Equinor on June 4 introduced its has finalized an settlement with New York State Power Analysis and Growth Authority (NYSERDA) for the renewable energy generated by the 810-MW Empire Wind 1 offshore wind venture.
The deal comes after NYSERDA in February introduced that Equinor had been chosen as a conditional winner in New York’s fourth offshore wind solicitation. New York officers final month gave Equinor approval to start development of the venture, and onshore development exercise for the venture is ongoing on the South Brooklyn Marine Terminal.
“We thank NYSERDA and the state of New York for his or her steadfast dedication to the offshore wind trade and to reaching the state’s broader renewable vitality targets,” mentioned Molly Morris, president of Equinor Renewables Americas. “Empire Wind 1 is a defining venture for Equinor and the PSA settlement is a crucial milestone in de-risking and making certain a sturdy path ahead as we work towards delivering first energy.”
Empire Wind 1 might be America’s first offshore wind venture to plug immediately into the New York Metropolis grid. The set up is concentrating on its first energy supply in late 2026. Equinor and BP in January of this yr terminated their settlement to promote energy to New York state from their proposed Empire Wind 2 offshore wind farm.
Strike Worth
Empire Wind 1 could have a strike worth of $155 per MWh. A strike worth is an settlement between a vendor and buyer in a monetary energy buy settlement. The vendor is paid the strike worth for delivering null electrical energy, or energy from a renewable vitality set up, into the wholesale market. The vendor and buyer then trade any distinction between the strike worth and the wholesale market worth, so the vendor all the time receives the strike worth.
Equinor mentioned it expects monetary shut of the venture by the tip of this yr. The corporate mentioned it intends to usher in a accomplice to cut back monetary publicity.
Officers mentioned the signing of the offtake settlement additional solidifies progress made by Empire Wind 1. The venture will create greater than 1,000 union jobs through the development part, and assist construct out a home provide chain for the U.S. offshore wind trade.
Terminal Being Rebuilt
An necessary characteristic of Empire Wind 1 is the transformation of the venerable South Brooklyn Marine Terminal in Sundown Park, Brooklyn. The terminal might be rebuilt utilizing union labor and function the first staging and meeting space for Empire Wind 1. Going ahead, the port might be positioned as a central hub for future offshore wind tasks because the trade grows alongside the Northeast seaboard within the coming many years.
NYSERDA President and CEO Doreen M. Harris mentioned, “Main renewable vitality infrastructure tasks similar to Empire Wind 1 are an important part in reaching towards New York’s local weather targets. NYSERDA applauds Equinor for its ongoing dedication to investing in New York’s inexperienced economic system, together with the redevelopment of South Brooklyn Marine Terminal, and serving to to face up New York’s offshore wind trade one vital milestone at a time.”
As a part of this settlement, the venture is ready to offer a spread of financial advantages that may assist financial growth in New York Metropolis and throughout the state, together with elevated funding for workforce and group growth, with vital native investments already made within the Offshore Wind Studying Heart, the Offshore Wind Innovation Hub, and the Offshore Wind Ecosystem Fund. Empire Wind 1 has a dedication to spend tens of tens of millions of {dollars} on companies owned by minorities, girls, and service-disabled veterans, principally targeted on onshore growth at South Brooklyn Marine Terminal.
—POWER edited this content material, which was contributed by Equinor Renewables America’s communications division.
