Norwegian energy firm Equinor has warned that a stop work order issued by the US Department of the Interior’s Bureau of Ocean Energy Management to its offshore wind project off the US coast could result in ‘significant impact’ to said project.
Equinor’s subsidiary, Empire Offshore Wind LLC, was issued with the stop work order, which requires the company to suspend construction activities on the Outer Continental Shelf, citing national security concerns.
Equinor’s project is one of five offshore wind projects that have received similar orders from the US government.
‘Threatens progress’
‘The stop work order threatens the progress of these activities and without a swift solution there may be significant impact to the project,’ the company said.
The Empire Wind project is more than 60% complete, with trenching, cable-laying and cable pulling already having taken place. The project involves dozens of vessels, around 1,000 personnel, and more than a hundred companies working both in the US and around the world.
Seeking clarity
Equinor said that it is engaging with the authorities to seek clarity on the decision to issue a stop work order, adding that it has to date complied with all relevant national security related requirements as part of the regulatory process, and has participated in federal security reviews since executing its lease in 2017.
The Empire Wind project, when completed, will connect to New York‘s electricity grid, providing enough power to electrify 500,000 homes. It is being developed under contract with the New York State Energy Research and Development Authority, with construction undertaken to date supporting close to 4,000 jobs.
As of 30 September this year, Empire Wind had a gross book value of around $3.1 billion, which includes investments at the South Brooklyn Marine Terminal. Over the past 35 years, Equinor has invested more than $60 billion in the US, in oil, gas, and renewable energy projects. Read more here.
