Equinor and bp have announced the termination of their contract to sell offshore wind power to the US state of New York.
The agreement, which pertained to the Empire Wind 2 project, was dissolved on Wednesday.
This decision was made in response to a combination of economic factors that have impacted the viability of the project.
The termination was attributed to rising inflation rates, increased borrowing costs and challenges within the supply chain.
These factors collectively rendered the existing contract impractical, prompting Equinor and bp to reevaluate the project’s economic feasibility.
The Empire Wind 2 project is an offshore wind farm with a potential generative capacity of 1,260MW.
Molly Morris, President of Equinor Renewables Americas, said: “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.”
