Another offshore wind project is canceled, citing inflation, interest rates, and supply chains

The companies said the agreement reflects “changed economic circumstances on an industry-wide scale” which includes “inflation, interest rates and supply chain disruptions.”

Published: January 3, 2024 8:29pm

The developers of an enormous wind project off the coast of New York announced the project has been canceled.



Equinor and BP said in a statement that they had reached an agreement with the New York State Energy Research and Development Authority to terminate the 1,260 megawatt Empire Wind 2 project.



The companies said the agreement reflects “changed economic circumstances on an industry-wide scale” which includes “inflation, interest rates and supply chain disruptions.”



“Commercial viability is fundamental for ambitious projects of this size and scale. The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward,” said Molly Morris, president of Equinor Renewables Americas.



Two months ago, Danish wind developer Orsted canceled the two-phase Ocean Wind project off the coast of New Jersey, citing the same economic problems as those that led Equinor and BP to cancel Empire Wind 2.

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