“Equinor and bp today announced an agreement with the New York State Energy Research and Development Authority (NYSERDA) to terminate the Offshore Wind Renewable Energy Certificate (OREC) Agreement for the Empire Wind 2 project, an offshore wind project in the US with potential generative capacity of 1,260 MW.“
January 3, 2024
NEW YORK, NY — In a press release today another offshore wind project located off the coast of New Jersey and New York named Empire Wind 2 has been terminated. According to a press release by Equinor and BP-British Petroleum.
The companies say that the decision recognizes commercial conditions driven by inflation, interest rates and supply chain disruptions that prevented Empire Wind 2’s existing OREC agreement from being viable.
“Commercial viability is fundamental for ambitious projects of this size and scale. The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward,” said Molly Morris, president of Equinor Renewables Americas.
The companies did not mention the status of Empire Wind 1 in today’s new release.
More about Empire Wind can be found here.
On October 31, 2023, the Board of Directors of Ørsted, decided to cease the development of U.S. Offshore Projects, Ocean Wind 1 and Ocean Wind 2 off the coast of New Jersey. Govenor Phil Murphy called that decision by Orsted to abandon its commitments to New Jersey outrageous and called into question the company’s credibility and competence.
BP and Equinor pull out of contract for offshore wind project off Monmouth County coastline
Over-stated value and benefits are exposed by the reality of economic costs, national security risks and environmental dangers
MIDDLETOWN—Rep. Chris Smith (R-Manchester) today welcomed news that BP and Equinor have cancelled their contract for the “Empire Wind 2” offshore wind project located off the Monmouth County coastline:
“Just two months after Orsted pulled out of its huge taxpayer-subsidized deal approved by Governor Murphy, BP and Equinor have followed suit by terminating their contract for an offshore wind project off the Monmouth County coastline citing ‘changed economic circumstances on an industry-wide scale.’
The promise of benefits and jobs was always over-hyped and predicated on the backs of ratepayers. Now that taxpayers and boardrooms are getting an honest look, the projects simply don’t measure up to the hype.
According to an Equinor press release, ‘the decision recognizes commercial conditions driven by inflation, interest rates and supply chain disruptions that prevented Empire Wind 2’s existing OREC agreement from being viable.’
Despite the clear indication that these projects are economically unsustainable and pose serious dangers to our marine environment and national security, President Biden and Governor Murphy have rejected calls for objective studies, doubled down and insisted that these projects must continue—no matter the huge taxpayer subsidies they require and the credible predictions of big increases to ratepayers.
It’s long past time for Biden and Murphy to stop recklessly pushing these unsound and improperly vetted projects and trying to prop them up by irresponsibly throwing billions of US taxpayer dollars at these foreign corporations.
While this terminated contract marks another victory for concerned residents, commercial and recreational fishermen, and the environmentalists who have been working with me to expose the dangers inherent in the massive ocean industrialization of the Jersey Shore, we must continue to fight against Biden and Murphy’s extreme policies and put an end to ocean wind development off our beautiful shore. Enough is enough.”
Full press release from Equinor and BP below:
Equinor and bp today announced an agreement with the New York State Energy Research and Development Authority (NYSERDA) to terminate the Offshore Wind Renewable Energy Certificate (OREC) Agreement for the Empire Wind 2 project, an offshore wind project in the US with potential generative capacity of 1,260 MW.
This agreement reflects changed economic circumstances on an industry-wide scale and repositions an already mature project to continue development in anticipation of new offtake opportunities. The decision recognizes commercial conditions driven by inflation, interest rates and supply chain disruptions that prevented Empire Wind 2’s existing OREC agreement from being viable.
Equinor and bp believe offshore wind can be an important part of the energy mix and are committed to maintaining substantial contributions to the state and local economy.
“Commercial viability is fundamental for ambitious projects of this size and scale. The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward,” said Molly Morris, president of Equinor Renewables Americas. “We will continue to closely engage our many community partners across the state. As evidenced by the progress at the South Brooklyn Marine Terminal, our offshore wind activity is ready to generate union jobs and significant economic activity in New York.”
“bp is supportive of NYSERDA’s leadership and commitment to offshore wind, which we believe is a critical part of New York State’s and America’s clean energy future,” said Joshua Weinstein, bp’s president of offshore wind Americas. “Offshore wind can deliver reliable renewable power as well as economic benefits to the state and its communities.”
The Empire Wind 1 and Empire Wind 2 projects recently reached a key federal permitting milestone, having received the federal Record of Decision from BOEM; last month, Empire Wind 1 also received its Article VII Certificate of Environmental Compatibility and Public Need in New York.
About Empire Wind
Empire Wind is being developed through a 50-50 joint venture between Equinor and bp. Empire Wind is located 15-30 miles southeast of Long Island and spans 80,000 acres, with water depths of between approximately 75 and 135 feet. The lease was acquired in 2017. The project’s two phases, Empire Wind 1 and 2, have a potential capacity of more than 2 GW (816 + 1,260 MW). www.empirewind.com
About Equinor Renewables Americas
Equinor is one of the largest offshore wind developers in the world. Its work in the United States includes operating two lease areas off New York, Empire Wind and Beacon Wind. Equinor has also been awarded a lease on the Outer Continental Shelf off California. The United States is an attractive growth market for Equinor, with an ambition to install 12-16 GW of renewables capacity globally by 2030. www.equinor.com/NY
About bp
bp’s ambition is to become a net zero company by 2050 or sooner, and to help the world get to net zero. We’re transforming bp from an international oil and gas company to an integrated energy company – and America is core to the strategy. bp has a larger economic footprint in the United States than anywhere else in the world, investing more than $145 billion since 2005 and supporting more than 275,000 jobs. For more information on bp in the US, visit www.bp.com/us.
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