Empire Wind Project Halted Over National Security Concerns

The Empire Wind 1 offshore project by Equinor is halted due to U.S. national security concerns. The project, which could power 500,000 homes, was over 60% complete. Equinor warns of significant impact if the issue isn't resolved quickly. Previously, a $763 million impairment was booked related to this project.

The Empire Wind 1 offshore wind project by Norwegian energy group Equinor has come to a halt following a stop work order from the U.S. government, citing national security concerns. As of the statement on Monday, the U.S. Department of the Interior suspended leases for five major offshore projects.

Empire Wind has a generation capacity of 810 megawatts, sufficient to supply energy to 500,000 homes once completed. The project, now more than 60% finished, is situated off the coast of New York. Equinor is actively communicating with authorities to uncover the underlying issues.

The order significantly threatens current progress, potentially impacting the South Brooklyn Marine Terminal development, valued at $3.1 billion as of the end of September. The company disclosed that $2.8 billion had been used from its project finance term loan by late November.

(With inputs from agencies.)