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Empire Offshore Wind cancels Seatrium contract

Empire Offshore Wind, a joint venture between Norwegian state company, Equinor, and energy major bp, have pulled out of a wind farm contract at Seatrium valued at more than $250 million.

Paul Bartlett, Correspondent

January 4, 2024

1 Min Read
wind turbines at sea
Photo: Unsplash

The 1,260MW offshore substation platform was a key component in Empire Wind 2 which has now been cancelled following an agreement between the Empire Offshore Wind partners Equinor and bp, and the New York State Energy Research and Development Authority (NYSERDA).

The agreement reflects changed economic circumstances on an industry-wide scale, the partners said, adding that the decision recognises commercial conditions driven by inflation, interest rates, and supply chain disruptions that prevented viable development of the wind project. Empire Wind 1, on which construction work began in the fourth quarter of 2023, remains unaffected and continues as planned.

However, cancellation of the project, off the coast of Long Island, is yet another blow to offshore wind development in the US. It comes after developers showed virtually no interest in the US Bureau of Energy Management’s auction of offshore acreage in the Gulf of Mexico last August.

Other contracts have also been cancelled recently including Commonwealth Wind, Park City Wind, and SouthCoast Wind because developers have been unable to finance the projects.  

Seatrium said that cancellation of the contract is not expected to have a material financial impact on the group’s earnings per share and net tangible asset per share in the current financial year. Construction work had been expected to begin in June 2024.

Related:US offshore wind – two steps back and big step forward

 

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About the Author

Paul Bartlett

Correspondent

UK-based Paul Bartlett is a maritime journalist and consultant with over four decades of experience in international shipping, including ship leasing, project finance and financial due diligence procedures.

Paul is a former Editor of Seatrade magazine, which later became Seatrade Maritime Review, and has contributed to a range of Seatrade publications over the years including Seatrade’s Green Guide, a publication investigating early developments in maritime sustainability initiatives, and Middle East Workboats and Offshore Marine, focusing on the vibrant market for such vessels across that region.

In 2002, Paul set up PB Marine Consulting Ltd and has worked on a variety of consultancy projects during the last two decades. He has also contributed regular articles on the maritime sector for a range of shipping publications and online services in Europe, Asia, and the US.

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