Equinor Records USD 955 Million Loss Due to Empire Wind Impairment
The Empire Wind 1 project, set to be the first offshore wind farm connected to New York City's grid, has faced several challenges recently. Here's a rundown of the key updates, challenges, and recent developments:
Current Challenges
Equinor, the project developer, has reported a significant impairment of $763 million related to Empire Wind 1 and its associated South Brooklyn Marine Terminal (SBMT) project. This impairment is due to ongoing challenges in navigating U.S. federal and state regulations[1][5].
New York State has halted the development of offshore wind transmission until federal conditions allow for it, which could potentially impact the overall progress of the project[1].
Recent Updates
Construction on Empire Wind 1 resumed in May 2025 after being temporarily halted by the federal government. The project aims to add 816 MW of power[1].
Recent updates include boulder relocation and pre-lay cable protection measures, which are part of the ongoing construction activities[2].
A U.S.-built service operations vessel, ECO Liberty, was launched to support the Empire Wind project, enhancing operational capabilities[4].
Construction Activities
Equinor continues to conduct surveys using ground-penetrating radar technology to locate utility lines for transmission line burial. Permitting processes are ongoing, with recent updates on construction notices and environmental management plans[2].
Project Details
The SBMT will be the location of Equinor's operations and maintenance (O&M) facility for the Empire Wind 1 project. The project is located 25-48 kilometres (15-30 miles) southeast of Long Island.
Empire Wind 1 will consist of 54 Vestas 15 MW wind turbines. The project aims to complete planned activities in the offshore installation window in 2025, with full commissioning scheduled for the following year.
In its Q2 2025 report, Equinor stated that the offshore wind industry is facing major financial and regulatory challenges in the US. The report includes an impairment of USD 955 million related to Equinor's Empire Wind projects in the US[6].
[1] https://www.reuters.com/business/us-equinor-resumes-construction-new-york-offshore-wind-farm-2025-05-21/ [2] https://www.offshorewind.biz/news/equinor-resumes-construction-at-empire-wind-offshore-wind-farm-in-us/ [3] https://www.reuters.com/business/us-equinor-takes-charge-us-wind-farm-impairment-charge-2025-07-28/ [4] https://www.offshorewind.biz/news/us-built-service-operations-vessel-launched-to-support-equinor-wind-project/ [5] https://www.reuters.com/business/us-equinor-takes-charge-us-wind-farm-impairment-charge-2025-07-28/ [6] https://www.reuters.com/business/equinor-posts-lower-profit-as-oil-prices-fall-2025-08-05/
- The renewable-energy industry, specifically the offshore wind sector in the United States, is currently facing significant financial challenges, as outlined in Equinor's Q2 2025 report, which includes an impairment of USD 955 million related to Equinor's Empire Wind projects.
- The finance sector might be impacted by the ongoing regulatory challenges in navigating U.S. federal and state regulations, as the delays in offshore wind transmission development could affect the financial performance of projects like the Empire Wind 1.
- The Empire Wind 1 project, a key endeavor in the renewable-energy industry, aims to add 816 MW of power to New York City's grid once completed. The project's business operations will be based at the South Brooklyn Marine Terminal (SBMT), with construction activities ongoing and plans for full commissioning in the following year.
