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The US has halted a $5bn offshore wind project that Norway’s Equinor is developing, dealing a blow to the embattled renewable power sector and signalling an aggressive new push against clean energy initiatives.
Interior secretary Doug Burgum ordered Equinor to “immediately halt all construction activities” on its 810 megawatt Empire Wind project off the coast of New York City, accusing the previous Biden administration of a rushed and insufficient analysis when it approved the group’s plans.
The decision to pause the project marks the latest escalation in the Trump administration’s offensive against the country’s offshore wind sector, which has prompted leading developers, including Shell and TotalEnergies, to reduce or slow down their American ventures.
President Donald Trump in January paused offshore wind leasing and permitting and ordered a review of already approved projects.
The Biden administration approved the Empire Wind project in November 2023. The project, which began construction last year and promises to create 1,000 jobs, is one of the largest federally approved projects and would be the largest offshore wind development to service New York City. Equinor said it would “engage” with the interior department “to understand the questions raised about the permits we have received from authorities”.
Unlike other renewable energy projects, the US offshore wind sector relies on the federal government for permitting approvals. More than 90 per cent of the country’s planned offshore wind projects, totalling more than 60 gigawatts, were at “serious risk”, said consultancy Rystad Energy.
New York Governor Kathy Hochul vowed to “fight” the Trump administration’s decision. “I will not allow this federal over-reach to stand,” she said in a statement. The state has set a goal of generating at least 70 per cent of its electricity from renewable energy by 2030, a target that is difficult to achieve without offshore wind.
The Trump administration’s attacks on offshore wind exacerbate the past two years of economic challenges facing the sector, which has been pummeled by more than two years of high interest rates and inflation.
Clean energy executives and analysts have warned that Trump’s attacks on offshore wind pose a threat to the American electricity grid, which is experiencing a historic surge in electricity demand from onshoring and the race to lead in artificial intelligence.
A federal pause on an already approved project could also set a precedent for projects across the energy sector and send a negative signal about the US’s stability as a business environment, they warn.
The Oceantic Network, a non-profit, estimates that more than $40bn has been invested in the US offshore wind sector. European companies back more than half of advanced American offshore wind projects, according to BloombergNEF.
“Doubling back to reconsider permits after projects are under construction sends a chilling signal to all energy investment,” said Jason Grumet, chief executive of American Clean Power, a clean energy group,
“These political reversals are bad policy, whether applied to pipelines or wind farms.”
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