The challenges in the offshore wind industry are now causing another offshore wind project to falter.
High inflation, high interest rates and supply chain disruptions have led Equinor and BP, which together are behind the 1.26 GW offshore wind project Empire Wind 2 in New York, to terminate the contract with the US authority Nyserda to supply electricity from the offshore wind farm. Equinor said in a press release.
- Commercial sustainability is fundamental for ambitious projects of this size. The Empire Wind 2 decision provides an opportunity to reset and develop a stronger and more robust project going forward, says Molly Morris, Head of Equinor Renewables Americas.
In August, the companies tried to initiate a dialogue with Nyserda about increasing support for the project. It was a dialogue that Ørsted also entered into with the authority for its Sunrise project. However, the requests were rejected, and it is this rejection of higher support that has now led to Equinor and BP terminating the contract with Nyserda.
However, there is still a possibility that the project can be realized. New York has launched a new tender, where, among other things, bids can be made for the projects whose contracts have been terminated.
This allows Equinor and BP to regain the contract with Nyserda at a higher support than the one now cancelled. However, other companies also have the opportunity to bid to build an offshore wind farm in the area.
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