New York State has conditionally awarded two offshore wind initiatives, Equinor’s 810-megawatt (MW) Empire Wind 1 and Orsted’s and Eversource’s 924-MW Dawn Wind, in its fourth offshore wind solicitation spherical.
The initiatives, totaling over 1,700 MW of unpolluted vitality, would be the largest energy technology initiatives within the state in over 35 years as soon as they enter operation in 2026, and can proceed progress in direction of achievement of the state’s Local weather Management and Group Safety Act purpose to develop 9,000 MW of offshore wind vitality by 2035, in keeping with a information launch from the New York State Power Analysis and Growth Authority (NYSERDA). The awards are conditional on profitable contract execution.
Empire Wind I, situated 15 miles off New York’s shore, and Dawn Wind, situated greater than 30 miles east of the japanese level of Lengthy Island, have already accomplished most federal and state allowing milestones, in keeping with the discharge. Empire Wind I in February obtained closing approval of its building and operations plan from the Bureau of Ocean Power Administration (BOEM). Each initiatives are anticipated to ramp up building exercise this 12 months.
- Advertisement -
“I promised to make New York a spot for the renewable vitality business to do enterprise, and we’re delivering on that promise,” New York Governor Kathy Hochul mentioned. “Offshore wind is foundational to our battle in opposition to local weather change, and these awards display our nationwide management to advance a zero-emissions electrical grid at one of the best worth to New Yorkers.”
Equinor and NYSERDA will now negotiate an Offshore Wind Renewable Power Certificates (OREC) buy and sale settlement, and the corporate expects contract execution within the second quarter.
“At the moment’s award is a crucial milestone in our continued efforts to maximise worth creation from Empire Wind 1, at present one of many largest and most mature renewables initiatives within the US”, Equinor Renewables Govt Vice President Pål Eitrheim mentioned in an announcement. “The award represents an necessary contribution to New York’s local weather ambitions from a large-scale challenge in a development market that has demonstrated a robust dedication to offshore wind. We’re working diligently to convey the challenge to an funding choice throughout the third quarter of this 12 months. With using challenge financing, we at present count on our US East Coast offshore wind investments to ship full-cycle nominal fairness returns throughout the vary of 12-16 %. We intend to farm right down to a brand new accomplice on the proper time to additional improve worth and cut back our publicity”.
Following a closing funding choice anticipated in mid-2024, Equinor mentioned it plans to make use of challenge financing, with monetary shut anticipated by the tip of 2024. The corporate additionally intends to usher in a accomplice to reinforce worth and cut back possession share and publicity.
Equinor in January introduced a swap transaction with BP plc, beneath which Equinor will take full possession of the Empire Wind lease and initiatives and BP will take full possession of the Beacon Wind lease and initiatives. The transaction is topic to regulatory approval and shutting of the transaction is anticipated within the second or third quarter, in keeping with the assertion.
Dawn Wind will start the following steps of finalizing agreements with NYSERDA on the OREC contract, Orsted mentioned in a separate assertion. The challenge is anticipated to be operational in 2026 and can start the total scope of building as soon as it has obtained all federal permits, slated for this summer season. The ultimate funding choice on Dawn Wind is anticipated to be made within the second quarter.
Ørsted will purchase Eversource’s 50 % possession share in Dawn Wind, turning into the only proprietor of Dawn Wind, topic to signing of an OREC contract with NYSERDA, finalization of acquisition agreements, receipt of the federal building and operations plan, and related regulatory approvals. Eversource will stay contracted to steer the challenge’s onshore building, in keeping with the assertion.
David Hardy, Group EVP and CEO Americas at Orsted, mentioned, “We’re able to construct on the inspiration we’ve laid with New York’s first offshore wind challenge, South Fork Wind, whereas delivering considerably extra jobs, native provide chain and neighborhood investments, and renewable energy for New Yorkers”.
Eversource Power Chairman, President and CEO Joe Nolan mentioned, “Dawn Wind is one other main step ahead for our shared clear vitality future and can ship vital new investments to New York State, together with the creation of lots of of native union jobs constructing the challenge’s onshore transmission system. We’re excited to get shovels within the floor and start the total scope of onshore building”.
To contact the writer, electronic mail rocky.teodoro@rigzone.com
