The swap transaction is expected to close in the second or third quarter of 2024. Credit: Equinor.

Norwegian oil and gas company Equinor and BP have agreed a swap transaction to reorganise their joint ownership of offshore wind projects in the US.

Equinor will take full ownership of the Empire Wind lease and projects through Empire Offshore Wind Holdings, and will also take over bp’s 50% share of the South Brooklyn marine terminal lease.

UK-based oil and gas giant bp will assume full ownership and operational control of the Beacon Wind lease and projects through Beacon Wind Holdings.

It will also own the associated project company that holds the Astoria Gateway for Renewable Energy site.

The transaction will close in the second or third quarter of 2024.

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“Building on our experience as a leading player in US offshore wind, we now take full ownership of a mature, large-scale offshore wind project in a key energy market, where we have built a strong local organisation.”

Equinor secured the Empire Wind lease in 2017. It is being developed in two projects; Empire Wind 1 with 810MW of capacity and Empire Wind 2 with a potential 1.2GW of capacity.

Equinor submitted a bid for the Empire Wind 1 project in New York’s fourth offshore wind solicitation round on 25 January 2024.

Equinor and the New York State Energy Research and Development Authority have agreed to terminate the offshore wind renewable energy certificate purchase and sale agreement for the Beacon Wind 1 project.

Both Empire Wind 1 and 2 have been affected by industry-wide macroeconomic factors. Empire Wind 1 is competing in the NY4 solicitation (the latest round of proposals from offshore wind developers to deliver offshore wind energy to New York State). At the same time, Empire Wind 2 will be prepared for future rounds.

The project is expected to deliver a real base project return towards the lower end of the 4–8% range for renewable projects.

Equinor Americas renewables senior vice-president Molly Morris stated: “Empire Wind 1 is ready to deliver on New York’s climate and energy goals, with numerous permits and supplier contracts secured.

“The strong commitment by the state to develop this industry is reflected in the NY4 rapid rebid offering, providing an opportunity to improve value creation for the project.”