Norwegian state-owned energy firm Equinor has confirmed it is complying with a Trump administration order to immediately halt offshore construction of its Empire Wind 1 project near New York, a move that has sent shockwaves through the U.S. offshore wind sector.
The directive came from U.S. Interior Secretary Doug Burgum, who issued the halt-work order, citing insufficient environmental analysis during the project’s approval process under the previous administration. The suspension affects all offshore activities for Empire Wind 1, which had already secured all required federal and state permits and is currently under construction.
The order casts uncertainty over the future of one of the largest offshore wind developments in the United States. It also raises broader concerns in the energy sector about regulatory stability. Despite being fully permitted and under active development, the project is now paused pending further review.
Research from consultancy ClearView Energy Partners reveals that BOEM took 880 days from issuing its notice of intent to completing the project’s environmental review — just below the 937-day average for such approvals.
In a statement, Equinor said it is “considering its legal remedies, including appealing the order,” and that it is “engaging with relevant authorities to clarify this matter.” Immediate steps have been taken by Empire and its contractors to safely suspend offshore marine activities, ensuring the safety of workers and environmental protections.
The Empire Wind 1 project is being developed through a contract with the New York State Energy Research and Development Authority (NYSERDA). The project is expected to deliver clean electricity to 500,000 homes across New York. Its construction has already created over 1,500 U.S. jobs.
As of March 31, 2025, Empire Wind had a gross book value of around USD 2.5 billion, including assets such as the South Brooklyn Marine Terminal. A total of USD 1.5 billion had been drawn under the project’s finance term loan facility. In the event of a complete project termination, these funds would need to be repaid from equity commitments, with Equinor US Holdings Inc. guaranteeing the repayment.
A complete stop could also trigger significant termination fees to suppliers and contractors. Empire Offshore Wind LLC, the joint venture entity managing the project, has not disclosed an estimate of these potential additional costs.
The halt-work order will be formally reported as a subsequent event in Equinor’s Q1 2025 financial results.
The Trump administration’s move is part of a broader push to roll back support for offshore wind. On his first day back in office, President Trump signed an executive order suspending all new leasing for offshore wind projects in federal waters, citing concerns over cost and potential harm to marine wildlife.
The Empire Wind project was originally leased in 2017 under the federal offshore wind program. Despite having cleared the complex permitting gauntlet and secured long-term power agreements, the project now faces an uncertain future. Industry analysts warn that the decision could have a chilling effect on the broader U.S. offshore wind sector, which currently has only three projects under active construction.
With billions of dollars already invested and project finance commitments on the line, Equinor is now assessing the legal and financial consequences of the halt, and how to move forward.
