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The Empire Wind offshore wind project of Equinor ASA and BP plc has received approval from the U.S. Department of the Interior (DOI).
Empire Wind US LLC plans to develop two offshore wind facilities, known as Empire Wind 1 and Empire Wind 2. The lease area is located about 12 nautical miles south of Long Island, New York, and about 16.9 nautical miles m east of Long Branch, New Jersey. Together, the projects would have up to 147 wind turbines with a total capacity of 2,076 megawatts (MW) of clean, renewable energy that the Bureau of Ocean Energy Management (BOEM) estimates could power more than 700,000 homes each year. The project supports the Biden administration’s goal of deploying 30 gigawatts (GW) of offshore wind energy capacity by 2030, according to a recent DOI statement.
The record of decision (ROD) represents the final step in the National Environmental Policy Act review process for the Empire Wind construction and operations plan (COP), which is scheduled for Feb. 21, 2024. Empire Wind must still receive BOEM’s final COP approval as required by its Renewable Energy Regulation, and other required federal and state authorizations.
“The federal Record of Decision is a significant milestone in advancing Equinor and BP’s Empire Wind project to help deliver on state and federal climate ambitions”, Equinor Renewables Americas President Molly Morris said in a separate statement. “Empire Wind is a defining project for New York and we continue our work to connect with communities and realize the project’s potential of providing reliable renewable power, creating jobs and spurring economic development. We thank the Biden-Harris Administration for continuing to move these important projects forward and for sending a clear signal that offshore wind will play an important role in America’s energy transition”.
The ROD includes measures aimed at avoiding, minimizing, and mitigating the potential impacts that may result from the construction and operation of the project. Among those measures, Empire Wind has committed to establishing fishery mitigation funds to compensate commercial and for-hire recreational fishers for any losses directly arising from the project, according to the DOI statement.
Since the start of the Biden administration, the DOI has approved the nation’s first six commercial-scale offshore wind energy projects, the agency said. BOEM has held four offshore wind lease auctions, which have brought in almost $5.5 billion in high bids, including a record-breaking sale offshore New York and New Jersey and the first-ever sales offshore the Pacific and Gulf of Mexico coasts. BOEM has also advanced the process to explore additional opportunities for offshore wind energy development in the U.S., including in the Gulf of Maine and offshore Oregon and the U.S. Central Atlantic coast.
“Under President Biden’s leadership, the American offshore wind industry is continuing to expand rapidly — creating good-paying union jobs across the manufacturing, shipbuilding and construction sectors”, Interior Secretary Deb Haaland said. “Today’s approval of the sixth offshore wind project adds to the significant progress towards our Administration’s clean energy goals. Together with the labor community, industry, Tribes, and partners from coast to coast, we will continue to expand clean energy development in a manner that will benefit communities, strengthen our nation’s energy security, and address climate change”.
“BOEM and our partners have already achieved so much in pursuit of the Administration’s goal of reaching 30 gigawatts of offshore wind energy capacity by 2030”, BOEM Director Elizabeth Klein said. “Extensive engagement with Tribes, other government partners, ocean users, concerned citizens, and more has helped us to avoid or reduce user conflicts while facilitating the responsible development of offshore wind projects. We look forward to continuing our work with them as we move this industry forward”.
In recent months, wind developers have been facing headwinds as interest rates keep rising. According to a September market update from Rystad Energy, “Given the capital-intensive nature of these [offshore wind] projects, however, rising interest rates can significantly impact project economics, turning many schemes into a financial burden on developers’ balance sheets”.
In the USA, developers have been seeking to renegotiate strike price agreements to account for their increased cost of financing and components. “The U.S. offshore wind industry being at a relatively nascent stage means the challenges for developers are further compounded in terms of the supply of key components, port infrastructure, and shortage of Jones Act-compliant installation vessels,” Rystad Energy Analyst Shradha Sood said in the update.
To contact the author, email rocky.teodoro@rigzone.com
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