The federal government has ended a temporary suspension of work on Empire Wind, a major offshore wind project near New York’s coast, as part of a deal that will revive plans for natural gas infrastructure in the region. The $5 billion wind farm, being developed by Norwegian energy company Equinor, can now continue construction after a month-long pause.
The agreement, announced Tuesday by Interior Secretary Doug Burgum, includes provisions for New York state to permit new natural gas pipeline development. This opens the door for the potential revival of the Constitution pipeline project, which would transport gas from Pennsylvania to New York but was abandoned in 2020 after facing numerous regulatory hurdles.
The news sparked positive market reactions, with Equinor’s stock rising and shares of Danish wind power company Orsted jumping 15%. Once completed in 2027, Empire Wind is expected to generate enough electricity to power 500,000 homes.
Equinor CEO Anders Opedal expressed relief at the decision, noting that the company had been spending $50 million weekly during the work stoppage to maintain the project. The 810-megawatt development, which began under Trump’s first term in 2017 and received approval during the Biden administration in 2023, is currently 30% complete and uses turbines manufactured by Vestas.
Governor Kathy Hochul indicated New York would collaborate with federal authorities and private entities on projects that comply with state regulations. Industry analysts at EBW Analytics suggested that while challenges remain for the Constitution Pipeline, the framework exists for a mutually beneficial arrangement.
The Interior Department had initially halted work on Empire Wind on April 16, claiming the previous administration had expedited approval without adequate environmental review. The suspension had created uncertainty in the offshore wind sector, raising concerns about the security of permitted projects representing substantial investments.
Norwegian Finance Minister Jens Stoltenberg, who had engaged with U.S. officials regarding Equinor’s situation, characterized the resolution as a domestic U.S. matter while acknowledging its positive
implications for investor confidence.
The decision comes amid President Trump’s broader energy policy, which generally excludes wind power from his domestic energy expansion goals. On his first day back in office, he issued an executive order temporarily stopping new wind project leasing and permits, citing aesthetic concerns, cost issues, and wildlife impact.
The National Ocean Industries Association welcomed the decision through its president, Erik Milito, who highlighted the potential for increased investment in American shipyards, job creation, and energy infrastructure development.
Currently, the United States has four operational offshore wind farms and four under construction, including Empire Wind, Orsted’s Sunrise Wind off New York and Revolution Wind off Rhode Island, and Dominion Energy’s Coastal Virginia Offshore Wind project.
Equinor plans to provide updates on the financial impact of the delay during its second-quarter results presentation on July 23. The company will now coordinate with suppliers and regulatory authorities to minimize disruptions caused by the temporary suspension.
The arrangement represents a significant compromise between renewable energy development and traditional fossil fuel infrastructure, potentially establishing a precedent for future energy projects in the region. Secretary Burgum emphasized that the deal would deliver economic benefits and lower utility costs for residents in New York and New England through increased access to domestic natural gas supplies.