Equinor’s Empire Wind project had been challenged by New Jersey congressmen and questioned by Norwegian investors. I suspect that Equinor saw the writing on the wall.
Posts Tagged ‘Empire Wind’
Secretary Burgum directs BOEM to order Empire Wind to cease construction
Posted in energy policy, Offshore Wind, tagged BOEM, Congressman Chris Smith, Congressman Van Drew, Empire Wind, Equinor, Secretary Burgum on April 16, 2025| Leave a Comment »
Equinor’s Empire Wind 1 project questioned by US congressman and Norwegian investors
Posted in Norway, Offshore Energy - General, Offshore Wind, tagged Congressman Chris Smith, Empire Wind, Equinor, poor return, Secretary Burgum, wind investments on April 4, 2025| Leave a Comment »
A letter from Congressman Chris Smith (NJ) to Sec. Burgum is attached. Excerpt:
I am writing to advise you that Equinor, a Norwegian Energy multinational is planning to move forward with construction of its Empire Wind 1 project off the coast of New Jersey and New York as early as this April.
This is an alarming development and should not be allowed before the comprehensive review of offshore wind ordered by President Trump’s January 20th executive order is completed. The executive order states that the assessment is needed to review the many shortcomings of the Federal wind leasing process including, “potential inadequacies in various environmental reviews required by the National Environmental Policy Act.”
Meanwhile, Norwegian investors have expressed dissatisfaction with Equinor’s renewable energy ventures. This Norwegian article raises concerns about Empire Wind 1, saying the project “could become a new industrial scandal.”
Based on the respective financial performance of oil producers, I think it’s fair to say that investors aren’t attracted to those companies because of their wind projects.
Equinor taking heat from Norwegian investors
Posted in climate, Norway, Offshore Energy - General, Offshore Wind, tagged Empire Wind, Equinor, green agenda, Norway, Offshore Wind, Orsted on January 22, 2025| Leave a Comment »
Equinor’s investment in Orsted and their Empire Wind project in the US Atlantic are featured in this DN article (translated to English). Excerpts follow:
Equinor’s investment of over 26 billion kroner in the Danish wind power company Ørsted has so far been a financial disaster – and now it’s going from bad to worse.
“We are very negative about the whole green initiative, as the return on the investments they make is far too low. When they also buy minority stakes in other green companies that we cannot count on, such as Ørsted, it means that we would rather own other oil companies.” Gaute Eie, Eika Kapitalforvaltning
The market has long been concerned that Equinor will throw money at renewable projects with low or no profitability.
In a recent note, Pareto analysts Tom Erik Kristiansen and Olav Haugerud point out that the Ørsted writedown does not bode well for Equinor’s own US projects either. They foresee a writedown of up to $1.1 billion, given that Equinor faces the same type of challenges as Ørsted.
Eie believes there is no reason why Equinor in particular should have a green initiative:
Aker BP is not doing green, Vår Energi is not doing green, and all the big oil companies are going back on this. Then we’ll see if Equinor has the guts to buy even more Ørsted shares, because now it’s 35 percent cheaper. If they do, we’ll have even fewer Equinor shares.
Sissener believes Equinor should rather focus on dividends and concentrate on oil and gas projects.
– We generally stay away from companies where the state is a major owner, because there you have to be so politically correct all the time. What we need are shareholder-friendly board representatives who know how to run a business and maintain control. In a broader perspective, this helps to destroy trust in Norwegian business.
More woes for offshore wind
Posted in climate, energy policy, Offshore Wind, tagged Beacon Wind, bp, Empire Wind, Equinor, rate increase on September 5, 2023| Leave a Comment »
In the wake of the disappointing Gulf of Mexico wind sale and Orsted’s recent financial announcement, Equinor and bp have requested a massive increase in the price of electricity to be generated at Empire Wind 1, Empire Wind 2, and Beacon Wind (see map above).
According to the New York State Energy Research and Development Authority, this would result in an average 54% price hike across their portfolio. The strike prices would rise from $118.38 to $159.64/MWh for Empire Wind 1, from $107.50 to $177.84/MWh for Empire Wind 2, and from $118.00 to $190.82/MWh for Beacon Wind.
Bud's Offshore Energy (BOE) 