Equinor, a leading energy company, has announced the execution of a Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) for the renewable energy produced by the Empire Wind 1 offshore wind project.
The agreement comes after NYSERDA’s February announcement selecting Equinor as a conditional winner in New York’s fourth offshore wind solicitation.
Empire Wind 1 is set to be the first offshore wind project to connect directly to the New York City grid, with a target to deliver first power by the end of 2026. Onshore construction at the South Brooklyn Marine Terminal is already in progress.
“Empire Wind 1 is a defining project for Equinor and the PSA agreement is an important milestone in de-risking and ensuring a robust path forward as we work toward delivering first power,” said Molly Morris, president of Equinor Renewables Americas.
Empire Wind 1 in January submitted a revised bid to supply power to New York state as part of a solicitation that allowed companies to exit old contracts and re-offer at higher prices.
The PSA comes with a strike price of $155.00 per MW/h, which Equinor described as 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. Equinor also intends to bring in a partner to reduce financial exposure.
The Empire Wind 1 project, boasting a capacity of 810 MW, is expected to generate over 1,000 union jobs during the construction phase and contribute to the establishment of a domestic supply chain.
The project will notably revamp the South Brooklyn Marine Terminal (SBMT) in Sunset Park, Brooklyn. The SBMT will serve as the primary staging and assembly area for Empire Wind 1. The port is expected to become a central hub for future offshore wind projects as the industry expands in the coming decades.
In addition, Empire Wind 1 is set to provide a range of economic benefits across the state, including increased funding for workforce and community development. Millions of dollars will be spent on businesses owned by minorities, women, and service-disabled veterans, mostly focusing on onshore development at the South Brooklyn Marine Terminal.
“Major renewable energy infrastructure projects such as Empire Wind 1 are a crucial component in reaching toward New York’s climate goals,” said New York State Energy Research and Development Authority President and CEO Doreen M. Harris. ”NYSERDA applauds Equinor for its ongoing commitment to investing in New York’s?green economy, including the redevelopment of South Brooklyn Marine Terminal, and helping to stand-up New York’s offshore wind industry one significant milestone at a time.”
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