The offshore wind project Empire Wind 1 has reached a significant milestone by securing $3 billion in financing, finalized in December 2024. Developed by Equinor, the project spans an 80,000-acre area near Long Island and is set to connect an offshore wind farm to New York City’s power grid with a contracted capacity of 810 MW.
Strategic context and financing
The financing reflects growing investor interest in renewable energy in the United States. The project benefits from competitive financial conditions due to strong participation from specialized lenders and long-term financial partners. These funds will support total investments estimated at $5 billion, including fees for using the South Brooklyn Marine Terminal (SBMT).
Empire Wind 1 aligns with U.S. energy policy goals to diversify energy sources and reduce reliance on fossil fuels. The power purchase agreement signed with the New York State Energy Research and Development Authority (NYSERDA) guarantees a fixed price of $155/MWh for 25 years, highlighting the project’s importance to the region’s energy transition.
Economic and energy impact
The development of infrastructure, particularly the renovation of the South Brooklyn Marine Terminal, represents a significant economic opportunity for the local economy. The construction phase is mobilizing over 1,000 unionized jobs, demonstrating the stakeholders’ commitment to integrating social benefits into this strategic project.
From an energy perspective, Empire Wind 1 addresses critical objectives: enhancing U.S. energy security, reducing carbon emissions, and providing a reliable renewable energy source to one of the most densely populated urban areas in the country.
Outlook for the offshore wind industry
With its commissioning planned for 2027, Empire Wind 1 embodies the potential of large-scale offshore wind projects in the United States. This project could also serve as a model for future investments in other coastal regions.
Simultaneously, Equinor plans to reduce its exposure by seeking a strategic partner to enhance the project’s value. This approach illustrates a growing
