Equinor secures funding for New York’s first offshore wind grid connection

BAKU, Azerbaijan, January 3. Equinor has
achieved financial close for its Empire Wind 1 project in the
United States, securing over $3 billion in project financing by the
end of December 2024, Trend reports via the company.

The offshore wind farm, located 15–30 miles southeast of Long
Island, will deliver 810 MW of clean energy, enough to power
500,000 New York homes. Commercial operations are slated to begin
in 2027.

Total capital investment in the project, including future tax
credits and fees for using the South Brooklyn Marine Terminal
(SBMT), is estimated at $5 billion. Construction has already begun,
marking a significant milestone in Equinor’s efforts to bolster the
growing offshore wind industry in the U.S.

In June 2024, Equinor signed a 25-year Purchase and Sale
Agreement (PSA) with the New York State Energy Research and
Development Authority (NYSERDA) at a strike price of $155/MWh. The
agreement ensures long-term revenue stability and aligns with the
industry’s evolving investment framework.

Equinor plans to farm down its stake in Empire Wind 1 to a new
partner, aiming to optimize project value and reduce risk exposure.
The project spans 80,000 acres and will be the first offshore wind
farm to connect directly to New York City’s grid.

The redevelopment of the SBMT and the construction of Empire
Wind 1 are expected to create over 1,000 union jobs during the
construction phase. The project has drawn strong interest from
leading lenders, securing competitive financing terms. The lending
group includes some of the sector’s most experienced financial
institutions alongside Equinor’s longstanding banking partners.

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