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The reversal of a month-old stop-work order on Empire Wind by the Trump administration has raised hopes that a more accomodative stance to renewable energy might be possible even with the blatantly resistant Trump administration. The $5 billion wind farm project off the coast of New York, has been allowed to proceed now, subject to a revival of a cancelled gas pipeline project by the state.
The Empire wind project had progressed significantly before the stop order came in April, leading to a weekly loss of $50 million a week during the pause. With 30% of the work done, abandoning the project was not an option its developer wanted to contemplate.
Norway based Equinor,the main developer behind the project had considered taking legal action against the Trump administration based on the federal and state permits it had for the project.
Orsted, another European developer that has high stakes in the US offshore market will also hope for the best after the permission for resumption of work at Empire Wind.
Gas Pipeline Quid Pro Quo
The deal is expected to revive pans to have the Constitution natural gas pipeline from Pennsylvania to New York which was cancelled in 2020 on environmental concerns.
Equinor had purchased the Empire Wind lease during Trump's first administration in 2017, and the 810-megawatt project was approved under former President Joe Biden in 2023. The Empire wind project was to be the predecessor to a wave of US offshore wind projects, that would have used mostly European suppliers for the coming decade. It remains to be seen how optimistic that prognosis turns out, considering the low oil and gas prices in the US that have put further pressure on power from offshore wind energy.
Even now, any further issues on the Constitution gas project risks creating fresh hurdles for the project, something Equinor will be aware of as it ponders a restart of work and more investments into the multi-billion dollar project.