Equinor Secures $3B Funding for Empire Wind 1 in the US

Norwegian energy leader Equinor has secured a $3 billion financing package to support its Empire Wind 1 project in the United States.

The company highlighted that the financing was secured on favorable terms, driven by strong interest from lenders. “The final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks,” the company stated.

Empire Wind is being developed in two phases: Empire Wind 1, with a contracted capacity of 810 MW, and Empire Wind 2, which could provide over 1.2 GW of energy.

Total project investments, including costs related to the South Brooklyn Marine Terminal, are estimated at approximately $5 billion, factoring in anticipated tax credits.

The lease area for Empire Wind was awarded in 2017. In June 2023, Equinor finalized a 25-year Purchase and Sale Agreement with the New York State Energy Research and Development Authority for Empire Wind 1 power at a strike price of $155 per MWh. Once operational in 2027, Empire Wind 1 is expected to supply energy to 500,000 homes in New York.

Equinor also plans to bring in a new partner to the Empire Wind 1 project to maximize value and reduce financial exposure. Following a swap of asset stakes with BP, Equinor remains the sole owner of the project.

The company made its final investment decision on Empire Wind 1 last year, and construction is already underway. The project spans 325 square kilometers southeast of Long Island.