Equinor secures $3bn in financing for US offshore wind project

Norwegian energy giant Equinor has secured a $3bn financing package for its Empire Wind 1 project in the US.

The company explained that the project was able to secure competitive terms due to strong interest from lenders. “The final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks,” Equinor stated.

The project is part of the Empire Wind lease which is being developed in two phases – Empire Wind 1 with a contracted capacity of 810 MW and Empire Wind 2 with a potential capacity of more than 1.2GW.

The expected total capital investments, including fees for using the South Brooklyn Marine Terminal, are approximately $5bn including the effect of expected future tax credits.

The Empire Wind lease area was awarded in 2017. In June last year, Equinor announced the execution of the Purchase and Sale Agreement with the New York State Energy Research and Development Authority for Empire Wind 1 power for 25 years at a strike price of $155 per MWh. Empire Wind 1 will power 500,000 New York homes and is expected to reach its commercial operation date in 2027.

Equinor said it intended to farm down in the Empire Wind 1 project to a new partner to enhance value further and reduce exposure. The Norwegian firm is the sole owner of the project following a swap of asset stakes with BP.

Equinor made a final investment decision on the wholly owned and operated Empire Wind 1 last year. Construction has already begun. It is located southeast of Long Island and spans 325 sq km.