The developers of a proposed offshore wind power project for the waters off Long Beach are putting it on hold.
Equinor and bp today announced they are terminating the Offshore Wind Renewable Energy Certificate (OREC) agreement with the New York State Energy Research and Development Authority (NYSERDA) for the Empire Wind 2 project.
The developers had petitioned the state’s Public Service Commission to adjust its purchase and sales agreement with NYSERDA to offset inflationary pressures that were increasing the project’s cost. But the PSC denied their request in October.
As a result, Equinor and bp have pressed the reset button on the project that would have generated 1,260 megawatts of wind-powered electricity. They cited changed economic circumstances in the industry driven by inflation, interest rates and supply chain disruptions that prevented Empire Wind 2’s existing OREC agreement from being viable.
“Commercial viability is fundamental for ambitious projects of this size and scale. The Empire Wind 2 decision provides the opportunity to reset and develop a stronger and more robust project going forward,” Molly Morris, president of Equinor Renewables Americas, said in a company statement. “We will continue to closely engage our many community partners across the state. As evidenced by the progress at the South Brooklyn Marine Terminal, our offshore wind activity is ready to generate union jobs and significant economic activity in New York.”
While the Long Beach project has been suspended, the developers are going ahead with Empire Wind 1 off Brooklyn, on which they expect to start construction soon.
“bp is supportive of NYSERDA’s leadership and commitment to offshore wind, which we believe is a critical part of New York State’s and America’s clean energy future,” Joshua Weinstein, bp’s president of Offshore Wind Americas, said in the statement. “Offshore wind can deliver reliable renewable power as well as economic benefits to the state and its communities.”
Though the developers are terminating the current Empire Wind 2 OREC agreement, a spokesperson for the project stressed that the action isn’t its final cancellation.
“We will continue to mature EW2 and the lease area in anticipation of potential future bid solicitations, and we are still reviewing NYSERDA’s current RFP and remain encouraged by the state’s commitment to move offshore wind procurements in an expedited way,” said the spokesperson.
Image and article originally from libn.com. Read the original article here.