BP and Equinor have canceled plans for a 1.3 GW offshore wind energy facility off of Long Island’s southern coast, the companies jointly announced Wednesday.
Empire Wind II is the second stage of an offshore wind project in New York state waters with 2.1 GW in proposed capacity, enough to provide electricity for 700,000 homes.
The project was the subject of substantial backlash from community groups in Long Beach, NY (where a transmission cable was planned to be placed); Governor Kathy Hochul vetoed a bill to expedite its construction in October, a premonition of the project’s ultimate fate.
The first stage, Empire I (800 GW capacity), received regulatory approval from the New York State Public Service Commission in December, and is expected to come online in 2027. But BP and Equinor’s 50-50 joint venture in New York appears to be drastically limiting its scope, at least for the time being.
Macroeconomic conditions continue to hamper offshore wind development in the United States, with Empire Wind II’s cancellation following similar news of scrapped or downsized projects in New Jersey and Massachusetts in 2023.
“The decision recognizes commercial conditions driven by inflation, interest rates and supply chain disruptions,” Equinor said in a press release Wednesday.
“Commercial viability is fundamental for ambitious projects of this size and scale. The Empire Wind II decision provides the opportunity to reset and develop a stronger and more robust project going forward,” Molly Morris, president of Equinor Renewables Americas, said Wednesday.
BP and Equinor each expressed their desire to participate in a new round of offshore wind auctioning started by the New York state government in November, as the state aims to install 9 GW of offshore wind capacity by 2035. So as BP and Equinor walk away from Empire Wind II, it may represent more of a delay than a death knell for renewable energy targets in New York.
While New York state may eventually reach its wind energy targets from new projects, albeit later than originally expected, Empire Wind II’s cancellation may serve more consequential to the Biden Administration’s green energy ambitions—Biden aims to install 30 GW in new offshore wind capacity by 2030.
With the US presidential election ten months away—and former president Donald Trump vocally opposing offshore wind energy on the campaign trail—the Biden Administration may have a limited window of opportunity to secure new offshore wind projects before the regulatory environment changes drastically in 2025.
Empire Wind II had received approval from the US Department of Interior in November; neither the Department of Interior nor the Department of Energy has yet released a public statement on the matter.
