News Summary
Equinor has reported a $995 million financial impairment regarding its Empire Wind offshore energy project due to regulatory challenges in the U.S. Changes to regulations, including the removal of investment tax credits, have cast doubt on the project’s viability. Although the project, aimed at delivering 810 megawatts of capacity, is over 30% complete, significant opposition and escalating costs threaten its future. Equinor’s financial performance remains strong, but the outlook for Empire Wind remains uncertain as local energy supply impacts loom.
Equinor Reports Major Setback for Empire Wind Offshore Project
Equinor has announced a significant financial impairment of $995 million concerning its Empire Wind offshore energy project, largely due to regulatory challenges faced in the United States. This impairment is specifically related to plans for a turbine array off the New York coast and the associated South Brooklyn Marine Terminal project. As a result of these developments, Equinor’s leadership has expressed their concern regarding the project’s future viability.
Regulatory Changes Impacting Project Viability
The primary driver behind the impairment has been attributed to changes in U.S. regulations, including the removal of investment tax credits vital for new energy developments. Furthermore, the South Brooklyn Marine Terminal was initially anticipated to support additional energy projects that have now become uncertain, further complicating the overall outlook of Empire Wind.
Project Capacity and Timeline
Empire Wind aims to deliver a total capacity of 810 megawatts after completion, comprised of 54 turbines. Originally, the project won a federal lease in 2017 while the Trump administration was in power. However, as political climate shifts occur, the future of the Empire Wind project hangs in the balance, especially considering earlier threats to halt offshore projects entirely.
Stop-Work Order and Current Status
In April 2025, the Empire Wind project faced a stop-work order issued by the Interior Secretary Doug Burgum. This order was later lifted in May 2025 following negotiations with New York State officials regarding necessary approvals for natural gas pipelines. Despite this easing of regulations, the path forward remains fraught with obstacles, as significant opposition from local beach resort businesses and commercial fishermen in both New York and New Jersey persists.
Escalating Project Costs
Additionally, projected tariffs are estimated to contribute an extra $300 million to the overall cost of the project, exacerbating financial concerns. Following the recent impairments, Equinor reported that the book value of the Empire Wind project has dropped to $2.3 billion.
Future Prospects and Current Progress
Plans for a future second phase of Empire Wind are currently on hold due to the withdrawal of tax credits aimed at promoting renewable energy. In the second quarter of 2025 alone, Equinor reported impairments totaling $955 million associated with its offshore wind portfolio in the U.S.
Empire Offshore Wind LLC, a subsidiary of Equinor, has been informed by the Bureau of Ocean Energy Management (BOEM) that the stop-work order has been lifted. A restoration of progress on the project is expected, thanks in part to support from various political figures and groups during the negotiations aimed at advancing the initiative.
Impact on Local Energy Supply
Once completed, the Empire Wind project will provide power to approximately 500,000 homes in New York. As of now, construction status indicates that the project is more than 30% complete. The targeted date for commercial operation is slated for 2027, with the intention of executing planned activities within the offshore installation window in 2025.
Company Financial Performance
In terms of overall financial health, Equinor reported an adjusted operating income of $6.53 billion for the second quarter of 2025, alongside a net operating income of $5.72 billion. Despite the challenges facing the Empire Wind project, the company’s broader financial metrics remain strong, indicating a potential resilience that could play a role in navigating future hurdles.
Deeper Dive: News & Info About This Topic
Construction NY Resources
Executive Order to Phase Out Federal Subsidies for Wind and Solar Energy
Long Island Construction Employment Declines amid Economic Uncertainty
Additional Resources
- WorkBoat: Equinor Reports Major Setback for Empire Wind Offshore Project
- Wikipedia: Empire Wind
- Reuters: Equinor’s Offshore Wind Writedown
- Google Search: Empire Wind
- Wind Power Monthly: Equinor Takes Heavy Hit on Empire Wind Setbacks
- Encyclopedia Britannica: Offshore Wind Farm
- ABC News: Empire Wind Offshore Project
- Google News: Empire Wind Project
- Seafood Source: Fulton Fish Market and Empire Wind Project
- Google Scholar: Equinor Impairment Empire Wind
Author: Construction NY News
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at constructionnynews.com, your go-to source for actionable local news and information in New York and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the New York Build Expo, infrastructure breakthroughs, and cutting-edge construction technology showcases. Our coverage extends to key organizations like the Associated General Contractors of New York State and the Building Trades Employers' Association, plus leading businesses in construction and real estate that power the local economy such as Turner Construction Company and CMiC Global. As part of the broader network, including constructioncanews.com, constructiontxnews.com, and constructionflnews.com, we provide comprehensive, credible insights into the dynamic construction landscape across multiple states.
