President Trump’s administration halts a $5 billion offshore wind project, sparking backlash from investors and New York officials as the Norwegian energy company loses $50 million weekly.
At a Glance
- The Trump administration suspended work on Equinor’s Empire Wind project off Long Island, citing need for further environmental review
- The project is losing $50 million weekly, with Equinor threatening to abandon it after already investing $2.5 billion
- Currently 30% complete, the project has created 1,500 jobs and was set to power 500,000 New York homes by 2027
- New York Governor Hochul and NYC Mayor Adams oppose the federal decision, calling it overreach
- Industry experts warn the halt undermines the federal permitting system and could deter future infrastructure investment
Federal Halt Threatens Billions in Investment
Interior Secretary Doug Burgum ordered a cessation of all construction activities on Equinor’s Empire Wind project, citing concerns about environmental impacts that require additional review. The Norwegian energy giant Equinor had secured all necessary permits and approvals, with construction well underway on what would be the first offshore wind project to deliver power directly to New York City. The project was designed to provide clean energy to approximately 500,000 homes by 2027.
“This halt is to remain in effect until further review is completed to address these serious deficiencies,” Interior Secretary Doug Burgum stated.
The unexpected stoppage has created financial turmoil for Equinor, which reports losing approximately $50 million per week. The company has already invested over $2.5 billion in the project and completed roughly 30% of the construction, including significant progress at the South Brooklyn Marine Terminal. Equinor executives have warned they may need to terminate the entire program within days without federal resolution.
Jobs and Energy Goals at Risk
The Empire Wind project currently employs 1,500 American workers, with plans to create up to 4,000 jobs across several states. New York Governor Kathy Hochul has strongly opposed the federal decision, emphasizing its negative impact on union jobs and the state’s clean energy goals. The project represents a cornerstone of New York’s transition to renewable energy sources.
“As Governor, I will not allow this federal overreach to stand. I will fight this every step of the way to protect union jobs, affordable energy and New York’s economic future,” said Governor Hochul.
NYC Mayor Eric Adams has personally advocated for the project in discussions with President Trump, calling it “a great project.” Opposition to the wind farm comes primarily from Long Island beach communities, commercial fishing interests, and certain Trump allies who have expressed concerns about potential environmental impacts and visual disturbances to coastal views.
Broader Economic Implications
The suspension has sent shockwaves through the renewable energy sector both domestically and internationally. Vestas Wind Systems, which was contracted to supply towers for the project, stands to lose a $1 billion manufacturing order if the project is permanently canceled. European business leaders have expressed concern about the stability of American infrastructure investment policies.
“Equinor invested in good faith. This is now about the sanctity of contracts … and the security of investments,” said Torgrim Reitan, Equinor’s chief financial officer.
The company is considering legal action, arguing that the federal order is unprecedented and potentially unlawful. Industry experts warn that retroactively denying permits for approved projects could create chaos in infrastructure planning and construction across the United States. The situation highlights growing tensions between federal environmental review processes and the need for regulatory certainty in major infrastructure investments.
Uncertain Future for U.S. Offshore Wind
The offshore wind sector in the United States was previously viewed as a promising growth market, but now faces multiple challenges including higher interest rates, supply chain issues, and increasing political opposition. If Equinor abandons the project, it will likely need to report a significant impairment loss in its second-quarter financial statements. The company has stated it will engage directly with the Bureau of Ocean Energy Management and the Department of Interior for clarification on the questions raised about its permits.
“This project is in a critical phase. We are about to start the offshore installations, and the installation window is now,” emphasized Torgrim Reitan, highlighting the time-sensitive nature of the construction schedule.
The outcome of this situation could significantly impact future investment decisions for renewable energy projects and other large infrastructure developments in the United States, potentially deterring private sector investment at a time when infrastructure modernization remains a stated priority for both major political parties.
