Equinor Executes Offtake Agreement For Empire Wind 1: Details

Zinger Key Points
  • Equinor finalized a PSA with NYSERDA for renewable power from the Empire Wind 1 offshore wind project.
  • Equinor is divesting 19.5% stakes in production licenses in the Gina Krog field.

Equinor ASA EQNR finalized a Purchase and Sale Agreement (PSA) with the New York State Energy Research and Development Authority (NYSERDA) for renewable power from the Empire Wind 1 offshore wind project.

This agreement follows NYSERDA’s disclosed in February that Equinor had been chosen as a conditional winner in New York’s fourth offshore wind solicitation.

Construction is underway at the South Brooklyn Marine Terminal for Empire Wind 1, the first offshore wind project directly linked to the New York City grid. Power delivery is slated to begin by late 2026.

Empire Wind 1 is projected to achieve forward-looking real base project returns within the guided range for renewable projects, with a strike price of $155.00 per MW/h. Equinor plans to secure project financing after the final investment decision and expects closure by the end of 2024.

The signing of the offtake agreement further solidifies Empire Wind 1’s progress towards powering 500,000 New York homes with renewable energy. It will create over 1,000 union jobs during construction, boost local economies, and advance New York and the East Coast offshore wind industry.

Apart from this, Equinor is divesting 19.5% stakes in production licenses PL 048E (Eirin field) and PL 1201 to PGNiG Upstream Norway AS (PGNiG) in the Gina Krog field.

The Plan for Development and Operation (PDO) for Eirin was greenlit in January 2024. The field will be a subsea facility connected to the Gina Krog platform. The subsea template is being constructed in Egersund and will be installed in the summer of 2024.

Last month, Equinor ASA and Troll partnered to invest NOK 12 billion ($1.1 billion) in Troll West gas infrastructure for sustained exports until 2030.

Investors can gain exposure to the stock via Macquarie ETF Trust Macquarie Energy Transition ETF PWER and Pacer Developed Markets International Cash Cows 100 ETF ICOW.

Price Action: EQNR shares are down 0.25% at $27.69 at the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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