By Jennifer Hiller

Construction on the massive Empire Wind energy project off the coast of New York is set to resume after an abrupt about-face by the Trump administration.

Interior Secretary Doug Burgum halted the project by Norwegian energy group Equinor a month ago and suggested in a social-media post that the Biden administration had rushed through its approval without sufficient analysis.

That decision sent a chill through the renewable energy industry because Empire Wind's permits already were in place and construction had begun. Developers have been reassessing the risks around major energy and mining projects across the U.S. and questioning which other projects might end up on the chopping block.

Equinor had called the halt "unprecedented and in our view unlawful" but hadn't taken legal action. It was informed by the Interior Department that the stop-work order was lifted and credited lobbying by New York Gov. Kathy Hochul, New York City Mayor Eric Adams, and other politicians and labor groups for the reversal.

The Empire project is about 30% complete and had a book value of about $2.5 billion in March. Equinor said it would "perform an updated assessment of the project economics" this quarter. The project plans to start commercial operations in 2027.

"We appreciate the fact that construction can now resume on Empire Wind, a project which underscores our commitment to deliver energy while supporting local economies and creating jobs," said Anders Opedal, chief executive of Equinor, in a statement.

During his campaign, Trump directed criticism at offshore wind projects, which he promised to "end on day one" of his administration. His first wave of executive orders included a pause for federal permits and leasing for wind projects on land and at sea.

"We aren't going to do the wind thing," Trump told his supporters Jan. 20, twirling a finger in a circle to indicate the rotation of a turbine blade. "Big ugly windmills, they ruin your neighborhood."

Doreen Harris, chief executive of New York State Energy Research and Development Authority, said lifting the stop-work order on the Empire project will secure jobs for 1,500 construction workers and called the project "a cornerstone of New York's energy transition."

The first phase of the project would deliver around 800 megawatts of power to New York City, or enough to power around 500,000 homes, Equinor has estimated.

Halting the project would have affected businesses beyond New York. The Oceantic Network has said that the Empire Wind project has suppliers in at least 23 states including Ohio, Louisiana, Texas and South Carolina.

The U.S. first granted Empire a lease on the outer continental shelf off the coast of New York in 2017 and approved the plan to build a commercial offshore wind farm in early 2024.

While onshore energy projects are usually on private land, offshore wind requires a bevy of permits, studies and approvals from federal agencies, which presidential administrations can decide to fast track or delay.

Developers in recent years have already faced financial challenges including supply-chain snarls, rising interest rates and inflationary pressures that have projects far more expensive to build.

Write to Jennifer Hiller at jennifer.hiller@wsj.com

(END) Dow Jones Newswires

May 19, 2025 20:54 ET (00:54 GMT)

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