Equinor and BP have shut down the Empire Wind 2 offshore wind farm in New York State, however a reorganization can’t be dominated out.
The 2 firms have agreed with the New York State Power Analysis and Growth Authority (NYSERDA) to terminate the Offshore Wind Renewable Power Certificates (OREC) settlement for the 1,260 megawatt (MW) Empire Wind 2.
Equinor and bp stated the choice to terminate Empire Wind 2 was because of “industrial situations pushed by inflation, rates of interest and provide chain disruptions” that prevented the prevailing OREC settlement from being viable.
The state’s utility regulator, the New York Public Service Fee (NYPSC), declined to renegotiate Empire Wind’s contracts at greater costs, regardless of a name from Equinor and bp.
Nevertheless, the 2 firms are nonetheless very a lot on the desk, as they referred to as this cancellation a ‘reset’ of their announcement and say they’re ‘in search of new gross sales alternatives’. They stated the already mature venture may get a brand new lease of life in some kind or the opposite as there’s help from the state to revive the faltering tasks.
Molly Morris, president of Equinor Renewables Americas, stated:
Industrial viability is key for formidable tasks of this measurement and scale. The Empire Wind 2 resolution gives the chance to reset and develop a stronger and extra sturdy venture sooner or later. We’ll proceed to carefully interact our many neighborhood companions throughout the state.
As evidenced by progress on the South Brooklyn Marine Terminal, our offshore wind exercise is poised to generate union jobs and important financial exercise in New York.
In October, Governor Kathy Hochul (D-NY) introduced a 10-point plan to assist clear power builders “overcome the current macroeconomic and inflation challenges which have impacted the renewable power sector.”
In late October, NYSERDA awarded three offshore wind contracts to different builders at a lot greater costs than the Empire Wind tasks, and that is excellent news for bp and Equinor, who’re in search of a reset.
The Biden administration authorised Empire Wind 1 and a couple of on November 21, 2023, and Empire Wind 1’s OREC settlement is unchanged.
Learn extra: Essentially the most highly effective wind turbine on this planet has set a world file
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