Credit Implications of the Bureau of Ocean Energy Management’s Order to Halt Construction on Empire Wind 1
On April 16, 2025, the U.S. Bureau of Ocean Energy Management notified Empire Wind 1 (the Project; an offshore wind project expected to have 810 megawatts of capacity upon entering commercial operation) to halt construction with the objective of reviewing permits that were previously approved.
Key highlights include the following:
— In the event the Project is canceled, it is likely that the implied equity commitment will pay down the debt already drawn.
— If the Project only experiences schedule delays and/or cost escalations, Equinor Offshore Wind LLC could litigate for compensation to partly recover delay costs.
“We believe this regulatory risk weighs negatively on the credit profiles of offshore wind projects currently in various stages of construction in the U.S.,” said Gaurav Purohit, Vice President, European Corporate Ratings, Asset Finance.
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The post Credit Implications of the Bureau of Ocean Energy Management’s Order to Halt Construction on Empire Wind 1 first appeared on Informed Infrastructure.
On April 16, 2025, the U.S. Bureau of Ocean Energy Management notified Empire Wind 1 (the Project; an offshore wind project expected to have 810 megawatts of capacity upon entering commercial operation) to halt construction with the objective of reviewing permits that were previously approved. Key highlights include the following: — In the event the…