Equinor closes Empire Wind 1 financing and Ørsted stake acquisition

In late December, Norwegian energy company Equinor reached significant watersheds on both sides of the pond: in New York, the company’s Empire Wind 1 project secured financing of $3 billion; in Denmark, their acquisition of a stake in Ørsted closed.

Equinor’s Empire Wind 1 project in the US has secured a project financing package of over $3 billion with financial close reached at the end of December 2024.

Located 25-50km southeast of Long Island and spanning 32,000ha, Empire Wind 1 will power 500,000 New York homes. With a contracted capacity of 810MW, Empire Wind 1 will be the first offshore wind project to connect into the New York city grid.

The redevelopment of the South Brooklyn Marine Terminal and construction of Empire Wind 1 will create more than 1,000 union jobs in the construction phase.

Expected total capital investments, including fees for the use of the South Brooklyn Marine Terminal, are approximately $5 billion.

Equinor acquired the Empire Wind lease area in 2017, in June 2024 announcing the execution of the Purchase and Sale Agreement with the New York State Energy Research and Development Authority for Empire Wind 1 power for 25 years at a strike price of $155/MWh.

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Equinor intends to farm down in the Empire Wind 1 project to a new partner to further enhance value and reduce exposure.

Commenting in a release was Jens Økland, acting executive vice president for Renewables in Equinor: “This is an important milestone for Equinor, in line with our plan to enhance value and reduce exposure in the Empire Wind 1 project. As we now enter full execution mode, we continue our efforts to increase robustness and value-creation in the project.

“Today's financial close maintains our momentum toward bringing a significant source of power to the grid. Empire Wind 1 will strengthen US energy security, build economic growth and fuel a new American supply chain,” added Molly Morris, senior vice president for Renewables in Americas.

“Our redevelopment of the South Brooklyn Marine Terminal is already putting more than 1,000 people to work. Equinor is proud to play a part in advancing domestic energy solutions safely, efficiently, and for the long term.”

Construction on Empire Wind 1 has already begun. The project is expected to reach its commercial operation date in 2027.

Equinor Ørsted acquisition

The Norwegian company’s financial close in the US came a week after announcing an acquisition milestone in Denmark.

A week prior, Equinor closed their acquisition of 10% in Danish energy company Ørsted, initially announced in October 2024.

The transaction establishes Equinor as the second largest shareholder in Ørsted, after the Danish State, which holds a controlling stake in the company.

At the time of the announcement, Anders Opedal, CEO of Equinor, commented in a release: “Equinor has a long-term perspective and will be a supportive owner in Ørsted.

“This is a counter-cyclical investment in a leading developer, and a premium portfolio of operating offshore wind assets. The exposure to producing assets complements Equinor’s operated offshore wind portfolio of large projects under development.

“This investment is in line with Equinor’s strategy of value-driven growth in renewables. The offshore wind industry is currently facing a set of challenges, but we remain confident in the long-term outlook for the sector, and the crucial role offshore wind will play in the energy transition.”

As of October, Ørsted has a net renewable generation capacity of around 10.4GW and a gross portfolio of offshore wind projects in execution of around 7GW. The company’s ambition is to achieve a gross installed renewable capacity of around 35 to 38GW by 2030.