Insider Brief
- The Trump administration has ordered a construction halt on Equinor’s Empire Wind project off the coast of New York, citing a need for further review despite its full federal permitting and recent $3 billion financing milestone.
- Interior Secretary Doug Burgum directed the Bureau of Ocean Energy Management to pause the fully-approved project, calling the Biden administration’s 2024 authorization rushed, though specific concerns were not detailed.
- The move, following similar setbacks for offshore wind developments like Atlantic Shores, casts uncertainty over the U.S. offshore wind sector and its role in meeting state and federal clean energy goals.
The Trump administration has ordered a halt to construction on a major offshore wind project off the coast of New York, raising fresh uncertainty over the future of renewable energy development in the U.S.
The Associated Press is reporting Interior Secretary Doug Burgum has directed the Bureau of Ocean Energy Management (BOEM) to stop work on the Empire Wind project, citing the need for additional review. The move is the latest in a series of steps by the administration to challenge or reverse progress on wind energy projects.
Empire Wind, a development by Norwegian energy company Equinor, had cleared all federal permitting requirements and began construction earlier this year. BOEM had approved its construction and operations plan in February 2024.
Equinor finalized its lease with the federal government for the site in March 2017, during President Trump’s first term. But Burgum said the Biden administration, which accelerated permitting during its tenure, had acted too quickly in greenlighting the project.
“The previous administration rushed this approval through without proper scrutiny,” Burgum said in a statement, according to AP. He did not provide specific concerns but said further analysis was needed.
The order to stop construction adds to a growing list of obstacles for the offshore wind industry. Last month, the Trump administration revoked the Clean Air Permit for Atlantic Shores, a separate wind project off the New Jersey coast that had not yet broken ground.
Offshore wind, once expected to play a major role in the U.S. energy transition, has faced mounting political and economic headwinds. Trump has long voiced skepticism toward wind energy, calling it unreliable and expensive. On his first day in office after returning to the presidency, he signed an executive order freezing wind lease sales in federal waters and pausing permits and loans tied to such projects.
Equinor acknowledged the administration’s decision Wednesday and said it would work with federal officials to understand the rationale. “We have received the notification and will engage directly with BOEM and the Department of the Interior to understand the questions raised about the permits,” a spokesperson told the AP.. The company declined to comment on how the stoppage might affect its construction timeline or the broader project outlook.
Empire Wind is located southeast of Long Island and has been central to New York’s plans to expand clean energy. The state has set aggressive climate goals, including sourcing 70% of electricity from renewables by 2030.
“Halting construction of fully permitted energy projects is the literal opposite of an energy abundance agenda,” the American Clean Power Association said in a response to the order. “With skyrocketing energy demand and increasing consumer prices, we need streamlined permitting for all domestic energy resources. Doubling back to reconsider permits after projects are under construction sends a chilling signal to all energy investment.
The project announced in early January that Equinor had secured over $3 billion in financing for its Empire Wind 1 offshore wind project, marking a major milestone in the effort to bring large-scale renewable energy to New York. The project, which will provide electricity for 500,000 homes, reached financial close at the end of 2024 and is expected to begin commercial operations in 2027.
Located 15 to 30 miles southeast of Long Island, Empire Wind 1 spans 80,000 acres and is set to become the first offshore wind project to connect directly to the New York City grid. The total capital investment is estimated at $5 billion, which includes tax credit benefits and fees related to the redevelopment of the South Brooklyn Marine Terminal. That terminal is being transformed into a key hub for the offshore wind industry and is already employing over 1,000 workers.
Equinor signed a 25-year agreement with the New York State Energy Research and Development Authority in June 2024 to deliver power at a strike price of $155 per megawatt-hour.
