Equinor and bp are terminating their offshore wind REC settlement for the deliberate 1.26 GW Empire Wind 2 mission off the shores of Lengthy Island, citing “modified financial circumstances on an industry-wide scale.”
The builders’ settlement with the New York State Vitality Analysis and Improvement Authority (NYSERDA) “repositions an already mature mission to proceed improvement in anticipation of recent offtake alternatives,” mentioned Equinor and bp, that are 50-50 companions within the Empire 1 and a pair of tasks.
“The choice acknowledges business situations pushed by inflation, rates of interest and provide chain disruptions that prevented Empire Wind 2’s present OREC settlement from being viable,” the businesses famous.
“Business viability is key for formidable tasks of this measurement and scale,” mentioned Molly Morris, president of Equinor Renewables Americas. “The Empire Wind 2 resolution supplies the chance to reset and develop a stronger and extra sturdy mission going ahead.
“We are going to proceed to carefully have interaction our many neighborhood companions throughout the state,” she added. “As evidenced by the progress on the South Brooklyn Marine Terminal, our offshore wind exercise is able to generate union jobs and important financial exercise in New York.”
Each the Empire Wind 1 and Empire Wind 2 tasks just lately reached a key federal allowing milestone, having obtained the federal document of resolution from BOEM. Final month, Empire Wind 1 additionally obtained its Article VII Certificates of Environmental Compatibility and Public Want in New York.
