Norway’s Equinor and Denmark’s Ørsted have secured provisional contracts as part of New York’s fourth auction that could deliver more that 1.7 GW of new offshore wind capacity.
Equinor’s 810 MW Empire Wind 1 and 924 MW Sunrise Wind developed by Ørsted and Eversource will now begin the next steps of finalising the OREC (offshore wind renewable energy certificates) deals, most likely in Q2 this year.
Equinor said it plans to make a final investment decision in mid-2024, and to use project financing, with financial close anticipated by end of 2024. Full-cycle nominal equity returns for the US East Coast offshore wind investments is currently expected within the range of 12-16%. Equinor added it intends to bring in a partner on the project “to enhance value and reduce ownership share and exposure”.
“Today’s award is an important milestone in our continued efforts to maximize value creation from Empire Wind 1, currently one of the biggest and most mature renewables projects in the US. The award represents an important contribution to New York’s climate ambitions from a large-scale project in a growth market that has demonstrated a strong commitment to offshore wind,” said Pål Eitrheim, executive vice president of Equinor Renewables.
Ørsted ‘s project is anticipated to be operational in 2026 and will begin the full scope of construction once it has received all federal permits, slated for this summer. The final investment decision on Sunrise Wind is expected to be made in the second quarter of 2024.
“With the selection of Sunrise Wind, New York’s offshore wind story is set to enter a new chapter of large-scale job creation and economic development, and we thank Governor Hochul and her administration for their continued leadership,” said David Hardy, Group EVP and CEO Americas at Ørsted.
The New York State Energy Research and Development Authority (NYSERDA) said the projects would create more than 800 construction jobs and see investment of around $2bn across the state. The two projects will also be the largest power generation projects in New York State in over 35 years once they enter operation in 2026.
