Introduction to the Issue
New York’s first major offshore wind project suspended construction on Thursday in response to a stop-work order issued by the Trump administration — also potentially altering the future course of a city-owned Brooklyn port used as home base to support the project.
Empire Wind 1, developed by the Norwegian company Equinor, had just started work in the ocean off Long Island this month, after the land-side construction began last year.
The 54-turbine project, set to be located just 14 miles off Jones Beach State Park, was designed to power about half a million homes in New York City after an expected 2027 completion. It has already involved billions of dollars of private investment on top of tens of millions of public investment with the hopes to create thousands of well-paying jobs.
Background on the Project
On Wednesday, Interior Secretary Doug Burgum directed the federal Bureau of Ocean Energy Management to issue a stop-work order on Empire Wind’s construction and to review the project’s permitting.
Burgam’s letter was in line with President Donald Trump’s long-held hostility to wind projects, but the order to halt a permitted, ongoing project appeared to go beyond the president’s executive order to stop future federal leases and permits for offshore wind projects while federal agencies review their environmental and economic impacts.
In a statement, Equinor said it is “engaging with relevant authorities to clarify this matter and is considering its legal remedies, including appealing the order.”
Off-shore wind turbines create energy. Credit: Raphael Ruz/Shutterstock
Impact on the Industry
Amid the federal crackdown and uncertainty over how far the Trump administration would reach when it comes to wind projects, Empire Wind 1 seemed as though it might squeak past Trump’s order. But now, the halting of construction represents a significant setback for a beleaguered industry already plagued by pandemic-era supply chain constraints and inflation, which threatened the financial viability of the projects, locally and around the country.
The move also raises questions about New York State’s ability to develop enough renewable energy to meet its future electric needs and legally mandated goals — and threatens the promised economic boost the industry was expected to provide locally.
“We’re going to communicate and do everything that’s possible to get this job, get this project, moving forward,” Mayor Eric Adams said Thursday.
In a statement, Gov. Kathy Hochul indicated she would “not allow the federal overreach to stand.”
“This fully federally permitted project has already put shovels in the ground before the president’s executive orders — it’s exactly the type of bipartisan energy solution we should be working on,” she said.
Reaction from State Officials
State officials slammed the Trump administration’s action, pointing out that they run counter to Trump’s promise of U.S. “energy dominance” in the U.S. and fly in the face of the president’s declaration of a “national energy emergency.”
Doreen Harris, president and CEO of the New York State Energy Research and Development Authority, said the stop-work order was “fueled by a shortsighted, political agenda” and “goes against the Trump administration’s own prioritization of independent and locally produced energy and shows a complete disregard for a once-in-a-generation economic powerhouse like offshore wind energy.”
The Department of Public Service, another state agency, said in an unsigned statement: “Stopping an already fully permitted project is bad for New York workers, bad for New York energy needs, and bad for business. This action shows the world that federal commitments aren’t worth the paper they are printed on.”
Greening the Grid
In his letter to the Bureau of Ocean Energy Management, Burgam said information had come to light that raised “serious issues” about the approvals for Empire Wind but mentioned no specifics. He also asserted the stop-work order would “remain in effect until further review is completed to address these serious deficiencies.”
Offshore wind is a key part of greening New York City’s electric grid, which is predominantly powered by fossil fuels. The state’s climate law requires an electric grid powered by zero-emissions sources by 2040 and specifies the state must develop nine gigawatts of offshore wind power by 2035, enough to power about six million homes. Empire Wind 1 would contribute about 9% of that total.
Alicia Gené Artessa, director of the industry group New York Offshore Wind Alliance, said ending Empire Wind would “increase reliance on imported energy” and “halt job creation and economic development in New York while undermining grid reliability.”
Economic Implications
Equinor is also developing the city-owned South Brooklyn Marine Terminal in Sunset Park, Brooklyn, into a hub for the operations and maintenance of Empire Wind. The 73-acre terminal, where work has been underway since last May, is also envisioned to serve as a connection point to the electric grid for the wind project. It would be the largest port dedicated to offshore wind in the country.
The city Economic Development Corporation, which is overseeing the terminal redevelopment, declined to comment and instead deferred to City Hall.
Equinor already had been planning for the terminal to serve purposes beyond supporting wind projects, according to October meeting minutes of the EDC board of directors real estate and finance committee.
EDC officials indicated that when Equinor terminated its contract with the state in January 2024 amid financial challenges even before Trump’s second term, “it became clear that Equinor would need to fill the terminal with other users.”
By June, the company inked a new contract with New York to move the project forward.
Together, the revitalized marine terminal and the Empire Wind project are worth about $2.5 billion, according to Equinor. The construction of both the wind project and the terminal have involved more than 1,500 workers.
Empire Wind’s economic reach went beyond local construction: more than 100 American companies contracted with Equinor to complete the project, which had a supply chain spanning nearly half of the U.S. states and consisting of over 3,500 jobs, according to figures from the Oceantic Network, a trade group for the offshore wind industry.
“Preventing a permitted and financed energy project from moving forward sends a loud and clear message to all businesses, beyond those in the offshore wind industry, that their investment in the U.S. is not safe,” said Liz Burdock, president and CEO of Oceantic.
Conclusion
The halt in construction of Empire Wind 1 due to the Trump administration’s stop-work order has significant implications for New York State’s renewable energy goals, economic development, and the offshore wind industry as a whole. The project’s suspension not only delays the state’s transition to cleaner energy but also jeopardizes the creation of thousands of jobs and the investment of billions of dollars. As the situation unfolds, it remains to be seen how the state and federal governments will navigate this complex issue and find a resolution that supports the growth of renewable energy in the United States.
FAQs
Q: What is Empire Wind 1?
A: Empire Wind 1 is New York’s first major offshore wind project, developed by the Norwegian company Equinor, which aims to power about half a million homes in New York City.
Q: Why was the construction of Empire Wind 1 halted?
A: The construction was halted due to a stop-work order issued by the Trump administration, citing the need for further review of the project’s permitting.
Q: What are the implications of the halt in construction?
A: The halt in construction delays New York State’s transition to cleaner energy, jeopardizes the creation of thousands of jobs, and puts at risk the investment of billions of dollars.
Q: What is the role of the South Brooklyn Marine Terminal in the Empire Wind project?
A: The terminal is being developed by Equinor as a hub for the operations and maintenance of Empire Wind and will serve as a connection point to the electric grid for the wind project.
Q: How many jobs are involved in the construction of Empire Wind and the terminal?
A: The construction of both the wind project and the terminal has involved more than 1,500 workers, with a supply chain spanning nearly half of the U.S. states and consisting of over 3,500 jobs.
