On April 16, 2025, the Bureau of Ocean Energy Management (BOEM) issued a directive to pause all offshore construction activities for the Empire Wind project on the outer continental shelf. The suspension, effective immediately, will remain in place until a comprehensive review is completed. The decision was made by Interior Secretary Doug Burgum, in consultation with Commerce Secretary Howard Lutnick, to ensure a thorough evaluation of the project’s impacts.

The federal lease for Empire Wind was secured in 2017, with Empire Wind 1 having obtained all necessary permits.

Empire Offshore Wind, fully owned by Equinor through Equinor Wind US, is complying with the order and has halted relevant marine operations while prioritizing the safety of workers and the environment. Equinor issued a statement: “We will engage directly with BOEM and the Department of Interior to understand the questions raised about the permits we have received from authorities.” The company is also exploring legal options, including a potential appeal, and is in discussions with authorities to address the concerns.

The Empire Wind project, contracted by the New York State Energy Research and Development Authority (NYSERDA), consists of two phases: Empire Wind 1 and Empire Wind 2. Empire Wind 1, which has secured all necessary permits, is designed to supply electricity to approximately 500,000 homes in New York. Over 1,500 workers have been employed in the U.S. during the construction phase. The federal lease for the project was obtained in 2017.

The project’s gross book value, as of March 31, 2025, is approximately $2.5 billion, including the South Brooklyn Marine Terminal. A project finance term loan of about $1.5 billion has been drawn, with Equinor US Holdings providing guarantees for the equity commitment. If the suspension leads to a full halt, the $1.5 billion loan would be repaid from the equity commitment, and Empire Offshore Wind could face termination fees with suppliers. Earlier this year, Equinor secured a financing package exceeding $3 billion for the project.

Empire Offshore Wind is committed to addressing the concerns raised by BOEM and is working to ensure the project aligns with regulatory standards. The company has refrained from speculating on the financial or operational impacts until further details are provided by the authorities. The review process will determine the next steps for this significant renewable energy initiative aimed at supporting New York’s clean energy goals.