Norwegian energy company Equinor has expressed concerns over potential multi-billion-dollar losses following the US government’s decision to halt construction of its Empire Wind project near New York.
The company is seeking to reverse what it deems an unlawful order, according to a report by Reuters.
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The Empire project was approved under the Biden administration in 2023. But the Trump administration, through Interior Secretary Doug Burgum, announced on 16 April 2025 that the Empire Wind development had not undergone sufficient environmental analysis prior to approval.
The project was approximately 30% complete when the construction was stopped.
The company plans to engage with US government officials to discuss the reversal of the halt and is considering legal options.
Equinor has invested $2.5bn in the project thus far, with additional financial commitments, including guarantees and termination fees, ranging from $1.5bn to $2.0bn. These figures do not account for tax and other potential limiting factors.
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By GlobalDataEquinor CEO Anders Opedal indicated that the company might record an impairment loss in the second quarter of 2025 due to the US government’s directive.
“An impairment would of course only be on the book value,” Opedal stated.
The announcement has caused unease within the offshore wind industry, casting doubt on the security of fully permitted developments.
“We have invested in Empire Wind after obtaining all necessary approvals, and the order to halt work now is unprecedented and in our view unlawful,” Opedal added.
Equinor secured the federal lease for the project’s site in 2017, during Trump’s previous term.
Despite Trump ordering a review of offshore wind permitting and leasing on the first day of his second term, analysts had considered fully permitted projects to be secure.
German offshore wind developer RWE has also paused its US projects due to the Trump administration’s actions.
The Empire Wind project, with a planned capacity of 810MW, aimed to supply electricity to 500,000 homes annually and was expected to commence operations in 2027.
In another development, Equinor and Polish utility Polenergia have recently received the final environmental decision for the Bałtyk 1 offshore wind farm project in the Polish Baltic Sea, a significant step towards establishing what could be the largest offshore wind farm in the region.
