Equinor Awarded Contract for Large-Scale Offshore Wind Farms in New York
Stavanger, Norway - Equinor is increasingly focusing on renewable energies alongside its oil and gas business. The strategic goal of Norway's oil and gas group Equinor is to become a global major player in the field of offshore wind energy. In the U.S. state of New York, the Norwegian oil and gas group has now been awarded the largest offshore wind energy contract in the U.S. to date.
Equinor's total capacity for offshore wind farms in New York rises to 3,300 MW
Equinor has been selected to supply New York State with power from offshore wind farms in one of the largest-ever renewable energy tenders in the United States. Under the contract, Equinor and its new strategic partner BP will build two offshore wind farms, Empire Wind 2, with a capacity of 1,260 megawatts (MW), and Beacon Wind 1, with 1,230 MW. Together with the existing commitment to supply New York with wind power from the 816 MW Empire Wind 1 offshore wind farm, this gives Equinor a total offshore wind capacity of 3,300 MW in New York State.
According to Equinor, the award of the projects is still dependent on the successful conclusion of a contract with the New York State Energy Research and Development Authority (NYSERDA). Under the terms of the agreement, the companies will work with the U.S. state to build large-scale, high-performance offshore wind power industrial structures at New York's South Brooklyn Marine Terminal (SBMT) and Port of Albany. These are expected to make New York a center of the offshore wind industry.
"The U.S. East Coast is one of the most attractive growth markets for offshore wind in the world. The successful bids for Empire Wind 2 and Beacon Wind 1 represent a game-changer for our offshore wind business in the U.S. and underline Equinor’s commitment to be a leading company in the energy transition. These projects will also create value through economies of scale and support our strategic ambition of becoming a global offshore wind major," Equinor CEO Anders Opedal said about the project award.
Equinor sells 1.1 billion US-Dollar stake to BP
Equinor already entered into a strategic partnership with the petroleum company in the field of offshore wind in September 2020 through the sale of 50 percent of its non-operating interests in the Empire Wind and Beacon Wind offshore wind fields to BP. The total price before adjustments is USD 1.1 billion. The aim of the partnership between Equinor and BP is to jointly implement current and also future offshore wind energy projects in the USA. This relates to ground-based and floating offshore wind farms.
Global offshore wind market growing
Equinor is expanding its involvement in renewable energy alongside its oil and gas business, operating offshore wind farms in the UK and Germany. The company commissioned the world's first floating offshore wind farm off the coast of Scotland in 2017 and believes it is well positioned for the future. With the development of the new partnership between Equinor and BP, the two companies aim to further expand collaboration in a market that is forecast to grow to between 600 and 800 gigawatts (GW) globally by 2050
Source: IWR Online, Jan 01 2021