European energy companies Equinor and bp terminated their agreement to sell power to New York state from the Empire Wind 2 offshore wind farm, citing rising inflation and costs, Equinor announced on Thursday.
‘The decision recognizes commercial conditions driven by inflation, interest rates and supply chain disruptions that prevented Empire Wind 2’s existing agreement from being viable,’ the company explained.
Equinor and bp believe offshore wind can be an important part of the energy mix and are committed to maintaining substantial contributions to the state and local economy.
‘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,’ said Molly Morris, president of Equinor Renewables Americas.
‘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,’ she said.
