Norwegian energy company Equinor has secured a $3 billion financing package for its Empire Wind 1 project, an offshore wind initiative in the US. The deal was made possible by strong interest from lenders, including many of Equinor’s relationship banks. The financing terms are competitive, reflecting the project’s potential.
The Empire Wind project is being developed in two phases. Empire Wind 1 has a contracted capacity of 810 MW, while Empire Wind 2 could generate over 1.2 GW. The total capital investment for both phases, including fees for using the South Brooklyn Marine Terminal, is approximately $5 billion, factoring in expected future tax credits.
Equinor won the lease for the Empire Wind area in 2017. In June 2024, the company signed a Purchase and Sale Agreement with the New York State Energy Research and Development Authority (NYSERDA) for Empire Wind 1 power for 25 years, at a strike price of $155 per MWh. Once completed in 2027, Empire Wind 1 will power 500,000 homes in New York.
Equinor plans to partner with another company in the project to reduce exposure and enhance value. Currently, Equinor is the sole owner of Empire Wind 1 following a swap of assets with BP. Construction on the project, located southeast of Long Island, has already begun.
