A US judge said on Wednesday he would rule quickly on whether to allow Norwegian offshore wind developer Equinor to resume construction of the Empire Wind project off the coast of New York.
This is in a lawsuit over the Trump administration's suspension of the industry in federal waters. Judge Carl Nichols of US District Court in Washington declined to issue an immediate ruling at a hearing.
This came two days after the same court ruled Danish offshore wind developer Orsted could restart work on its nearly completed Revolution Wind project off Rhode Island.
The court decisions in these cases hold high stakes for companies and their shareholders because they could allow multi-billion-dollar projects to be completed. However, the underlying lawsuits and the administration's aversion to offshore wind will continue to create uncertainty.
Equinor's request for an injunction, which would allow work to continue while the lawsuit proceeds, is the latest in a string of legal challenges to US President Donald Trump's opposition to the offshore wind sector.
Trump's Interior Department last month paused activity on five offshore wind leases, citing new classified information on risks to national security from radar interference.
During the hour-long hearing, Empire Wind attorney Ann Navaro said the pause created an "existential risk" for the company. She added that it could lose access to construction vessels it needs to complete the $5.5 billion project.
US Department of Justice attorney Stanley Woodward, arguing for the administration, said national security concerns justified the halt. He argued the "parade of horribles" Empire Wind said would result from the pause was "speculative."
Nichols questioned whether the government's national security concerns would apply during construction of the project as opposed to during operations. Empire Wind said the project is not slated to start operations until October.
The judge also raised the possibility of temporarily halting the pause before ruling on the merits of the case in an expedited proceeding.
Equinor has spent $4 billion on its project, and said in court papers that it faces likely termination if it cannot proceed by January 16. Empire Wind is located 20 miles (32 kilometres) off the coast of Long Island and is about 60 per cent complete.
It is expected to produce electricity to power about 500,000 homes. Offshore wind developers, including Equinor, have faced repeated disruptions under Trump, who says wind turbines are ugly, expensive and inefficient.
Empire Wind was halted previously by the administration for a month last year.
(Reporting by Nichola Groom; Editing by Alistair Bell and Rod Nickel)
