Construction on a massive wind energy project, previously touted by the Biden administration as an example of positive “BiDenomics,” has been halted, with developers citing “inflation, interest rates and supply chain disruptions.” Energy developers BP and Equinor announced Wednesday.
BP and Equinor announced that they have canceled a project called Empire Wind 2 that was to be built off the coast of New York.
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The press release states that the companies have reached an agreement with the New York State Energy Research and Development Authority (NYSERDA) to terminate the Empire Wind 2 Offshore Wind Renewable Energy Certificate (OREC).
“This agreement reflects the changed economic conditions at an industry-wide scale…This decision was driven by inflation, interest rates and supply chain disruptions that prevented implementation of Empire Wind 2's existing OREC agreement. We are aware of the commercial terms,” Equinor said.
Molly Morris, president of Equinor Renewables Americas, said in a statement that the company is open to more economically viable projects in the future.
“For an ambitious project of this size and scale, commercial feasibility is fundamental. The Empire Wind 2 decision provides us with an opportunity to reset and develop an even stronger and more robust project going forward. ” said Morris. “We continue to work closely with our many community partners across the state.”
The Department of the Interior (DOI) and Department of Energy (DOE) both approved the project in November, with DOI praising President Joe Biden and calling Empire Wind 1 and 2 a success of “Bidenomics.”
“Under President Biden's leadership, America's offshore wind industry continues to rapidly expand, creating good-paying union jobs across manufacturing, shipbuilding, and construction sectors,” said Secretary of the Interior Deb Haaland. said. Said on November 21st press release.
Haaland added that the project's approval “represents significant progress toward the administration's clean energy goals,” and that the department will “benefit local communities, strengthen our nation's energy security, and combat climate change.” We will continue to expand clean energy development in this way.” ”
U.S. Secretary of the Interior Deb Haaland testifies at the Senate Energy and Natural Resources Hearing on May 2, 2023 in Washington, DC. (Kevin Dietsch/Getty Images)
The DOI also boasted in its announcement that “Bidenomics and the President's investment policy in the United States are growing the U.S. economy from the middle out to the bottom up.”
The agency also said the Empire Wind project supports Biden's green energy goals.
Just six weeks after approval, Empire Wind 2 failed due to economics touted by the Biden administration.
Joshua Weinstein, BP's president of offshore wind in the Americas, also issued a statement acknowledging the failure.
“BP supports NYSERDA's leadership and commitment to offshore wind, which we believe is an important part of New York State's and America's clean energy future,” Weinstein said. Stated. “Offshore wind can provide economic benefits as well as reliable renewable electricity for the state and its communities.”
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The termination also comes on the heels of energy company Orsted canceling its Biden-backed projects Ocean Wind 1 and Ocean Wind 2 off the coast of New Jersey.
“Macroeconomic factors have changed dramatically in the short term, with high inflation, rising interest rates and supply chain bottlenecks impacting our long-term capital investment,” said Orsted CEO, Americas. David Hardy said. Said In an October press release. “As a result, we have no choice but to cancel the development of Ocean Wind 1 and Ocean Wind 2, especially as New Jersey is poised to become a hub for offshore wind energy in the United States and the world. I am very sorry that we had to make this decision.”
Empire Wind 2 was expected to have a power generation capacity of 1,260 megawatts.
Neither BP nor Equinor have provided recent updates on the status of Empire Wind 1.
