Trump lifts halt to Equinor's Empire Wind after month-long standoff
Developer clear to resume work on New York offshore wind project after top-level negotiations
The US government on Monday lifted its controversial 16 April work order for the fully-permitted 800MW Empire Wind I offshore project facing New York City, allowing construction activities to resume, developer Equinor said in a statement.
“We appreciate the fact that construction can now resume on Empire Wind, a project which underscores our commitment to deliver energy while supporting local economies and creating jobs,” said Anders Opedal, CEO of Equinor.
Secretary of Interior Doug Burgum had abruptly ordered all construction work to halt because his executive-level cabinet department had “uncovered” evidence that the previous administration of President Joe Biden had rushed the federal approvals process.
Equinor did not provide details of the agreement reached with DoI and its agency, Bureau of Ocean Energy Management (BOEM), which administers federal bottomlands along the Atlantic and Pacific Oceans, and Gulf of Mexico.
Burgum said on social media that he was encouraged by Hochul's "willingness to move forward on critical pipeline capacity".
There was no immediate official comment from DoI or BOEM, but the Trump administration had come under intense pressure following the halt order, with Norwegian finance minister Jens Stoltenberg apparently involved in talks over the matter.
The move was unprecedented for the nascent industry as Empire Wind I had all the requisite federal approvals and was 30% complete. While Trump during last year’s election campaign vowed to halt the sector on “Day One” in office, DoI’s move to halt it threatened to undermine the US’s longstanding safe haven status for investment.
The Norwegian oil and gas giant recently told investors it is potentially on the hook for billions of dollars over Empire Wind and had threatened to take legal action.
Molly Morris, head of Equinor Renewables Americas, last week warned the company would be forced to terminate the project “within days” unless Trump’s Department of Interior (DoI) allowed construction to continue.
Equinor has spent more than $2.5bn on the project, according to Morris, with costs running as high as $50m per week, and with as many as 11 vessels on standby.
Equinor thanked President Donald Trump “for finding a solution that saves thousands of American jobs and provides for continued investments in energy infrastructure in the US,” and cited Hochul for her “constructive collaboration with the Trump administration” to reach an agreement.
Industry lobby groups welcomed the move by DoI to left the ban.
Jason Grumet, CEO of the American Clean Power Association, commended the administration for allowing construction to proceed, noting “Fully permitted projects must have policy consistency and certainty to deliver the infrastructure required to meet America’s growing electricity demand.”
He added: “Our nation needs all types of energy infrastructure to lower energy prices and support economic growth.”
Liz Burdock, CEO of industry promotion group Oceantic, said after more than a month of uncertainty, “America is back on track with an all-above energy approach, one that puts thousands of skilled workers back on the job, reignites construction in our nation’s shipyards, and sends mariners back to sea."