Equinor ASA has obtained approval from the USA Bureau of Ocean Power Administration (BOEM) to proceed with the development of an 816-megawatt wind energy venture offshore New Jersey and New York, the Inside Division sub-agency mentioned.
“The authorized plan consists of building and operation of two offshore wind services, often called Empire Wind 1 and Empire Wind 2”, the BOEM mentioned in a information launch.
“Collectively these initiatives would have a complete capability of two,076 megawatts of fresh, renewable vitality that BOEM estimates might energy greater than 700,000 houses annually”, it added.
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Early this yr Equinor signed an settlement to take over full possession of Empire Wind in a swap transaction with associate BP PLC involving two costs-hit offshore wind initiatives.
Equinor canceled an influence provide settlement with New York state for the Beacon Wind venture and entered a deal to totally switch the lease to associate BP in change for the latter’s stake in Empire Wind, the European vitality majors mentioned in separate press releases January 25.
Norway’s majority-state-owned Equinor and British competitor BP are 50-50 joint venturers in each leases. The swap transaction now restructures possession of the leases for Beacon Wind, which spans Massachusetts and New York, and Empire Wind.
“Beneath the settlement, Equinor will take one hundred pc possession of Empire Offshore Wind Holdings LLC”, Equinor mentioned. The settlement additionally gives for Equinor’s takeover of BP’s 50 % possession of the South Brooklyn Marine Terminal wind venture, which was agreed on by the 2 and the state of New York in 2022. The terminal transformation venture will function an interconnection station for each Beacon Wind and Empire Wind.
“BP will take over Beacon Wind Holdings LLC and the related venture firm that holds the Astoria Gateway for Renewable Power web site and can change into the operator of the Beacon Wind initiatives”, Equinor added. The Beacon Wind three way partnership final yr purchased the positioning of the Astoria Fuel Generators with a plan to remodel it right into a renewable vitality converter station below a venture known as Astoria Gateway for Renewable Power.
“The settlement gives Equinor and bp with the pliability to pursue their respective priorities below their company methods”, Equinor mentioned.
Earlier in January Equinor introduced an settlement has been reached with New York’s vitality regulator to terminate an earlier settlement for energy provide from Empire Wind 2, citing rising prices and provide chain disruptions.
“This [termination] settlement displays modified financial circumstances on an industry-wide scale and repositions an already mature venture to proceed improvement in anticipation of recent offtake alternatives”, Equinor mentioned in a media launch January 4.
“The choice acknowledges business circumstances pushed by inflation, rates of interest and provide chain disruptions that prevented Empire Wind 2’s current OREC [Offshore Wind Renewable Energy Certificate] settlement from being viable”.
Following the swap settlement with BP, Equinor mentioned a bid had been submitted for Empire Wind 1 in New York’s fourth offshore wind solicitation spherical.
With Empire Wind cleared to proceed for building the BOEM has now authorized first six commercial-scale offshore wind initiatives within the nation.
“This venture represents a significant milestone in our efforts to increase clear vitality manufacturing and fight local weather change”, BOEM Director Elizabeth Klein mentioned in a press release. “The Biden-Harris administration is dedicated to advancing offshore wind initiatives like Empire Wind to create jobs, drive financial development, and lower dangerous local weather air pollution”.
The BOEM has up to now held 4 offshore wind lease auctions, all final yr. The gross sales attracted almost $5.5 billion in excessive bids, providing initiatives in Gulf of Mexico and Pacific waters, in addition to New Jersey and New York.
On March 29, 2021, the Power Division introduced targets of 30 gigawatts of offshore wind deployment by 2030 towards no less than 110 GW by 2050. On September 22, 2022, the Biden administration introduced a goal of 15 GW for floating wind farms by 2035.
To contact the writer, e-mail jov.onsat@rigzone.com
