Equinor and BP exchange ownership of offshore wind projects in New York

Equinor has entered into a swap transaction with BP, resulting in a significant change in ownership of offshore wind projects in New York State. Equinor will take full control of Empire Wind’s lease and projects, while BP will take full ownership of Beacon Wind’s lease and projects. The transaction is expected to be cash neutral and will allow both companies to focus on their respective business priorities. Equinor has more than 20 years of experience in offshore wind energy and has been active in the US offshore wind energy market since 2017.

Following the agreement, Equinor has submitted a bid for the Empire Wind 1 project in New York’s fourth round of offshore wind bidding. The transaction is subject to regulatory approval, with an entry into force scheduled for January 1, 2024, and completion expected in the second or third quarter of 2024. The 810 MW Empire Wind 1 project, which has been in the making for several years, will transform the South Brooklyn Marine Terminal into an offshore wind hub and anchor the offshore wind industry on the East Coast in New York City. Beacon Wind, located off the coast of New York, will provide 1,230 MW of generation capacity.

The transaction is expected to result in an estimated total loss for Equinor of around $200 million, assuming the NY4 inquiry is positive. Molly Morris, senior vice president of renewable energy in the Americas at Equinor, expressed that Empire Wind 1 is ready to meet New York’s climate and energy goals, with numerous permits and supplier contracts secured.

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