Equinor has announced the successful execution of the Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) for the renewable power generated by the Empire Wind 1 offshore wind project.
This agreement follows NYSERDA’s February announcement naming Equinor as a conditional winner in New York’s fourth offshore wind solicitation.
Molly Morris, president of Equinor Renewables Americas, expressed gratitude to NYSERDA and the state of New York for their commitment to the offshore wind industry and broader renewable energy targets. She emphasized the significance of Empire Wind 1 for Equinor and hailed the PSA agreement as a critical milestone in ensuring a robust path forward towards delivering first power.
Onshore construction is currently underway at the South Brooklyn Marine Terminal, and Empire Wind 1 aims to become America’s first offshore wind project to connect directly to the New York City grid, targeting first power delivery by late 2026.
With a strike price of $155.00 per MW/h, Empire Wind 1 is expected to deliver forward-looking real base project returns within the guided range for renewable projects. Equinor plans to use project financing following a final investment decision, with financial close anticipated by the end of 2024. Additionally, Equinor intends to bring in a partner to reduce financial exposure.
The signing of the offtake agreement signifies significant progress for the 810 MW Empire Wind 1 project, which aims to power 500,000 New York homes with reliable, renewable energy. It is expected to generate over 1,000 union jobs during the construction phase, contribute to building a domestic supply chain, and provide an economic boost to communities while advancing the offshore wind industry in New York and along the East Coast.
An important aspect of Empire Wind 1 is the redevelopment of the South Brooklyn Marine Terminal (SBMT) in Sunset Park, Brooklyn. SBMT will be rebuilt using union labor and will serve as the primary staging and assembly area for Empire Wind 1. Additionally, the port will become a central hub for future offshore wind projects as the industry grows along the Northeast seaboard in the coming decades.
Doreen M. Harris, President and CEO of NYSERDA, highlighted the critical role of major renewable energy infrastructure projects like Empire Wind 1 in achieving New York’s climate goals. She commended Equinor for its ongoing commitment to investing in New York’s green economy and helping to establish the state’s offshore wind industry.
As part of the agreement, Empire Wind 1 will provide various economic benefits to support economic development in New York City and across the state. This includes increased funding for workforce and community development, with significant investments already made in the Offshore Wind Learning Center, the Offshore Wind Innovation Hub, and the Offshore Wind Ecosystem Fund. Additionally, Empire Wind 1 has committed to supporting businesses owned by minorities, women (MWBEs), and service-disabled veterans (SDVOBs), primarily focused on onshore development at the South Brooklyn Marine Terminal.
