Offshore Wind as a Bargaining Chip? Trump Administration Lifts Construction Halt on Equinor Offshore Wind Farm – Gas Deal in the Background
Münster, Germany – After a roughly five-week halt due to a construction freeze ordered by the U.S. Department of the Interior, Norwegian energy company Equinor can now resume construction of the Empire Wind offshore wind farm in the U.S. state of New York. It remains unclear whether concessions on a major gas project played a decisive role in the U.S. government's change of heart.
Turning Point for Offshore Wind Construction: Empire Wind Gets Green Light from U.S. Interior Department
As the Norwegian energy company has now announced, its subsidiary Empire Offshore Wind LLC (Empire) was informed by the Bureau of Ocean Energy Management (BOEM), part of the U.S. Department of the Interior, that the construction halt on the Empire Wind project has been lifted. This means that construction on the offshore wind farm can resume. According to Equinor, the decision followed intensive discussions with regulatory authorities and representatives from federal, state, and local governments.
Equinor plans to conduct an updated economic assessment of the project in the second quarter. Empire intends to proceed with the scheduled offshore installation work in 2025 and to begin commercial operations in 2027. Together with suppliers and regulators, the company aims to coordinate measures to mitigate the impacts of the construction freeze.
“ I would like to thank President Trump for finding a solution that saves thousands of American jobs and provides for continued investments in energy infrastructure in the U.S. I am grateful to Governor Hochul for her constructive collaboration with the Trump Administration, without which we would not have been able to advance this project and secure energy for 500 000 homes in New York,” said Equinor CEO Anders Opedal, welcoming the U.S. government's change of course.
“I would like to thank the Norwegian Prime Minister Støre and Minister of Finance Stoltenberg for their support at a critical time, and that the Minister of Finance raised the situation with the U.S.administration,” Opedal added.
Offshore Compromise as Door-Opener for Gas Project?
It remains unclear what exactly motivated the Trump administration to lift the construction halt. According to a Reuters report, the U.S. government has reached a compromise with the State of New York on the gas issue, which could pave the way for the revival of previously shelved plans for a gas pipeline. This interpretation is supported by a post on X from U.S. Interior Secretary Doug Burgum, who had originally imposed the construction freeze on Empire Wind. In his post, Burgum expressed his approval of comments allegedly made by Governor Kathy Hochul, suggesting she is now open to advancing key pipeline capacities.
However, Hochul’s own statement, which was publicly released, does not explicitly confirm support for expanding gas pipeline capacities. In that context, Hochul merely reaffirmed in her talks on the Empire Wind offshore project that New York would continue to work with the federal government and private companies on new energy projects that meet the legal requirements under New York law.
Ørsted and Vestas Stocks Rally
While Equinor's shares saw little benefit from the deal with the U.S. government, shares of Ørsted and Vestas surged significantly on Monday. Ørsted topped the RENIXX World renewable energy index with a gain of 17.9 percent to €38.93 (closing price, May 20, 2025, Stuttgart Stock Exchange). The share price of wind turbine manufacturer Vestas, which is set to supply turbines for the Empire Wind offshore wind farm, rose 7.2 percent to €15.12 (closing price, May 20, 2025, Stuttgart Stock Exchange).
Source: IWR Online, 22 May 2025