Jul 23, 2025
Equinor reports a $955 million loss on its offshore wind projects in the US.
Norway's Equinor announced on Wednesday that it recorded a $955 million impairment on a U.S. offshore wind project, despite a previous construction ban being lifted by President Trump's administration.
In April, Interior Secretary Doug Burgum criticized former President Biden's administration for inadequate environmental assessments prior to approving the Empire Wind project in New York, ultimately halting it and impacting the offshore wind sector. However, a month later, Burgum lifted the stop-work order in a compromise with the state, which might also lead to the revival of a canceled gas pipeline.
Equinor reported a decrease in net operating income for the second quarter due to the nearly billion-dollar impairment on its U.S. offshore wind initiatives. The company stated that the impairment of $955 million was influenced by regulatory changes that diminished future project synergies and raised tariff exposure. Of this amount, $763 million pertains to the Empire Wind 1/South Brooklyn Marine Terminal project, while the rest is linked to the Empire Wind 2 lease.
Equinor, primarily owned by the Norwegian government, acquired a federal lease for Empire Wind in 2017 during Trump's first term and received investment approval in 2023 under Biden. However, on the first day of his second term in January, Trump initiated a review of offshore wind permits and leases, although many analysts believed that fully-permitted projects would remain secure.
After the recent impairments, the total book value was reported at $2.3 billion. With a planned capacity of 810 megawatts, the project is expected to supply enough electricity for half a million homes annually and aims to begin operations in 2027. Equinor also reported lower core results for the second quarter, as anticipated, due to falling oil prices.
In April, Interior Secretary Doug Burgum criticized former President Biden's administration for inadequate environmental assessments prior to approving the Empire Wind project in New York, ultimately halting it and impacting the offshore wind sector. However, a month later, Burgum lifted the stop-work order in a compromise with the state, which might also lead to the revival of a canceled gas pipeline.
Equinor reported a decrease in net operating income for the second quarter due to the nearly billion-dollar impairment on its U.S. offshore wind initiatives. The company stated that the impairment of $955 million was influenced by regulatory changes that diminished future project synergies and raised tariff exposure. Of this amount, $763 million pertains to the Empire Wind 1/South Brooklyn Marine Terminal project, while the rest is linked to the Empire Wind 2 lease.
Equinor, primarily owned by the Norwegian government, acquired a federal lease for Empire Wind in 2017 during Trump's first term and received investment approval in 2023 under Biden. However, on the first day of his second term in January, Trump initiated a review of offshore wind permits and leases, although many analysts believed that fully-permitted projects would remain secure.
After the recent impairments, the total book value was reported at $2.3 billion. With a planned capacity of 810 megawatts, the project is expected to supply enough electricity for half a million homes annually and aims to begin operations in 2027. Equinor also reported lower core results for the second quarter, as anticipated, due to falling oil prices.