Economic Factors Lead to Project Halt
European-based BP and Equinor have unexpectedly halted the Empire Wind 2 project, comprising 147 offshore wind turbines near New York. Citing “inflation, interest rates, and supply chain disruptions,” the joint venture decided to terminate the agreement signed in 2022.
Pricing Dispute and Contract Termination
The initial agreement set a price of $107.50 per megawatt-hour, but economic shifts prompted BP and Equinor to request an increase to $177.84/MWh. The proposal was denied, resulting in the termination of the contract and a pause in the project.
Local Celebrations Amid Environmental Concerns
Local communities, activists, and lawmakers are celebrating the pause, as they link offshore wind activities to whale and dolphin deaths. Equinor, however, emphasizes the halt as a strategic “reset,” leaving the possibility of moving forward with the Empire Wind 2 project.
New York’s Commitment to Renewable Energy
While the Empire Wind 2 project remains on hold, New York continues its commitment to renewable energy. Governor Kathy Hochul’s 10-Point Action Plan includes three new offshore wind projects and 23 land-based large-scale renewable energy projects, with a focus on achieving 70% renewable electricity by 2030.
Source：dailymail.co.uk
