Eversource Power’s Dawn Wind venture. The Empire Wind 2 was chosen within the state’s offshore wind energy solicitation in January 2021 along with their Beacon Wind 1 venture south of Nantucket.
The offshore wind farms are deliberate to utilise Vestas V236-15.0 MW wind generators.
ADVERTISE ON OFFSHOREWIND.BIZ
Get in entrance of your audience in a single transfer! OffshoreWIND.biz is learn by hundreds of offshore wind professionals every day.
Observe offshoreWIND.biz on:
