Trump's order to stop NY wind project shocks offshore industry and threatens other projects

The Trump administration's late Wednesday decision to stop construction of Equinor’s Empire Wind 1 off the coasts of New York sent shockwaves throughout the offshore wind industry. It raised concerns that developments with full permits, representing billions of dollars in investment, aren't secure.

Donald Trump, the U.S. president, had promised during his campaign to put an end to offshore wind energy. He argued that it was too expensive and harmful for whales and birds. On his first day as president, he issued an executive ordering suspending any new leasing of such projects within federal waters.

Doug Burgum, Trump's interior secretary, ordered on Wednesday that construction of the Equinor Project be halted, implying the environmental analysis underlying the project was flawed.

After Burgum's decision, Liz Burdock said, "Stopping the work on the federally-permitted Empire Wind 1 offshore projects should send chills throughout all industries that invest in and hold contracts with the United States Government."

"Stopping a permitted, financed and approved energy project from going forward sends an unmistakable message to all business - not just those in the offshore industry - about the safety of their investment in the U.S."

Oceantic, a group that advocates the expansion of an offshore wind supply network in the United States, reported that Empire Wind's chain attracted $1.6 Billion in investment, and supported more than 3500 jobs.

According to a trade group report published last year, the American Clean Power Association, it is expected that the industry will invest $65 billion into projects by 2030.

Other industry representatives said that the move was at odds with Trump's plans to increase domestic energy production.

Turn Forward's Executive Director Hillary Bright said, "The growing gap between the rising demand for electricity and energy supply is a serious threat to our economic growth." It is in our national interest to increase the deployment of valuable resources such as offshore wind.

A spokesperson for the Interior was not immediately available to comment.

Equinor announced on Wednesday that it would be engaging with the Trump Administration to better understand their concerns regarding the project's permits.

'CHILLING EFFECT'

Four offshore wind farms are currently in operation. Three other wind farms are currently under construction, in addition to Empire Wind. Orsted, a Danish company, owns two: Sunrise Wind near the coast of New York State and Revolution Wind near the coasts of Rhode Island. Dominion Energy is also building Coastal Virginia Offshore Wind. All three will begin producing electricity next year.

Orsted officials were not available to comment immediately.

"Coastal Virginia Offshore Wind" is now more than half complete, and will be finished by the end of 2026. Aaron Ruby, Dominion spokesperson, said that while we have other areas available for development in the future, there are no firm plans as of yet.

The National Ocean Industries Association (NOIA), another industry group which includes offshore oil and wind drilling businesses, expressed its hope to resolve any disputes it may have with the Trump Administration so that it can pursue new projects.

Erik Milito, President of the United States, said, "We are committed and will work closely with federal agencies, stakeholder groups, and the Administration to quickly resolve concerns and deliver energy options that align with our national priorities."

The League of Conservation Voters, an environmental group, however said that the reversal of Equinor’s permit would create uncertainty and undermine the confidence required for new investment.

David Shadburn is the Legislative Director of LCV. He said: "If the government can't be trusted to honor permits after thorough environmental assessments, it will have an effect on the clean energy sector and the entire business industry." The absolute last thing that the country needs is to ban clean, affordable energy. (Reporting and editing by Nichola Ellis; Nichola Groom)

(source: Reuters)