Equinor and BP said that their existing OREC agreement for Empire Wind 2 is not viable due to changes in economic conditions, including inflation, interest rates and supply chain disruptions
Equinor and BP have agreed to terminate their offshore wind renewable energy certificate (OREC) with the New York State Energy Research and Development Authority (NYSERDA) for the Empire Wind 2 offshore wind project.
The Empire Wind 2 project is a part of the Empire Wind development, which also includes the 816MW Empire Wind 1 offshore wind project.
Located 15 to 30 miles (48km) southeast of Long Island, the Empire Wind offshore wind project is being developed as a 50-50 joint venture between Equinor and BP.
Equinor and BP said that their existing OREC agreement for Empire Wind 2 is not viable due to changes in economic conditions, including inflation, interest rates and supply chain disruptions.
The termination of the OREC deal will reposition an already mature project to continue development in anticipation of new off-take opportunities, said the wind project developers.
Equinor Renewables Americas president Molly Morris said: “Commercial viability is fundamental for ambitious projects of this size and scale.
“The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward.
“We will continue to closely engage our many community partners across the state. As evidenced by the progress at the South Brooklyn Marine Terminal, our offshore wind activity is ready to generate union jobs and significant economic activity in New York.”
According to Equinor and BP, offshore wind can be a crucial part of the energy mix and is committed to maintaining substantial contributions to the state and local economy.
The Empire Wind 1 and Empire Wind 2 projects recently reached a key federal permitting milestone, having received the federal Record of Decision from BOEM
Last month, Empire Wind 1 also received its Article VII Certificate of Environmental Compatibility and Public Need in New York.
BP offshore wind Americas president Joshua Weinstein said: “BP is supportive of NYSERDA’s leadership and commitment to offshore wind, which we believe is a critical part of New York State’s and America’s clean energy future.
“Offshore wind can deliver reliable renewable power as well as economic benefits to the state and its communities.”