Equinor Considers Exiting Empire Wind Project Amid Rising Work Order Expenses

Equinor is expressing frustration with the Trump Governance and the Department of the Interior over a halt to its Empire Wind offshore energy initiative. Just a month ago, Secretary Doug Burgum issued a stop work order, claiming that the project’s permitting process was rushed and needed more scrutiny.

Molly Morris, president of Equinor Renewables Americas, shared her concerns in a recent POLITICO interview. She described the situation as “urgent and unsustainable,” noting that they haven’t been able to meet with Burgum for clarification or receive any details about the report questioning their permits. The Department of the Interior has yet to release this report or provide further insights into their decision.

According to Bloomberg on May 12, Equinor’s CEO Anders Opedal and other executives met with Kevin Hassett from the US national Economic Council but left without any positive signals from the administration regarding offshore wind projects.

Morris warned that if things don’t change soon,Equinor might have no choice but to abandon this venture. “We’re still pushing every day for a resolution,” she stated on Monday.

The company emphasizes it spent seven years securing approvals before starting work last year; currently, they claim about 30 percent of construction is complete. While onshore activities continue—like developing cabling and enhancing New York’s South Brooklyn Marine Terminal—the offshore segment was set to kick off when they received notice to halt operations.

The financial impact is notable; Morris mentioned that halting work costs them around $50 million weekly.With 11 vessels idle and over 100 workers ready for deployment this spring, time is running out for them without guidance from Washington.

Total investments in this project have reached approximately $2.7 billion out of an expected $5 billion budget by its operational launch in 2027. as reported at March’s end, Equinor had drawn about $1.5 billion from its financing facility while also guaranteeing equity commitments related to project funding—if forced into full stop mode, they’d face hefty repayments along with potential penalties owed to suppliers.

This issue extends beyond just one project; it raises questions about honoring contracts and safeguarding financial commitments across industries. Other major players like Shell and totalenergies have already pulled back or delayed plans in U.S markets due to similar uncertainties.

During their quarterly earnings call at April’s end, equinor labeled this stop work order as “unlawful” while exploring legal avenues moving forward.
New York state quickly voiced strong opposition against Trump’s directive supporting Equinor’s cause; as then, 17 states alongside D.C., have filed lawsuits challenging his executive order concerning leasing processes tied up in offshore energy projects.