Equinor, BP Seal Deal with New York for Large Scale Offshore Wind Projects
Norway-based energy company Equinor and energy giant bp announced the finalization of the Purchase and Sale Agreements (PSAs) with the New York State Energy Research and Development Authority (NYSERDA) for Empire Wind 2 and Beacon Wind 1 projects, which will see the companies develop and supply offshore wind energy to the state in one of the largest renewable energy procurements to date in the U.S.
Siri Espedal Kindem, President of Equinor Wind US, said:
“Today’s announcement sets Equinor and bp on the path to provide over 3.3 gigawatts (GW) of offshore wind power for New York. It also offers a large-scale, tangible demonstration of the incredible economic activity and carbon reduction potential being driven by New York’s green energy transition. We are proud to help lead the growth of this exciting industry in New York.”
The announcement concludes the contracts awarded to Equinor and bp in January 2021. Under the agreement, the companies will provide 1,260 MW of renewable offshore wind power from Empire Wind 2, and another 1,230 MW of power from Beacon Wind 1, in addition to an existing commitment to provide 816 MW of power from Empire Wind 1. The companies will also partner with the State to transform two New York ports – the South Brooklyn Marine Terminal (SBMT) and the Port of Albany – into large-scale offshore wind working industrial facilities that position New York to become an offshore wind industry hub.
Felipe Arbelaez, bp’s Senior Vice President for zero carbon energy, said:
“These are world class assets and we are moving quickly and safely to get them producing the energy people need in the way that they want it – all the while creating positive ripple effects for the surrounding communities and industry. Today’s milestone is a critical step forward and we will continue to work hard to deliver the Empire Wind and Beacon Wind projects, providing clean energy and stable returns for decades to come.”
Equinor and bp launched a strategic partnership in September 2020 for the development of offshore wind projects in the US, including the development of existing offshore wind leases on the US East coast, and the joint pursuit of further offshore wind opportunities. The deal included a $1.1 billion payment by bp for a 50% interest in Equinor’s Empire Wind and Beacon Wind assets.
Doreen M. Harris, President and CEO, NYSERDA, said:
“Offshore wind is bringing unprecedented investment to New York State, and we are proud to further cement ourselves as the offshore wind hub of the nation. Meeting our nation-leading offshore wind goal of 9,000 megawatts by 2035 will be an essential economic driver for the state, and these projects will help transform our energy system while providing thousands of family-sustaining jobs to bolster our growing green economy.”