Equinor Takes USD 955 Million Hit on US Offshore Wind Projects Amid Policy Shifts and Tariffs

Norwegian energy company Equinor has reported a USD 955 million impairment on its US offshore wind investments, blaming a trifecta of regulatory uncertainty, loss of tax incentives, and rising costs — all stemming from tariffs under President Donald Trump's administration.

The impairment follows a series of regulatory changes after Trump’s return to office in January 2025. On his first day, he suspended offshore wind leasing activity across US waters. In April, Interior Secretary Doug Burgum issued a stop-work order on Equinor’s Empire Wind development off New York’s coast. Albeit the order was eventually lifted, the temporary shutdown and surrounding uncertainty severely impacted the project’s future viability.

Equinor had secured its federal lease for Empire Wind during Trump’s first term in 2017, and investment plans were approved under the Biden administration in 2023. However, the recent shifts in US energy policy have created a volatile environment for long-term infrastructure planning.

While Empire Wind’s first phase will still receive ITCs, the second phase, along with potential future projects, will derive no benefit from the same financial support. Equinor had counted on multiple wind farms using the South Brooklyn Marine Terminal (SBMT), but those assumptions are now unlikely to materialise.

Further, the impact of increased tariffs, especially on steel, added nearly USD 300 million to project costs. The tariffs, coupled with the rollback of government support, have made large-scale offshore wind investments financially unviable.

Breakdown of the Impairment

Out of the total USD 955 million impairment, approximately USD 763 million is related to the Empire Wind 1 project and its associated South Brooklyn Marine Terminal. The remaining amount pertains to the lease for Empire Wind 2.

The terminal was designed to serve as a hub for multiple offshore wind installations, but with only one viable development in sight, Equinor now sees limited future utility for the facility.

Broader Implications for US Offshore Wind

Equinor’s write-down signals broader challenges facing the US offshore wind sector, which has struggled with policy inconsistency and cost pressures. The industry had gained momentum under the Biden administration but is now facing mounting uncertainty.

The impairment may also deter other global renewable energy developers from committing to long-term offshore wind investments in the US, especially in the absence of clear policy direction and financial incentives.