New York's Empire Wind 1 project secures $3b financing package

The Empire Wind 1 project in the US has now secured a project financing package of over $3 billion. Financial close was reached at the end of December 2024 said Equinor in a statement.

Empire Wind 1 is projected to power 500,000 New York homes and is expected to reach its commercial operation date in 2027.

The expected total capital investments, including fees for the use of the South Brooklyn Marine Terminal (SBMT), are approximately $5 billion including the effect of expected future tax credits (ITCs).

Equinor acquired the Empire Wind lease area in 2017. In June 2024, Equinor announced the execution of the purchase and sale agreement (PSA) with the New York State Energy Research and Development Authority for Empire Wind 1 power for 25 years at a strike price of $155.00/MWh.

Equinor said it intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.

Equinor made a final investment decision on the wholly owned and operated Empire Wind 1 project earlier in 2024 and construction has already begun.

Empire Wind 1 is located southeast of Long Island and spans 80,000 acres. With a contracted capacity of 810 MW, Empire Wind 1 will be the first offshore wind project to connect into the New York City grid.

The debt financing of the project has reached financial close. Due to strong interest from lenders, the Empire Wind 1 project was able to secure competitive terms. The final group of lenders includes some of the most experienced lenders in the sector along with many of Equinor’s relationship banks.