The PSAs set the terms under which these projects will supply homegrown, renewable power to New York and inject significant economic investments into the state’s economy.
The finalization of the PSAs concludes the contracts awarded in January 2021, when Equinor and bp were selected to provide New York State with offshore wind power in one of the largest renewable energy procurements in the U.S. to date.
Once completed, Equinor and bp’s portfolio of active offshore wind projects (Empire Wind 1, Empire Wind 2 and Beacon Wind 1) will produce enough electricity to power about 2 million New York homes, and will help generate more than $1 billion in economic output to New York State. This includes investments in ports and infrastructure that will reinforce New York’s position as the regional offshore wind industry hub—and a leading example of economic activity driven by the energy transition.
The offshore wind projects on the US east coast are key building blocks to accelerate profitable growth in renewables and our ambition to install 12-16 GW of renewables capacity by 2030. Equinor expects to deliver these projects within the return guidance communicated at the last Capital Markets Update in June 2021.
The completion of the PSA represents a major milestone and enables the start of project execution for the Equinor-bp partnership.
“Today’s announcement sets Equinor and bp on the path to provide over 3.3 gigawatts (GW) of offshore wind power for New York. It also offers a large-scale, tangible demonstration of the incredible economic activity and carbon reduction potential being driven by New York’s green energy transition,” said Siri Espedal Kindem, President of Equinor Wind US. “We are proud to help lead the growth of this exciting industry in New York.”
Doreen M. Harris, President and CEO, NYSERDA, said, “Offshore wind is bringing unprecedented investment to New York State, and we are proud to further cement ourselves as the offshore wind hub of the nation. Meeting our nation-leading offshore wind goal of 9,000 megawatts by 2035 will be an essential economic driver for the state, and these projects will help transform our energy system while providing thousands of family-sustaining jobs to bolster our growing green economy.”
Felipe Arbelaez, bp’s senior vice president for zero carbon energy, added: “These are world class assets and we are moving quickly and safely to get them producing the energy people need in the way that they want it – all the while creating positive ripple effects for the surrounding communities and industry. Today’s milestone is a critical step forward and we will continue to work hard to deliver the Empire Wind and Beacon Wind projects, providing clean energy and stable returns for decades to come.”
The PSAs agreed to with New York State finalizes the terms under which Equinor and bp will provide generation capacity of 1,260 megawatts (MW) of renewable offshore wind power from Empire Wind 2, and another 1,230 MW of power from Beacon Wind 1, while making substantial investments in New York’s infrastructure.
The projects include port upgrades to transform South Brooklyn Marine Terminal into a major staging and assembly facility for the industry, as well as an operations and maintenance base for the projects. Equinor recently announced the opening of a New York project office located in Sunset Park, Brooklyn, opposite the South Brooklyn Marine Terminal. The partnership will also invest in the Port of Albany, making it America’s first offshore wind tower and transition piece manufacturing facility.
ABOUT EMPIRE WIND AND BEACON WIND
- Empire Wind is located 15-30 miles southeast of Long Island and spans 80,000 acres, with water depths of between 65 and 131 feet. The lease was acquired in 2017 and is being developed in two phases (Empire Wind 1 and 2) with a total installed capacity of more than 2 GW (816 + 1,260 MW).
- Beacon Wind is located more than 60 miles east of Montauk Point and 20 miles south of Nantucket and covers 128,000 acres. The lease was acquired in 2019 and has the potential to be developed with a total capacity of more than 2 GW. This first phase will have an installed capacity of 1,230 MW.
ABOUT EQUINOR RENEWABLES US
- Equinor is one of the largest offshore wind developers in the U.S., where it operates two lease areas, Empire Wind and Beacon Wind.
- Together, Empire Wind 1, Empire Wind 2 and Beacon Wind 1 will provide New York State with 3.3 gigawatts (GWs) of energy —enough to power nearly two million homes—including more than 2 GWs from Empire Wind 1 and 2 and 1,230 megawatts from Beacon Wind 1.
- Fact sheet about Renewables assets including commercial terms (PDF 623KB)
ABOUT BP IN THE US
- bp’s ambition is to become a net zero company by 2050 or sooner, and to help the world get to net zero. bp is America’s largest energy investor since 2005, investing more than $130 billion in the economy and supporting about 230,000 additional jobs through its business activities. For more information on bp in the US, visit www.bp.com/us.
- bp’s commitment to the US dates back 150 years, its renewables portfolio includes wind, solar and, bioenergy.
- bp has built an onshore US wind energy business over a decade and operates a 1.7 GW gross portfolio across nine wind assets in the US, generating enough electricity to power 450,000 homes annually.
ABOUT SOUTH BROOKLYN MARINE TERMINAL
- Equinor and bp are investing in port upgrades to help transform the South Brooklyn Marine Terminal (SBMT) into a world-class offshore wind staging and assembling facility and to become the operations and maintenance (O&M) base both for Equinor and other project developers going forward.
- SBMT will become one of the largest dedicated offshore wind port facilities in the United States at approximately 73 acres, with the capacity to accommodate wind turbine generator staging and assembly activities at the scale required by component manufacturers.
- SBMT is being redeveloped together with the New York City Economic Development Corporation (NYCEDC) and terminal owner Sustainable South Brooklyn Marine Terminal (SSBMT). SSBMT is a joint venture of Red Hook Terminals and Industry City.
ABOUT PORT OF ALBANY
- Equinor and bp will combine forces with established wind industry companies, Marmen and Welcon, at the Port of Albany to help the port become America’s first offshore wind tower and transition piece manufacturing facility, where it will produce components for the Empire Wind and Beacon Wind projects.
- The site, located in the State’s Capital Region, stands to become a go-to destination for future projects to source offshore wind towers, transition pieces, and other manufacturing components for many years to come as offshore wind continues to grow along the East Coast.